Give me a fair break!

Sometimes you need to get out of your mortgage 

It’s impossible to plan for many of the things that will happen in our lives, like job loss, illness, divorce, relocation, or another personal matter. Or when much better mortgage rates become available.

The fact is, there are lots of reasons why it makes good financial sense to break your mortgage. Generally, to break your mortgage, you can expect to pay a prepayment penalty: the greater of either a) three months’ interest, or b) the interest-rate differential (IRD). With the IRD, your mortgage lender will want you to pay the equivalent of what they will lose by releasing you from your mortgage and lending the money at current rates.

Not all lenders calculate IRD the same way, and the differences can amount to thousands of dollars. It helps to know which lenders have the most fair prepayment penalties. With access to dozens of lenders – we’ve got that information at our fingertips.

Don’t let anyone tell you prepayment penalties are “all the same”. They’re not. If you ever need to get out of your mortgage out early, the right mortgage could save you thousands!

What is the Qualifying Rate?

The qualifying rate is a rate that lenders are required to use to calculate your debt service ratios when reviewing your mortgage application. It’s used to ensure that Canadians aren’t getting “in over their heads” with their mortgages, and applies to all variable and 1- to 4-year fixed mortgages. For 5-year mortgages, you are assessed on the rate your lender is offering you, which may make qualifying easier.  The qualifying rate is generally higher than the rate that your lender is offering. While you must “qualify” at that rate, your actual payments will be based on your contract rate.

Congratulations… to our Angels in the Night

We are passionate about “giving back” to our communities. In fact, volunteering and sponsorship have become an important part of our company culture. We are particularly proud of the hundreds of volunteers – brokers, staff, and our industry supporters – who participate in year-round fundraising efforts for our Angels in the Night Homeless Shelter Project.

We spend our careers helping Canadians get into homes; imagine the hardship of those who – for any reason – are homeless. We are committed to making a difference with Angels in the Night.

Each December, our volunteers visit shelters in local communities to distribute new clothing and much-needed supplies. Prior to the delivery, the shelters are contacted to find out what supplies are most required by the individuals and families in their care.

We have been quietly delivering clothing and supplies in this way for ten years now, and have raised over $2 million for homeless shelters in communities across Canada. And recently we were awarded the prestigious Best Community Service Effort Award at the 2013 Canadian Mortgage Awards.  For more information, visit www.angelsinthenight.ca