May 2019 Calgary Mortgage Update
Courtesy of our wonderful mortgage partner Renee Huse, we're excited to share a spring (almost summer) market update!
Hello Spring (almost)...
Mortgage Rates continue to be very aggressive. Lenders, both the big banks and the mortgage companies, have been very competitive with their fixed rate business. Fixed rates have fallen below variable rates. This is very different from what we were seeing 6 months ago.
I've attached a quick price matrix below for "with 20% down" and "without 20% down" to give you a general idea of where rates are sitting.
If you're currently in a variable rate mortgage paying Prime -0.50 (or more) it is worth a conversation to see if we could reposition your mortgage for further savings and preserve your interest rate for the next 3-5 years. As always - give me a call anytime to discuss!
Renée Huse | Mortgage Agent
High Ratio & Conventional Mortgages
Q. What is a “high ratio” mortgage and is it a good idea for me?
A. Purchasing a home with less than 20% down is called a “high ratio” mortgage. First time and second time home buyers often purchase their home using a “high ratio” mortgage. To put it another way, it means that your “down payment” is less than 20% of the value of the home. Because you have less than 20%, you are required to pay “default mortgage insurance.” Now this isn’t just a “write a cheque” scenario, they just tack the small insurance amount on to your overall mortgage amount. Although you have to consider default mortgage insurance if you have less than 20% down, the AMAZING news is that in today’s market the lowest rates being offered are for “high ratio” mortgages. We’re actually seeing some customers elect to pay the default mortgage insurance to obtain the lower interest rates!
Q. What is a “conventional” mortgage and is it a good idea for me?
A. If you are purchasing a home with a down payment that is MORE than 20% of the purchase price of your home, you are applying for a “conventional” mortgage. The advantages of a conventional mortgage are that:
You have the option to stretch the life of the mortgage over 30 years instead of 25 years and decrease your monthly payments.
You are not obligated to pay default mortgage insurance.
Typically, we see home buyers that have built equity over a few years utilize the “conventional” products.
The Real Estate Partners team at Re/max First are also excited to announce that our partnerships are always evolving and growing their business offerings to help further support our efforts in providing the best possible real estate experience. Renee Huse has added another asset to her team in the form of the ultra talented (Renee 2.0) Desiree!
Desirée will be helping to make sure that your file is ready for funding as quickly and smoothly as possible. We want to stay true to our tagline "The easiest mortgage, ever." She's available 9am-5pm, Monday to Friday, to answer your questions and provide file updates!
A little about this Super Woman:
Desirée is a massive fitness enthusiast and competed in her first fitness competition in June of 2018. She's a mental health advocate and believes whole heartedly in the positive effects of exercise on overall mental health. When she isn't multitasking the heck out of the mortgage business, golfing, baking or spending time with her family and friends, Desirée loves to unwind and relax with her Cockeranian pup, Blondie.
I've spent the last 3 months looking for the right addition to my team and I'm so thrilled to have met and recruited Desirée. Her empathetic and kind nature, coupled with her amazing customer service skills are the perfect addition to my team.