Open House- The Real Estate & Mortgage Show: April 28, 2018
A rise in 5-year bank posted rates means an increase to some fixed mortgage penalties calculations. Find out how this may affect you on this week’s episode of Open House: The Real Estate and Mortgage Show.
Host Steve Gregory is once again joined by Frank Napolitano and Paul Rushforth discussing the latest in mortgage and real estate news.
When considering which mortgage is right for you, it’s important to consider the future. No one ever thinks they will break their mortgage before the end of their term, resulting in a penalty, and many actually do. This is when working with a Mortgage Brokers can be beneficial. Your Mortgage Broker has access to lenders that treat penalty calculations differently from the banks.
Paul explains that there are certain pockets of real estate inventory that won’t move as quickly as others such as the higher priced home or those outside of popular areas. Using a Real Estate agent is the best option to get the most for your money when buying or selling.
The team talks about the challenges for first time homebuyers including the stress test for mortgages and the rise in property values and purchase prices. Educating first time buyers is more important than ever in the current seller’s market in Ottawa where multiple offer scenarios are becoming more popular.
When it comes to renewing your mortgage, it is beneficial to start working with your Mortgage Broker at least 6 months prior to your maturity date. Banks are adding more pressure by offering clients interest rates for a short period. A Mortgage Broker has the ability to hold a rate for 120 days and if rates decline within that time period, clients will get the lower rate.
The episode wraps up with an overview of qualifying to purchase investment properties including how much down payment you need and how much of the rent a Mortgage Broker can use to offset the additional costs on your application.