"Interest rates are prices, and sometimes you get what you pay for."

One of the questions that I get asked all the time, which stumps me a little bit more than you might think it should, is "what is your best mortgage rate?". Typically when people ask this question they mean what is the lowest rate that I have access to, and while it should be easy enough to answer, the truth is that this question represents a common yet fundamental misunderstanding about mortgages and interest rates.

In this blog, we are going to talk about how a client of mine was able to rearrange her finances such that she and her partner could mortgage qualify for a $400K target house in their neighborhood.

The current law in Canada requires that any residential mortgage where the borrower has less than 20% down payment be insured against borrower default. The main insurer to the banks is CMHC (Canadian Mortgage & Housing Corporation) followed by Genworth, and Canada Guaranty. The insurance premiums are all the same among the three and depend on a few variables. In any regard, they can be a significant amount of money, in the tens of thousands of dollars added to the loan balance. The question often asked is how to avoid CMHC fees / can I avoid CMHC fees? Conversely, I hear prospective buyers say they are waiting to purchase until they have saved 20% in order to avoid CMHC fees. This article looks at the costs and benefits of CMHC ‘mortgage default insurance’ and whether or not it is a big deal.

How to Choose a Home Inspector in Canada

The practice of making an offer to purchase conditional upon a home inspection is becoming more prevalent, but many consumers have no idea how to choose a qualified inspector.