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Rising Mortgage Rates Affects Alberta Home Buyers

Posted by samanthas on August 27, 2013 in Finance, Home Living Tips with No Comments

Calgary Lethbridge mortgage brokerOver the last few years, interest rates on mortgages have been at all-time lows. Lately, however, these interest rates are starting to slowly rise again. Locking in for 5 or even 10 years on a mortgage rate – is considered a prudent way to protect yourself before they rise further.

Due to the rise in rates, many Canadians are also doing they’re very best to pay off their mortgages as quickly as possible to avoid paying more interest. The longer it takes to pay off the mortgage, the more interest will be paid out over that period.

The U.S. Federal Reserve is partly to blame for the rise in interest rates. As bond rates rise, mortgage rates follow suit. The question of whether or not Ottawa needs to step into the Canadian real estate market is still debatable.

Fixed rate mortgages have risen from 3% to 3.5% for a 5-year closed mortgage. Although this may not sound like much, over the duration of a mortgage, this can will amount to quite a bit more interest paid. For example, a $400,000 mortgage at 3.5% with a 25-year amortization period translates into $1,997.09 in monthly payments, with $64,944.76 paid in interest over a 5 year term. Compare that to the same mortgage at 3%, to get $1,892.99 in monthly payments, and $55,477.30 paid in interest over the 5 year term. That’s a difference of almost $10,000 in interest paid over the 5 years.

According to chief executive of CAAMP, Jim Murphy, the impact of higher mortgage rates will most certainly negatively affect first-time buyers, particularly since entering the housing market is difficult enough with sky-high property prices. “All of these changes have impacted the first-time buyer,” said Mr. Murphy. “Now we are seeing rising rates and that will have an impact too.”

It’s extremely difficult to crack the market as it is, let alone with increasing interest rates. Although the real estate market may be affected, your best option is to work with a Calgary Lethbridge mortgage broker who can shop your loan over lenders across Canada to find you the best rates and terms – often saving you thousands in interest over the term of the mortgage.  Since a mortgage broker works for you – not the bank – they can give you expert, unbiased advice – and it is free!

To have all your mortgage questions answered, contact Jim Black and his team at Mortgage Loans Alberta, (877) 394-9422, today.


Top Reasons to Use a Lethbridge Mortgage Broker

Posted by samanthas on April 14, 2012 in Home Living Tips, Oakville Ontario Services with No Comments

Lethbridge, Alberta is a wonderful place to live, work, play, and raise a family. This vibrant community is close to Calgary, the beautiful mountains and the border of the U.S. Buying property in this community is a great way to invest your capital. When looking to buy a home in this area, most people will require a mortgage in order to pay for a home. Rather than settle for what traditional banks and lending institutions can offer in terms of loan rates and mortgage conditions, use the services of a professional Lethbridge mortgage broker to get the best mortgage package possible. In particular, Jim Black, AMP is a mortgage broker that has the expertise and knowledge necessary to help all home buyers get approved for a mortgage.

Benefits of Using an Accredited Mortgage Professional

There are many reasons to use an experienced mortgage broker, rather than automatically turning to your bank for a mortgage. Some of these reasons include:

Reduce Your Work Load and Let Someone Else Do the Leg Work For You

Accredited mortgage professionals have the expertise and connections to find you the best mortgage package possible. Instead of you having to shop around looking for the lowest loan rate available for your mortgage, your mortgage broker can do that work for you. This takes the stress and frustration off your back so you can be sure to get the best package you can apply for.  Many mortgage products are not available to the general public.

Fill Out One Application

If you shop around for a mortgage yourself at each lending institution, you will most likely have to fill out individual forms for each lender. Rather than filling out numerous applications, simply fill out one form with your mortgage broker and allow them to shop it with lenders for approval to get the best mortgage product for your needs.  You will also not ruin your credit by having multiple credit reports pulled in a short period of time.

Get the Lowest Rate and Save Thousands

Your professional mortgage broker has access and connections to hundreds of lending products that provide a variety of rates and terms for a mortgage. They will know who to turn to in order to locate the lowest rate possible for your mortgage. By simply locking in at the cheapest rate possible, you can literally save thousands of dollars over the amortization of your mortgage, and pay your home off faster. Build equity in your home easily with a low interest rate on your mortgage.  They can also help you understand the small print and find the best terms for your personal needs.

Have Your Best Interests Taken Care Of

Since Jim Black and his award winning team work for you and not the bank, you can rest assured knowing that your best interests are being looked after. Traditional banks will only give you one option, which may or may not be in your best interests. Your mortgage professional will offer you unbiased advice that will help you in choosing the mortgage that’s right for you from the offerings of banks, credit unions, trust and finance companies as well as private lenders.  They are also your best option if you have a hard to place mortgage due to bruised credit, divorce, being self employed, new to Canada, a first time buyer or other reasons.  Mortgage brokers will help guide you through the entire mortgage process.

Service at No Cost!

Mortgage brokers are paid by the lenders, which means their services are at no charge to you! Take advantage of their knowledge, expertise and professionalism by using the services of an award winning mortgage broker like Jim Black, AMP.