Bank of Canada Increases Overnight Lending Rate

 

Bank of Canada Increases Overnight Lending Rate

Hello Shawn As expected the Bank of Canada increased their overnight lending rate by 0.25%, raising the Prime Lending Rate for most if not all of the lenders to 2.70%. Here are a couple of things that you need to know. Prime Rate Change: Most if not all of the lenders changed their prime lending rate from 2.45% to 2.70%. This change is effective March 03, 2022 for most lenders. This means if you have a Variable Rate, your payments will change for your next payment, that or the amount paid to interest will be modified. This depends on the type of Variable rate you have. Who does this affect: This change will affect every borrower with a variable rate mortgage or those wishing to obtain a new Variable Rate mortgage. This change will not change the spread on the variable rate (example Prime Minus 1.0%). The Variable Rate change does not affect Fixed rates. When will the Payment Amount Adjust: For most lenders the payment will adjust on the 2nd regularly scheduled payment following the rate change date. For monthly payments, the April 1st payment in most cases won’t change, but the payment May 1st will reflect the new payment amount. For Weekly payments, assuming payments are on Friday, if you had a payment on Friday March 4th, it would not change, for the payment on Friday March 11th, the payment would reflect the new amount. My opinion on Variable Rates: Although Variable rates have increased, Variable rate mortgages are still really low. You could expect a rate of 1.70% on a new Variable Rate mortgage, possibly lower. This is still quite a bit lower than fixed rates which are pushing the high 2% to low 3% range. So if you have any tolerance to a little risk, then these still might be for you. Further, depending on your circumstances it may be a better option, for example if you were planning to sell and break the mortgage, you would do much better with a variable rate as they are cheaper to get out of then fixed rates. Save the Date: The Bank of Canada is scheduled to meet again on Wednesday April 13, 2022.   Please don’t hesitate to contact me if you would like any additional information or if you are simply in need of any advice with respect to this or anything mortgage related. If you think this information could help out a friend or a family member, I would really appreciate it if you would forward this email or provide them with my contact information. I will look after them as if they were a friend or family member to myself.

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Phone / Text 403-828-1838 Email: mortgages@shawnmooney.com Website: www.shawnmooney.com

Some conditions may apply. Rates are subject to change. Subject to lender / insurer approval.

Mortgage Rate Update - October 17, 2016

As always, you can keep updated on current interest rates at www.shawnmooney.com/rates

Shawn Mooney |Bayfield Mortgage Professionals Ltd.

Broker of Record

Your Mortgage Broker for Life

Bus. # 403-945-8769 | Mobile # 403-828-1838

Email: mortgages@shawnmooney.com

Website: www.shawnmooney.com

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  Contact me for the best rate for you!!

Equity Take Out FAQ

Just what is an Equity Take Out or ETO?

An ETO (Equity take out) is simply pulling out the available equity in your house.  An equity take out can be done in lots of different ways.  For example, you could refinance your house and take out your equity this way or you could get a 2nd mortgage or you could look at a home equity line of credit.  There are advantages and disadvantages to each of the methods described above.  If you are considering this, first and foremost use a Mortgage Broker.  There are lots of companies out there that claim to be able to get money regardless of your credit rating and income.  As these companies might be able to do this, you may qualify for a much better option.  I will make sure to customize a solution to suit your needs. We also have mortgages for poor credit.  

With an Equity Take Out you can reduce monthly payments

Are you finding you don't have anything left over at the end of the month after paying all those monthly bills? Use the equity you have built in your home to help manage your debt. Consolidation can help you manage your monthly cash flow and relieve the financial pressure. I can help you with debt consolidation, and show you mortgage options that will help you regain control.

With an Equity Take Out you can pay off high interest credit card debt

Are you only making minimum monthly payments on your high interest credit cards, loans or lines of credit? Now is the time to take advantage of the equity you have in your home and pay down your high interest debt while actually saving thousands.

With an Equity Take Out you can Plan and build for your financial future

No extra cash available to help build your financial future. We can help you free up cash so you do have funds to invest for your retirement and your family's financial future.

Take out equity for almost any purpose!!

• Take a vacation
• Buy a vehicle
  
  
• Renovations for your house
• Get your house out of foreclosure
• Pay off Revenue Canada
• Pay off your property taxes
• Get rid of collections and judgement
• New Business
• Investments
• Second Properties
• Contact me for additional options

Please check out Equity Take out Mortgages on my website for more information.

http://www.shawnmooney.com/equity-take-out

Shawn Mooney |Bayfield Mortgage Professionals Ltd.

Broker of Record

Your Mortgage Broker for Life

Bus. # 403-945-8769 | Mobile # 403-828-1838

Email: mortgages@shawnmooney.com

Website: www.shawnmooney.com

Some conditions apply.  O.A.C.

Mortgage Rate Update - October 11, 2016

As always, you can keep updated on current interest rates at www.shawnmooney.com/rates

Shawn Mooney |Bayfield Mortgage Professionals Ltd.

Broker of Record

Your Mortgage Broker for Life

Bus. # 403-945-8769 | Mobile # 403-828-1838

Email: mortgages@shawnmooney.com

Website: www.shawnmooney.com

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  Contact me for the best rate for you!!