Ron Lefebvre, AMP
Mortgage Consultant

780.756.7457

Your Home & Mortgage
Broker vs Banker

You want it all: the best available rate with exactly the right features you need to live comfortably with your mortgage and pay if off in record time. If you want the perfect mortgage, you need to shop around. And that’s my strength. I offer access to over 50 of Canada’s leading lenders, including major banks, credit unions, and national, regional and private lenders. I do the research for you, finding you the best mortgage across multiple lenders.

Your bank, as great as they are with your day-to-day banking, may not be the best choice for your mortgage because they represent just one available lender. Access to lender choice is one difference between getting a mortgage from a Bank vs a Broker, here are more:

YOUR MORTGAGE BROKER YOUR BANK
MORTGAGE RATES Mortgage brokerages negotiate discounted rates with lenders, and have access to rate promotions and specials. Rates are set by the Bank. If there’s a better deal in the marketplace, you’ll have to find it yourself.
OBJECTIVITY Your Mortgage Broker works for you, not any one lender. Mortgage specialists are there to build business for the Bank.
SOLUTIONS Brokers have access to mortgages for the self-employed and those with past credit issues. It is difficult to get a mortgage for certain client situations.
COST The winning lender pays your Broker for the services and solution provided. Mortgage specialists are paid and incented by the Bank.
ONGOING SERVICE Brokers offer ongoing advice after your mortgage closes i.e. how to pay off your mortgage faster, power down debt, finance renovations or invest in property. There have been many regulatory changes, so it’s important to have access to a mortgage expert. No proactive ongoing advice is typically provided. You will get an annual mortgage statement.
AT RENEWAL Your Broker will go to bat for you again to make sure you have the best deal possible. You may not be offered the best deal initially, requiring you to proactively contact the Bank to negotiate.

Getting a mortgage is a very significant financial event. That’s why you want someone who is highly specialized in the mortgage marketplace and focused solely on your needs. Get in touch for advice that is relevant to your situation.

30-year amortizations can be a smart financial strategy

If you have 20 per cent equity or more, you can choose a 30-year amortization mortgage. Homeowners with less than 20 per cent down are not eligible for an amortization over 25 years. A longer amortization allows you to minimize your mortgage payments and free up cash flow for uses like investing, business needs, post-secondary education, maternity leave, home maintenance, or other life situations. You can keep your payments at a shorter amortization and only use this flexibility if the need arises. Having a mortgage that gives you room to breathe may be worth the extra cost in interest, and I can help you determine if this is right for you.

RON LEFEBVRE, AMP
Mortgage Consultant
780.756.7457

 

Ron Lefebvre, AMP
Mortgage Consultant
780.756.7457
Economic Update
Prime rate stays steady

The Bank of Canada announced today that it is keeping the overnight rate unchanged. The Bank continues to believe that increases will be required to achieve their inflation target, but that the pace of increases depends on many factors, including the effect of higher interest rates on consumption and housing, global trade developments, the persistent oil price shock, and the evolution of business investment. The next rate-setting day is Wednesday, January 9th.

Get in touch if you have questions about your mortgage plan, or if you need a new mortgage, are renewing, or are looking to refinance for debt consolidation, renovations or other large expenditures. If you or anyone you know is cash poor but house rich, now may be the time to consider a reverse mortgage. A reverse mortgage allows access to home equity without any mortgage payments on those funds. Ownership is always maintained and the homeowner is never required to move or sell. It’s a brilliant way to help children or grandchildren with their downpayment, buy a second property, start a business, or complete renovations.

It’s so important to work with an experienced professional who knows the right questions to ask to assess your situation and provide the direction you need to achieve your goals for homeownership and wealth building. Good advice early saves time, money, and stress!

We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact us for these unpublished rate specials.

Terms Posted Rates Our Rates
6 MONTHS 3.34% 3.10%
1 YEAR 3.59% 3.19%
2 YEARS 3.74% 3.19%
3 YEARS 3.89% 3.39%
4 YEARS 3.94% 3.64%
5 YEARS 5.59% 3.59%
7 YEARS 5.80% 3.74%
10 YEARS 6.10% 4.04%

Insured mortgage rates, subject to change. Conventional and refinance rates may be higher.
Some rates may not be available in all provinces. Consult a local Invis professional for more information. OAC. E&EO

Prime Rate 3.95%
5 yr variable 2.85%

Crunch the numbers and explore different scenarios with our website calculators.

RON LEFEBVRE, AMP
Mortgage Consultant
780.756.7457

Invis Inc. 600 – 5770 Hurontario St., Mississauga, ON L5R 3G5

Bank of Canada Rate Announcement, December 5, 2018.

The Bank of Canada has released a new rate announcement today that has maintained its target for the overnight rate at 1  ¾ %. The Bank Rate is correspondingly 2% and the deposit rate is 1 ½%.

 

Click here for more information.

 

Posted in Mortgages

“Canadians have been making spending adjustments in response to rate hikes and the arrival of stricter mortgage policies,” states The Huffington Post.

 

Learn more by visiting: https://www.huffingtonpost.ca/2018/11/14/canadians-mortgages-boc_a_23589592/

 

how cannabis legalization may affect your mortgage

The times they are a changin.

In October of 2018, Canada became the second country in the world to legalize marijuana, causing for amendments to the Residential Tenancy Act. The new Cannabis Control and Licensing Act, (CCLA) now permits Canadian homeowners to grow up to 4 plants anywhere on their property for personal use.

 

However – Growing Cannabis in the Home has its Setbacks


It has been popular practice for lenders to not lend on a property that has been used for growth of cannabis. Generally in the past, even one plant grown on a property may have resulted in it becoming blacklisted, making the property very difficult to mortgage. Lenders are also required to inform CMHC and the insurance companies.

As of yet, most lenders and insurers have said that they are still against growing in the home and are not looking to change their policies. Additionally, lenders have been steadfast to say that if one plant was shown to be there before legalization, it would again be considered an illegal grow-op and be unmortgageable.

That said, it only make sense for some homeowners and renters to want to take advantage of the legality of growing their own pot.


Clarifying the The Cannabis Control and Licensing Act


The CCLA amends the Residential Tenancy Act by adding a section to clarify the effect that legalization will have on residential tenancy agreements as they relate to smoking and growing marijuana on rental properties. To reiterate, under federal legislation adults can now grow up to 4 plants per household from seeds bought from licensed cannabis retailers.

Based on the rules in rental agreements or condominium bylaws, Renters, condo-dwellers and those who live in multi-family dwellings may not be allowed to grow cannabis in their homes. The CCLA states that any lease entered into before October 17, 2018 already prohibits the growth of cannabis in a home. If a lease has been entered into after October 17, 2018, it must specifically state that the tenant cannot grow cannabis.

Landlords, renters and condo boards should make sure to educate themselves on the options available to them.

Resources:


In Conclusion 

 

Currently, it is probably best to hold off on the growth of any cannabis. It’s too soon to know what the effects of future financing will be and most likely several months before lenders will begin to change their policies. Landlords should remain vigilant and remind their tenants not to grow cannabis just yet.

 

Would you like to learn about how cannabis legalization may affect your mortgage? Connect with me anytime to a chat!

Ron Lefebvre, AMP
Mortgage Consultant

780.756.7457

 

 

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