Toronto Realty Blog

APRIL 18, 2022

As has been widely discussed, the Bank of Canada raised the overnight lending rate by 50 basis points last week, on the heels of a 25 basis point increase last month. The 5-year, fixed-rate mortgage isn’t affected by the overnight lending rate, but rather the variable is. Yes, 1.99%.

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Redfin

NOVEMBER 18, 2020

But before you get ahead of yourself, first things first, understanding what a mortgage actually is and how it works. In short, a mortgage is a loan from a lending institution to cover a home’s purchase. The bank or lending institution holds the note for the house as collateral for the loan.

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Housing Wire

MARCH 20, 2023

It is often said that the Fed raises interest rates until something breaks. Many have already pointed to the failures of Silicon Valley Bank , Silvergate Bank , and Signature Bank as evidence that the Fed “finally broke something.” In 2021, mortgage originations hit a record high of $4.4 trillion in 2023.

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Redfin

DECEMBER 15, 2023

In 2020, interest rates took a sharp dive as the Federal Reserve sought to stave off economic collapse amid the pandemic. The resulting low rates sparked a surge in real estate transactions, with numerous homebuyers securing 30-year fixed-rate mortgages below 3%. What is a mortgage refinance?

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Toronto Realty Blog

JUNE 20, 2022

monthly payment, how much, on average in the first year, was principal being paid down? $7. You’ve heard of the “interest-only mortgage,” right? In the meantime, his mortgage pre-approval expired! With the massive increase in interest rates, he is now looking at a five-year, fixed-rate mortgage of 5.19%.

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Realtor.com

MARCH 15, 2021

This mandated seller financing package appears to me to be like subprime lending even though my wife and I have 750 and above credit scores and could qualify for today’s low mortgage rates. Typically, sellers who finance the home sale charge a higher interest rate than a traditional mortgage lender would.

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Norada Real Estate

JUNE 22, 2022

You don't need to pay a bank attorney for the mortgage. Financing turnkey rental properties with cash means you don't need to put real estate taxes in escrow upfront nor pay for a mortgage application and loan origination fees. Types of Mortgage Options For Financing Turnkey Rental Properties. Fixed-rate mortgages.

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Redfin

JULY 11, 2023

Essentially, a mortgage enables individuals to become homeowners by providing the necessary funds upfront, with the property serving as security for the loan. How does a mortgage work? When you take out a mortgage, the lender provides you with a specific amount of money to buy a home. What are the different types of mortgages?

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Housing Wire

DECEMBER 29, 2023

“It finally seems like we are turning a corner and that’s good news after two years of the Fed’s negative perspective that we’ve heard,” Max Slyusarchuk, CEO of A&D Mortgage , said in an interview. I’m comfortable with lending there because I know I’m very familiar with the area.

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Housing Wire

AUGUST 11, 2022

In general, lower-rate mortgages are at a competitive disadvantage in terms of pricing in securitization and loan-trading liquidity channels in such an environment because they are worth less than the newer crop of higher-rate mortgages. It is externally managed and advised by an affiliate of Angel Oak Capital Advisors.

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Toronto Realty Blog

MAY 26, 2022

For those playing along at home, that would take us from an overnight lending rate of 0.25% to start 2022 up to 2.00% by the summer or fall. It could take five-year rates from sub-2% to upwards of 6%. But an increasing interest-rate environment is going to lead to higher fixed-rate mortgages over time.

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HomeLight

JUNE 22, 2023

And they need answers to their mortgage questions. Why must there be so many lending companies, all of which have different requirements and terms? As a first-time homebuyer, you’re likely among the 85% of buyers who will apply for a home mortgage instead of paying cash. Q: What’s included in my monthly mortgage payment?

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Toronto Realty Blog

JANUARY 6, 2022

Once upon a time, we saw a mortgage as a large liability. “I owe that much money to the bank,” we might think. Today, most of us, especially myself, see a mortgage as a payment plan. That is how I would choose to see that “half million-dollar mortgage” rather than being scared by the large number.

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HomeLight

AUGUST 28, 2020

Your mortgage company lends you $250,000. This $250,000 is called the loan principal. Your mortgage rate is what you’ll pay to borrow that $250,000 over time. It’s a percentage you pay on top of the loan principal. So, let’s say you’ll pay 5% interest on top of the $250,000 principal.

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The Close

DECEMBER 29, 2022

How else would you and your clients understand how much is being paid in principal and interest over the years? Annual percentage rate (APR). Clients may be confused about the difference between an interest rate on their mortgage loan and an APR. This is the amount of a property that a person (not the bank) actually owns.

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Toronto Realty Blog

SEPTEMBER 8, 2022

But let’s leave interest rates off the list, even though the Bank of Canada increased the overnight lending rate by 0.75% on Wednesday, because we knew that was going to happen. I want to talk about three things: trigger rates, variable vs. fixed spread, and alternative lenders.

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