The big news this week in mortgages is big. How big? One Trillion dollars big. The media has gone to town on this report by CAAMP. But really how much is One Trillion Dollars? Check out the video below expressing One Trillion as per July 2009 in the U.S..
You will notice in the report I posted above that the average Canadian has an interest rate of 4.22% on their mortgage. Personally I am surprised that it is that low. If your interest rate is higher than 4.22% and you read that report your next thought is “why am I the chump paying a higher fixed rate than the Canadian average?” Your next call is to your mortgage lender only to find out that the penalty to break your mortgage and refinance is prohibitively high. You are not alone. Since last year Ellen Roseman of The Toronto Star has been crusading for borrowers like you and she points some helpful tips to possibly mitigate the pain in her blog post How Mortgage Penalties Can Hurt You. All borrowers should be aware of Interest Rate Differential even if you are a first time home buyer.
Speaking of first time home buyers, I found two items regarding the dreaded extra or unforeseen expenses associated with buying a home. Helen Morris of the National Post writes Factor In All The Expenses Aside From Your Mortgage . She does a great job of covering all of the basics and in the Montreal Gazette CMHC published an advertorial specifically for first time home buyers regarding How Much Will My Home Really Cost?
That is the Mortgage Radar for this week. If you have any questions regarding your mortgage or you are looking for unbiased advise to compare to your bankers advise please feel free to write me at [email protected] or call me 416.461.0204ext2