Changes in Bank of Canada overnight rate of interest target quickly get passed by way of variable/adjustable rate mortgages. Lower-ratio mortgages allow avoiding costly CMHC insurance all night . more equity, but require bigger first payment. Mortgages are registered as collateral against the property title until repayment to allow foreclosure processes if needed. Switching lenders […]
Mortgage rates are heavily influenced by Bank of Canada benchmark rates and 5-year government bond yields. Construction project mortgages impose maximum 18-24 month financing horizons suitable complete builds generating retention expiry incentives transitioning terms match investor owner occupant timelines upon occupancy permitting final inspection sign off. Lengthy extended amortizations over 25 years or so reduce […]
Government guarantees on mortgage backed securities allow lenders to fund mortgages at lower rates. Tax and insurance payments are trapped in an escrow account monthly by the bank then paid for the borrower’s behalf when due. The mortgage approval to funding processing timelines range 30-120 days from completed applications through risk assessing documentation verification appraisals […]
