If you've owned your home for a while in Newfoundland and Labrador, there's a good chance something has been quietly happening in the background. Your mortgage balance has been coming down. Your home's value may have gone up. And somewhere along the way, you may have accumulated a significant amount of equity. Let's say your home is now worth $600,000 and you owe $300,000 on your mortgage. That's roughly $300,000 in home equity. Great. Now what? Because having equity and know

If you’re reading this while sitting in the lineup at Costco gas… you’re not alone 😅 And you’ve probably noticed — it’s creeping up again. Here’s why that actually matters for your mortgage: When gas prices go up, it pushes the cost of everything up — groceries, shipping, just life in general. That’s what drives inflation. Now here’s where it connects: When inflation stays higher than expected, the Bank of Canada usually holds off on cutting rates.That impacts variable rates

It’s one of the first questions I get asked:“What’s your best rate?” I get it — with rates plastered all over bank ads and online calculators, it’s natural to assume that the lowest rate equals the best deal. But here’s the truth most Canadians don’t hear:The lowest rate doesn’t always mean the lowest total cost. In fact, it could end up being the most expensive choice you make in your homeownership journey. Let me explain. 💡 Rate Is Just One Piece of the Puzzle When it come

On March 12, 2025, the Bank of Canada reduced its benchmark interest rate by 0.25%, bringing it down to 2.75%. This decision has led many Canadian banks, including the National Bank of Canada, to lower their prime lending rates to 4.95%. Impact on Variable-Rate Mortgages Variable-rate mortgages are directly influenced by changes in the prime rate. When the prime rate decreases, the interest rate on these mortgages typically follows suit, leading to reduced interest costs for

The recent imposition of 25% tariffs by the U.S. on Canadian imports, effective February 4, 2025, has significant implications for Canadian homeowners and prospective buyers. In response, Canada has announced equivalent tariffs on U.S. goods. Potential Impacts on Mortgages: Interest Rate Volatility: The Bank of Canada may adjust interest rates to counteract economic uncertainties arising from these tariffs. Such changes could affect your mortgage payments, particularly if yo

Key Economic Data: Durable Goods: These are big items like cars and appliances that last a long time. GDP: Gross Domestic Product, which shows how much a country's economy is growing. Jobless Claims: How many people are filing for unemployment benefits. Corporate Profits: How much money companies are making. Consumer Spending: How much people are spending on goods and services. Treasury Yields and Economic News: U.S. Treasury Yields: This is the interest rate the government p

When shopping for a mortgage, many people focus solely on finding the lowest interest rate. While the rate is important, it's not the only factor to consider. Other aspects, like the mortgage term, payment flexibility, and prepayment options, can significantly impact your financial health and long-term savings. **Mortgage Terms**: Different lenders offer various terms ranging from one to ten years. Choosing the right term depends on your financial goals and market conditions.

Variable-Rate Mortgages and Fixed-Rate Mortgages Variable-Rate Mortgages: These mortgages change whenever the Bank of Canada changes its interest rates. So, if the Bank of Canada lowers rates, the payments on these mortgages will go down right away. But, not many people use these kinds of mortgages. Most people use fixed-rate mortgages, where the interest rate stays the same for a certain period, like five years. Fixed-Rate Mortgages: These are influenced by bond yields. A bo

In the Canadian mortgage landscape, front-line employees—such as healthcare workers, firefighters, police officers, and educators—are recognized not just for their essential services but also for their dedication to community safety and wellbeing. Recognizing their contributions, mortgage brokers in Canada often facilitate exclusive rate discounts tailored specifically for these professionals. A front-line employee in the mortgage context refers to any worker directly involve

Understanding Mortgage Penalties: Why They Exist When Breaking a Mortgage Early Breaking a mortgage before its term concludes often leads to penalties, and here’s why: 1. Lender's Lost Interest: When you sign a mortgage agreement, your lender expects a certain amount of interest over the term. Breaking the mortgage early disrupts this expectation. The penalty compensates the lender for the interest they won't be receiving as initially agreed. 2. Contractual Agreement: A mortg

I am not an economist. I could explain that the Bank of Canada has increased the Prime Rate for the eight time in a row because of .... on going tight labour market conditions or because Canadian's are being encouraged to pump the breaks on spending and real estate purchases but we all know what happened when our parents told us to stop (fill in the blank). "You can't tell me what to do!". We were determined to do the opposite. We are living in a time of excess AND access to