Latest news with #Ratehub.ca
Calgary Herald
29-05-2025
- Business
- Calgary Herald
Demand up for mortgage renewals, slower for new homes
Prospective buyers have not been as busy to start 2025 as they were in 2024, at least when it comes to getting a mortgage for a new home. A recent report from found that mortgages for new purchases still remain the lion's share of all activity for inquiries on the online mortgage marketplace. Year to date, ending April 30, new mortgages made up 47 per cent of inquiries. Yet that's a substantial drop from last year when 71 per cent of inquiries were for new home purchases. Article content Article content Article content This year, demand for renewals is rising with 39 per cent of inquiries on year to date for mortgage renewal. Article content Article content Refinancing of mortgage inquiries made up the remaining 12 per cent of activity, up from six per cent in 2024. Article content Interest in variable rate mortgages also is increasing, the report found. It cited that five-year, variable rate mortgage made up eight per cent of inquiries on the website from Jan. 1 to April 30. Article content 'Fewer Canadians are looking to purchase a home amid a rocky economic climate.' Article content Renewals are likely to increase as many Canadians got mortgages in May and June of 2020 during the first wave of demand amid very low interest rates caused by the central bank slashing its overnight rate to spur the economy during the start of the pandemic. Article content
Toronto Star
25-05-2025
- Business
- Toronto Star
Breaking your mortgage to land a better interest rate ahead of renewal? Be prepared to pay up
With more than a million Canadians gearing up to renew their mortgages this year, some homeowners are racing to refinance ahead of their renewal due date. Data from rate-comparison site reported that refinance inquiries from Canadians have doubled to 12 per cent in 2025, up from six per cent in 2024. defines a mortgage refinance as breaking your current mortgage and starting a new one, either with the same lender or a different one. ARTICLE CONTINUES BELOW Refinancing can also involve changing your amortization length, lowering your monthly payment or tapping into the equity you've built into your home — all without a prepayment penalty if done at the end of your current mortgage term. These changes can be negotiated at renewal, which entails extending your current mortgage contract to a new term. Experts agree that timing a refinance with your mortgage renewal can help you avoid expensive penalties associated with breaking your mortgage before its end date. Personal Finance Ready to buy your first home? Here are the steps you need to take — and the closing costs you face There are many hoops to jump through when buying your first home, from saving a down payment and Breaking a variable-rate mortgage in the middle of your mortgage term results in a penalty equal to three months' interest, says Penelope Graham, a mortgage expert at rate comparison site Meanwhile, the penalty for breaking a fixed-rate mortgage early is either the greater of three months' interest or a calculation known as the interest rate differential. While refinancing at renewal can save you money on the penalty, there are other costs to prepare for. First, there are legal fees, which cover administrative costs in facilitating the transaction between you and the lender, such as registering the new mortgage and conducting a title search on your property, says Graham, adding that the cost of these services is generally around $1,000. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW There are some cases where your new lender might cover the legal fees for you, particularly if you have a mortgage balance greater than $200,000. 'If you stay with your existing lender, you will likely just need to pay this legal fee and registration fees for the new mortgage,' says Graham. 'But if you are switching to a new lender, you may also need to pay what's called a discharge fee.' Personal Finance Death binder 101: Your guide to assembling documents that make life easier for your survivors Everything from account numbers and subscriptions to social media instructions and passwords are The mortgage discharge fee is the cost associated with transferring the mortgage from the original lender to the new lender. In some cases, Graham points out, your new lender might cover or reimburse the mortgage discharge fee. 'So, if you're shopping around, it's certainly worth asking if that lender is willing to do that,' says Graham. 'Not all of them do, but a good chunk of them do.' Christopher Molder, principal broker at Tridac Mortgage in Toronto, adds that the mortgage discharge fee typically ranges between $250 and $400. If the goal of refinancing is to tap into your home's equity, be prepared to pay an appraisal fee. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Molder explains that the appraisal process — through a physical inspection or an automated valuation model — determines the market value of your home. This figure is then used to calculate how much equity you have in the home. Molder adds that with tax, appraisal fees can range between $300 to $1,000. Personal Finance Amid U.S. tariff storms, you really need a rainy-day fund. Here's where to park your money Experts says keeping emergency cash liquid is crucial, in an account that earns at least some For borrowers planning to refinance at renewal, Graham recommends exploring your options as soon as possible. ' Refinance rates can be a little bit different than straight purchase rates or renewal rates … so time is certainly a benefit to have on your side, and the sooner you kick off this process of exploring your options, the better off you'll be.'
Toronto Star
04-05-2025
- Business
- Toronto Star
Amid U.S. tariff storms, you really need a rainy-day fund. Here's where to park your money
It turns out, Canadians aren't just nice — we're also pretty good savers. The Financial Consumer Agency of Canada found that as of 2024, 53 per cent of Canadian adults had an emergency fund that could cover three months of expenses. Personal Finance Bringing a dog home just got more expensive. Here's how to keep your best friend happy and healthy on a budget Aspiring dog parents can expect to pay between $1,750 and $4,655 in upfront costs to bring one home. Now, a first-quarter survey by EQ Bank finds that 53 per cent of respondents have increased the size of their emergency savings in the past three months or are planning to do so. Deciding where to park your cash, however, is just as important as how much you put aside. ARTICLE CONTINUES BELOW The general rule of thumb is to have three to six months' worth of living expenses at the ready should your economic life go awry. Personal Finance Death binder 101: Your guide to assembling documents that make life easier for your survivors Everything from account numbers and subscriptions to social media instructions and passwords are But the actual amount you need can vary depending on several factors, including your job stability, says Jason Heath, managing director at Objective Financial Partners in Toronto. 'If somebody is a business owner that is in a sector that's reliant on the economy being good,' says Heath, 'I would be more inclined these days to have a larger emergency fund.' Liquidity is key when deciding where to keep your cash, says NerdWallet Canada spokesperson Shannon Terrell. 'Your emergency fund is like a financial fire extinguisher,' she says. 'You hope you never have to use it, but should the need arise, you want it within reach — not stuffed inside a cabinet.' Natasha Macmillan, director of everyday banking at rate comparison site agrees. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW 'Since emergencies are unpredictable, you'll want an account that is easily accessible. You should be able to withdraw your funds instantly and with no penalties.' Macmillan suggests looking at a high-interest savings account (HISA) or a cashable guaranteed investment certificate (GIC) that allows withdrawals before maturity. Both options offer a balance of security, flexibility and returns, she adds. She also recommends comparing interest rates at various institutions and reading the fine print on whether an account has minimum balance requirements or fees. Some HISAs, for instance, charge a fee after you exceed an allotted number of free withdrawals or transfers. Look for an account that offers Canada Deposit Insurance Corporation (CDIC) insurance, which protects up to $100,000 held in accounts at eligible institutions, Heath advises. And it's generally best to avoid tying up emergency funds in investment accounts, like mutual funds, stocks and ETFs, says Macmillan. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW 'You want your emergency funds accessible and safe, not invested in the market where your funds will fluctuate.' Terrell agrees, adding that it can take days, sometimes weeks, for trades to settle in your account — a difficult timeframe when dealing with financial emergencies. Be careful about keeping your emergency fund in a TFSA or using your RRSP for emergency savings. While TFSA withdrawals are not taxed, Terrell cautions that re-contributing that amount in the same calendar year can trigger a one per cent monthly penalty if you accidentally over-contribute. 'RRSP withdrawals, on the other hand, are subject to withholding tax and are counted as taxable income, which could lead to a bigger bill come tax season.' With tax season wrapped up for most Canadians, Macmillan suggests using a refund to launch your emergency nest egg or to top up an existing one. 'With economic uncertainty ahead, it's a smart time for Canadians to strengthen their financial foundations.'
