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A bank or an independent broker: where should Canadians looking for their first mortgage or those looking to refinance turn? Maybe it’s due to the enormity of the money that they’re hoping someone will lend them, but many people find applying for a mortgage or refinancing to be intimidating and stressful. However, it doesn’t have to be.

Big banks may be the obvious choice, but you have to wonder, when it comes to getting a competitive rate, will the banks be looking out for your best interest, or theirs? Do you want to put your trust in a big bank, or would you rather use the services of a qualified independent brokerage like Canadalend.com?

The choice seems pretty obvious.

Once you have settled on an independent brokerage, your next task is to find an agent. It’s not as easy as it seems. The Internet may be the new yellow pages, but that doesn’t mean you call the first name that pops up in Yahoo! or Google.

When it comes to getting a mortgage, loan, or refinancing, there are a number of qualities you should consider.

Licensed, Personal Attention and Service – Regardless of which province you live in, Canadalend.com agents are licensed professionals. Some so-called bank specialists, on the other hand, are not licensed and have no formal training.

Because you’re potentially borrowing hundreds of thousands of dollars, it’s more than a little reassuring to know that your Canadalend.com agent is current with Canadian mortgage financing rules and regulations.

For those who are not comfortable with negotiating or aren’t fully aware of all the different financial products and services, a Canadalend.com agent’s specialized skills and knowledge can make the entire process stress-free.

As a result, a Canadalend.com agent can help you with all aspects of a mortgage, from how much you can afford to borrow, to determining the best mortgage product, to finding ways for you to save money and pay off your mortgage or loan faster.

A Canadalend.com agent can save you time and energy with their personalized, licensed service. Because they’re independent, they can also offer you flexible hours; banks and credit unions, on the other hand…

Products – There are a lot of different financial products and services out there. For the average Canadian, it’s virtually impossible to keep track of everything, especially if you don’t keep up on the economy, interest rates, and mortgage rules and regulations.

Because Canadalend.com agents are licensed professionals and independent, they can shop multiple Canadian lenders and banks, looking for the best products at the best terms and rates. While a Canadalend.com agent has access to a huge number of Canadian home loan products, a bank or credit union only has access to their own institutional products—and will try to sell you one of their products, even if it doesn’t best suit your needs.

Because Canadalend.com agents are independent, you are assured that they will give you impartial advice.

Peace of Mind – There are a lot of brokerage firms to choose from, but no matter how many agents you talk to, you’ll quickly discover that Canadalend.com’s independent, licensed agents are the best in the field.

Make sure you feel comfortable with the agent you’re doing business with. Can they answer all of your questions, and does she or he act in a professional manner?

Be careful of high-pressure sales tactics; you are not under any obligation to continue on with the process. Never agree to a loan you do not understand. If you’re feeling pressured to buy a product, walk away.

At Canadalend.com, we want to make qualifying for a mortgage as stress-free as possible. Your Canadalend.com agent will negotiate on your behalf, getting you the best mortgage rate possible. They will also help you find the best way to pay off your loan quickly and reduce interest payments.

What do you need to look for in a mortgage broker? If you want a mortgage broker that embodies the principles, integrity, and ethics of his or her craft, then look no further than a Canadalend.com agent.

To learn more about Canadalend.com, visit www.canadalend.com .

Finding the perfect place to call home and settling in can be fun!

Buying your first home is a really big step. And it’s probably going to be the biggest purchase you ever make. While looking for a home is exciting, in this tight real estate market, it’s important to know what kind of mortgage you qualify for before you start the hunt. If you fall in love with a house, chances are someone else has, too. If you aren’t pre-approved for a mortgage, you could lose your dream home to someone who already is.

Understanding the financial side of getting a mortgage can be overwhelming and daunting. There are a lot of things that need to be figured out: how much you qualify for, interest rates, mortgage term (15 years, 20 years, 25 years), payment plans (weekly, bi-weekly, monthly), whether you want a variable or fixed mortgage, and the list goes on.

It can be hard for first-time home buyers to know where to start. After all, a lot of different factors go into determining what kind of mortgage you qualify for. It depends on your income, debt, and credit history. By shopping around and asking questions, you could end up saving yourself tens of thousands of dollars over the term of your mortgage.

Do you go to a bank to get your mortgage? If you do, are you getting the best interest rate? Are the terms and conditions best suited to your economic situation and lifestyle? Or are the banks just going to push their own products and services?

Better yet, do you use a mortgage brokerage like Canadalend.com, whose independent, licensed agents draw from all available mortgage products and provide you with impartial advice?

For the most part, all first-time home buyers want the same things—to maximize what they can borrow, to minimize their interest charges, and to pay off their mortgage as quickly as possible. When it comes to getting your first mortgage, the real difference comes in service and communication.

If you want to find out what kind of house you can afford; compare mortgage terms, rates, and amounts; or figure out how to save thousands by increasing your monthly mortgage payment, try Canadalend.com’s wide variety of interactive financial calculators.

Canadalend.com’s professional agents love working with first-time home buyers, helping them get the mortgage best suited to meet their financial needs and getting them into their dream home.

Canadalend.com’s licensed agents make it easy for first-time buyers to choose the right mortgage. Whether you need a big or small, fixed or variable mortgage, Canadalend.com agents work with all the major banks and lending institutions to get you approved in 24 hours.

A Canadalend.com agent is more than just the perfect resource for first-time buyers looking to get an approved mortgage fast! Your Canadalend.com agent can continue to be a great support, helping answer your questions and providing you with advice or referrals. At Canadalend.com, our goal is to help you achieve your short- and long-term financial goals.

What should first-time buyers look for when it comes to getting a mortgage? The nearest independent, licensed Canadalend.com agent!

After five years of historically low interest rates, Canadians are beginning to realize the low-interest-rate party is about to end. In 2007, Canadian interest rates fell to near-historic lows after the U.S. housing bubble burst. Now that the North American economy is regaining its health, interest rates are starting to rebound.

For example, in May 2007, a five-year Government of Canada benchmark bond yielded 4.53%. Since then, government interest rates in Canada have been dropping lower; by May 2011, the yield had fallen to 2.4%, in May 2012, 1.31%, and in May 2013, it dipped below 1.2%.1

But, Canadalend.com warns, Canadian homeowners shouldn’t get used to these historic lows. In fact, over the last few weeks, interest rates have turned a corner and are now rising at their quickest pace in years.

On Friday, June 21, 2013, a five-year Government of Canada benchmark bond returned 1.81%. That means that since this past May, the yield on a five-year Government of Canada benchmark bond has climbed 50%! Additionally, since May, the seven-year Government of Canada benchmark bond has increased more than 50%. While a 10-year Government of Canada benchmark bond has also increased approximately 50%.2

It’s important to be aware of the Government of Canada benchmark bond yields because they are the rates at which retail banks borrow money from each other and form the basis for saving and lending rates that get passed on to customers.

Why the sharp increase? On June 7, Statistics Canada showed that the Canadian economy had added 95,000 new jobs in May—a number much higher than previously forecasted. That high number is a strong sign that the Canadian economy is doing well.3

But perhaps most significant, on May 22, the U.S. Federal Reserve hinted that it was going to begin tapering off its $85.0 billion per month quantitative easing (bond buying) program. Furthermore, the Federal Reserve said it might end the stimulus program altogether in 2014.

As soon as the largest economy in the world—the U.S.—announces it is improving, interest rates in Canada will to start to tick higher, Canadalend.com observes. If this last month is any indicator, the rates could begin rising more quickly than many Canadians expect, which might negatively impact unprepared Canadian borrowers.

What that means is that anyone with a variable rate loan will have to pay more each month—stretching already strained budgets. For example, if you have a $100,000 mortgage, every one percent increase in interest rates translates into an annual increase of $1,000.

Today, most of the big banks charge prime plus one percent for a five-year variable rate mortgage; for example, with prime at three percent, that would mean you pay four percent. So, with the economy improving, banks are going to start charging more to borrow.

How high will interest rates go? Back in the fall of 2007, just before the U.S. housing bubble popped, the prime rate in Canada was around 6.25%. That means that a variable mortgage rate cost the average Canadian 7.25% to carry—81% more than today.

Besides up, where does Canadalend.com see interest rates heading? Over the short term, it wouldn’t be a surprise to see them return to their pre-recession highs from earlier in 2007.

To avoid paying the higher interest rates that are on the horizon, first-time homeowners and those looking to refinance should consider contacting their local Canadalend.com agent and seeing about locking in a longer term mortgage now.

At Canadalend.com, our experience has taught us that, when it comes to picking a mortgage, it’s better to be proactive than reactive—do whatever you can to save your money from rebounding interest rates. Whether you need a big or small mortgage, want it to be fixed or variable, Canadalend.com’s independent, licenced agents can help navigate the often confusing world of mortgages.

In fact, because Canadalend.com agents are independent, they are able to work with all the major banks and lending institutions to help you pick the financial products that best suit your budgetary needs. Our agents will also try to get you approved in 24 hours.

At Canadalend.com, we want to help you achieve your financial goals—both now and in the future. Take advantage of lower interest rates while you still can, and contact your nearest licenced, independent Canadalend.com agent.

Sources:

1. 1. “Canadian bond yields: 10-year lookup,” Bank of Canada web site, last accessed June 25, 2013,http://www.bankofcanada.ca/rates/interest-rates/lookup-bond-yields/ .

• “Government of Canada marketable bonds – average yield – 1 to 3 year,” Bank of Canada web site, last accessed June 25, 2013, http://www.bankofcanada.ca/rates/interest-rates/canadian-bonds/ .
• “Labour Force Survey, May 2013,” Statistics Canada press release, June 7, 2013, http://www.statcan.gc.ca/daily-quotidien/130607/dq130607a-eng.htm.

Record-low fixed mortgage rates can’t last forever, and today’s big banks are living proof.

In November 2008, the monthly average rate for a conventional five-year mortgage in Canada was seven percent. Since the 2008 market crash, Canadians have become accustomed to artificially low mortgage rates. In fact, it’s almost unprecedented; since 2010, the Bank of Canada has kept its key overnight lending rate at one percent—the longest period of unchanged rates in more than 50 years.

While the Bank of Canada has said it probably won’t raise its overnight lending rate until late in 2014, that doesn’t mean banks are going to sit back and wait. In fact, banks can raise longer-term mortgage rates well ahead of any action the Bank of Canada might make—and they are.

Back in May 2013, Canada’s five big banks were selling five-year fixed mortgages below 2.99%. On June 10, RBC made the first move, raising its rate to 3.29%. One month later, and it’s at 3.69%. Over the last two months, RBC’s rate has jumped almost 25%.

Granted, even though fixed mortgage rates are on the rise, they are still well below 2008 levels. That doesn’t mean first-time home buyers or those looking to refinance their mortgages should take a leisurely approach and wait. Doing so could be a costly mistake.

Today’s fixed interest rates are on the rise not because the Bank of Canada is hinting it will increase interest rates; they’re on the rise because of regular economic factors. When the Bank of Canada does implement a rate hike, most Canadians will be in for quite a shock. With that in mind, it’s an excellent time for those looking to buy a home to lock into a fixed mortgage rate.

At Canadalend.com, we think it’s important for first-time home buyers, or those looking to refinance at more favourable terms, to take advantage of today’s still-low interest rate climate.

But you can’t trust Canada’s big banks to look out for your best interests when it comes to getting a first-time mortgage. After all, it’s their goal to sell you one of their lending products, whether it’s in your best interests or not.

That could mean locking into an unfavourable term with high interest rates. And that can translate into additional interest charges in the tens of thousands of dollars.

As of July 15, 2013, the average monthly rate for a five-year fixed mortgage at Canada’s five big banks is 4.22%. CIBC is highest at 5.14%, while BMO is “lowest” at 3.59%. Fortunately, Canada’s biggest banks do not have a monopoly on lending products. Caisse Financial Group’s five-year fixed mortgage rate is 2.99%; that’s 41% less than CIBC and 16% below BMO. It pays to shop around—or at least have a brokerage like Canadalend.com do it for you.

Because Canadalend.com agents are licensed and independent, they can draw from all lenders who provide mortgage products, saving you time and money.

While Canada’s mortgage wars may be coming to an end, you can trust a Canadalend.com agent to help you find one that best suits your lifestyle needs.