March 2022 – Canadian Housing Prices break new record highs

General David Cooke 25 Mar

If you have been reading  or watching the news lately, you know that housing prices have gone up considerably over the past 2 years.  While they have gone sky high in Toronto and Vancouver, even more affordable markets like Calgary and Edmonton have seen large price increases. After the initial lock down in Spring 2020, people realized that their homes were too small, that they didn’t have a home office and needed one or wished they had a hot tub or some other nice amenity after being forced to stay home for so long.

Calgary Real Estate

As a result, all the people who lived in condos with common hallways wanted to have a small home with their own exit. They didn’t want to share an elevator. As a result, starter homes stared selling like hot cakes. As sales in this price range went on , housing prices started to rise. I knew that eventually all the starter home owners would realize this and sell their homes and move up to larger properties. In 2021 that’s exactly what happened. In Calgary, people living in basement suites started buying up condos as starter homes became too expensive.

Now in 2022, we are seeing a seller’s market like we have not seen since 2007.  Sellers are getting multiple offers .  I recently heard of a home being sold for $100,000 above the asking price. Why is this happening.?  One reason is that real estate investors are selling their properties in Toronto for $1.5 million and buying in the Calgary market to get more bang for their buck. In Calgary you can buy a nice home for $600,000. For an investor , they can take their $1.5M and buy 2 revenue properties here, making more monthly income and pocket $300,000 as well.

What can the average Alberta home buyer do?  Unless you want to compete against investors with deep pockets, there are a few things you can do.

The easiest thing to do is stay where you are. If you want a bigger house, or one with a furnished basement why not do this to your own home?  As property values have gone up you may have enough equity in your home to pull money out for the improvements you want to make..

Refinance Plus Improvements – this is a regular first mortgage. You pay out the old mortgage and pull more equity out by refinancing at a higher amount. You can get up to $40,000 for home improvements.  Get an estimate for the renovations and it is submitted to the lender. If the renos are less than $15,000 a cheque is issued when you finish the project. Over $15,000 , an inspector comes to check out the  project and then the lender issues a cheque.

A- Lenders –  Lenders who will lend on the estimated value after renovations have been done. There is no cap on these lenders but the interest rate will be higher.

Government Grants  There are some programs that will pay for a portion of certain renovations that will make your house more energy efficient and increase it’s value. At this time,

there are grants for the installation of solar panels and energy efficient windows. While you will have to pay a portion of these home improvements out of pocket, the grants do pay a significant part and the energy savings will pay off the investment over time.

If you want to know more about how to make your home a nicer place to live, contact me at 403-836-1201 or at http://davidcooke.ca

David Cooke has been a mortgage broker in Calgary since 2005.

 

 

 

A Year in the Life of a Calgary Mortgage Broker

General David Cooke 29 Jan

It’s January and the start of a new year. How will this year turn out? Perhaps a little different given the circumstances of the world in the past 10 months but I’ll bet it will go the same way as every year since I started as a mortgage broker in Calgary in 2005.

January

The beginning of the year starts with the people who made New Year’s resolutions to buy a home in the new year. Calls generally start within a few days. Some people are ready with a down payment and want to get a pre-approval before talking to a realtor , others have done nothing and need to improve their credit .  Around the third week in January, the credit card bills have arrived and some people are surprised at how much they spent on gifts and meals in the holiday season. They are already homeowners and they want to use the equity in their homes to pay off the holiday bills and leave some room for their annual winter vacation in the Sunny South.  We usually arrange for a mortgage refinance or a line of credit . It’s a lot cheaper than the 25% interest rate on a credit card and allows people peace of mind.

David Cooke - Calgary Mortgage Broker February-June

People have been out hunting for homes and now have their eye set on one in particular. They want to make an offer.  As we now know what they want it’s easier to qualify them. Possession days arrive and people start to move.

July-August

July starts with Canada Day and is followed by the Calgary Stampede. Most people are busy with parties and Stampede events but there are some who are not .  As a mortgage broker , i am licensed to provide mortgages for the whole province so this is when the people from Edmonton, Lethbridge, Milk River and other Alberta towns and cities make up the majority of calls.  August tends to be quiet and is the only time mortgage brokers can take a vacation.

September – December

With school back, there are still some home sales going on but now I get mortgage renewals for people who took 6 month mortgages years ago. There are more refinances and people pulling money out to buy a revenue property.  Some people are more pro-active. Their mortgages are coming up for renewal in winter and early spring. They want to know if they can lock in at the low rates we often see in the fall. Yes, we can provide up to a 120 day interest rate hold . That’s 4  months of security .

As Calgary is a city that generally experiences growth from people moving into the city from elsewhere, we get busy with mortgages called “New to Canada”  as they are for people who have just moved here in the past 3 years. Some people arrive with money in their pocket from the sale of a home in another country but no job yet. We can provide them with a mortgage under certain circumstances that gets them into a home before they have found a job and completed the standard 3 month probation period.

Finally we get to the end of the year. As usual, we have helped a lot of people to get into homes, to renew their home financing to save money and to pay off debts. And before you know it, another successful year has passed.

 

 

Townhomes in Calgary see Growing Demand

General David Cooke 18 Dec

A report in today’s Calgary Herald says that there is a growing demand for townhomes among new home buyers. While year to date sales to September 30th are down to 866 from 983 the year before, they have been continuing to grow throughout the fall and may surpass 2019 and 2018 total numbers. Why are these particular type of homes selling so well?   In a word – Covid19.

While condo apartments may offer closer proximity to downtown ,  having to walk down a hall with other people passing you, sharing an elevator with strangers is now a scary thing to do. People who live in condos spent 10 weeks this year staring out one window. Now they want views out front and back, the security of their own front door and no elevators. Add to this the fact that town homes are larger and have more room for home schooling and home offices and it’s no wonder that town homes are facing a resurgence in popularity.

Another nice feature of town homes is the patch of grass you get. This is nice for warm days when you want to sit out. Once again, the pandemic made us all more aware of the outdoors. Some town homes also come with garages or car ports, which are an attractive feature in a city that gets hail every summer.

Finally, a great new feature of town homes is that some of the new projects are available without condo fees. It’s possible to get a new town home that ‘s a lot larger than an apartment for the same monthly payment when you subtract the condo fees and add the payment to your mortgage payment. With historic low interest rates you might qualify for a town home that’s easily 50% larger than the condo you would have bought last year, pre-covid.

Be sure to contact your favourite Dominion Lending Centres mortgage professional to see how much home you qualify for and to get a pre-approval.

Applying for the Canadian Emergency Rent Subsidy

General David Cooke 25 Nov

 

 

In response to the COVID-19 pandemic, the Government of Canada has announced the Canadian Emergency Rent Subsidy (CERS)

If you are a small business you can apply for this rent subsidy.

Overview
Businesses who have seen a drop in revenue due to the COVID-19 pandemic may be eligible for a subsidy to cover part of their commercial rent or property expenses, starting on September 27, 2020, until June 2021.

This subsidy will provide payments directly to qualifying renters and property owners, without requiring the participation of landlords.

If you are eligible for the base subsidy, you may also be eligible for lockdown support if your business location is significantly affected by a public health order for a week or more.

Canadian Emergency Rent Subsidy

Expenses You Can Claim and Qualifying Properties
The CERS covers a portion of each qualifying property, subject to certain maximums. The CERS is calculated on a property by property basis.

Qualifying property can be owned or rented, and used for business. Excluded properties include homes, cottages, family residences.

What Are Affiliated Groups?
Special rules and limits apply to groups deemed to be affiliated by family or control.

COVID-19 Information Hub
You can find more information, advice, and resources in our COVID-19 Information Hub.

We hope that you continue to stay safe during these challenging times.

 

 

Another Record-Setting Month For Canadian Housing

General David Cooke 15 Sep

 

Canadian Housing Market Sets Record Highs in August

Toy house in a clearing with flowers and the impending virus COVID-19. Home Quarantine and Pandemic Protection Concept

Today’s release of August housing data by the Canadian Real Estate Association (CREA) showed a blockbuster August with both sales and new listings hitting their highest levels in 40 years of data–exceeding the record July activity levels. This continues the rebound in housing that began four months ago.

National home sales rose a further 6.2% on a month-over-month (m-o-m) basis in August, raising them to another new all-time monthly record (see chart below).

Unlike the previous two months in which activity was up right across the country, sales in August were up in about 60% of local markets. Gains were led by the Greater Toronto Area (GTA) and British Columbia’s Lower Mainland. With ongoing supply shortages in so many parts of Canada, it is interesting to note that the GTA and Lower Mainland also saw a considerable amount of new supply become available in August.

Actual (not seasonally adjusted) sales activity posted a 33.5% y-o-y gain in August. It was a new record for the month of August, and the sixth-highest monthly sales figure of any month on record. Transactions were up compared to last August in almost all Canadian housing markets.

So far this year, over 340,000 homes have traded hands over the Canadian MLS Systems, which was up 0.8% from the same period in 2019 despite the COVID-19 pandemic-induced recession.

“It has been a record-setting summer in many housing markets across Canada as REALTORS® and their clients play catch up following the loss of so much of the 2020 spring market,” stated Costa Poulopoulos, Chair of CREA. “Many markets dealing with inventory shortages have been seeing fierce competition among buyers this summer; although, that was something that had been anticipated for 2020 prior to COVID-19. It really does seem that the spring market shifted into the summer”.

According to Shaun Cathcart, CREA’s Senior Economist, “Activity shows signs of moderating in September”.

New Listings

The number of newly listed homes posted a further 10.6% gain in August compared to July. New supply was up in close to three-quarters of local markets, led by gains in the Lower Mainland, GTA and Ottawa.

With the August increase in new supply outpacing the rise in sales for the first time since the rebound began in May, the national sales-to-new listings ratio eased to 69.4% in August compared to 72.3% posted in July. That said, it was still among the highest levels on record for this measure.

Based on a comparison of sales-to-new listings ratio with long-term averages, only about a third of all local markets were in balanced market territory, measured as being within one standard deviation of their long-term average. The other two-thirds of markets were above long-term norms, in many cases well above.

The number of months of inventory is another important measure of the balance between sales and the supply of listings. It represents how long it would take to liquidate current inventories at the current rate of sales activity.

There were just 2.6 months of inventory on a national basis at the end of August 2020 – the lowest reading on record for this measure. At the local market level, a number of Ontario markets are now into weeks of inventory rather than months. So supply constraints are still prevalent in many parts of the country, especially in Ontario.

Home Prices

The Aggregate Composite MLS® Home Price Index (MLS® HPI) rose by 1.7% m-o-m in August 2020 (see chart and table below). This compares to a 2.3% m-o-m jump in July 2020 – the second largest increase on record (after March 2017) going back 15 years. Of the 21 markets currently tracked by the index, m-o-m gains were posted everywhere but Victoria and elsewhere on Vancouver Island.

The non-seasonally adjusted Aggregate Composite MLS® HPI was up 9.4% on a y-o-y basis in August – the biggest gain since late 2017.

The largest y-o-y gains were recorded in Ottawa (+19.9%) and Montreal (+16.4%), followed by increases in the 10% – 15% range in the GTA and surrounding Greater Golden Horseshoe markets. Moncton prices were also up in that range in August.

Prices were fairly flat on a y-o-y basis in Calgary, Edmonton and St. John’s, while climbing in the 3.5% – 5.5% range across B.C.

The MLS® HPI provides the best way to gauge price trends because averages are strongly distorted by changes in the mix of sales activity from one month to the next.

The actual (not seasonally adjusted) national average home price set another record in August 2020 at more than $586,000, up 18.5% from the same month last year.

Bottom Line

CMHC forecasted back in May that the national average sales prices will fall 9%-to-18% in 2020 and not return to yearend-2019 levels until as late as 2022. Instead, the national average sales price as of August has posted a 18.5% gain.

Housing strength is largely attributable to pent-up demand by households that have maintained their level of income during the pandemic. The hardest-hit households are low-wage earners in the accommodation, food services, and travel sectors. These are the folks that can least afford it and typically are not homeowners.

The good news is that the housing market is contributing to the recovery in economic activity.  

CMHC Annual Residential Mortgage Industry Report

The Residential Mortgage Industry report provides an in-depth view of the residential mortgage market in Canada: from mortgage origination to funding, covering insured and uninsured mortgages, and encompasses activity from all mortgage lender types. It is based on data available at the end of the second quarter of 2020. The following are key highlights:

Mortgage lender type trends

  • The report shows that in 2019, Canada’s big six banks maintained their strong foothold in the housing finance market, with a 67% market share of newly extended mortgages (see chart below).
  • Mortgage Finance Companies (MFCs) hold 20% of the insured mortgage space and credit unions stand at 12%.
  • Mortgage delinquencies of 90 days or more remained at low levels for all mortgage lender types, which suggests that a steady share of mortgage holders continued to be able to make their payments or were able to defer their mortgage payments.
  • MICs continued to represent 1% in nationwide outstanding mortgages, valued at approximately between $14 billion and $15 billion in mortgage debt.
  • Some MICs offered mortgage deferrals and other types of accommodations to financially strained mortgage consumers. An estimated 10% of mortgage consumers asked for a mortgage deferral.

Mortgage Funding Trends

  • Deposits continued to be the primary source of mortgage funding for the big six banks (66%) and credit unions (77%).
  • Covered bonds made up 17% of total mortgage funding for Canada’s big six banks at the end of the first quarter of 2020, representing an increase of 4% from 2019.
  • Private securitization continued to account for a very small share of the mortgage funding mix in Canada, with just 1.1%. However, the residential mortgage-backed securities market appears to be expanding
  • .

 

Dr. Sherry Cooper

Chief Economist, Dominion Lending Centres
Sherry is an award-winning authority on finance and economics with over 30 years of bringing economic insights and clarity to Canadians.

 

Great New Mortgage Products for Calgary Home Buyers

General David Cooke 8 Sep

Great New Mortgage Products

 

2020 has been a challenging year for us all. Housing sales were going well pre-pandemic with modest price increases in many areas of the country. March arrived and the start of the spring housing market with people feeling optimistic until the country shut down March 15th.

Housing prognosticators predicted that housing would drop and take a couple of years to recover. While sales did drop by over 50% in April, no one expected house sales or prices to increase so quickly. In July CREA (Canadian Real Estate Association) announced that housing sales had increased by 26% up by 14% over last year. Prices in some areas increased by up to 10%.

   “What a difference three months makes, from some of the lowest housing numbers ever back in April to the multiple monthly records logged in July,” CREA’s chief economist Shaun Cathcart said of the numbers.

While we were in the doldrums of April and May, mortgage lenders were hard at work trying to find ways to make it easier for borrowers and to encourage them to get back into the housing market when the lockdown was over.

As a result, several new mortgage products were introduced.

 

CASH BACK –  Cash back mortgages have been around for many years . The idea is that after you have put down your savings as a down payment , many people are cash poor and can’t afford to buy window coverings, build fences or do things to improved their properties. They have to wait for their cash flow to build up again. Cash back offers a percentage of 1%- 3% back at the time of signing which can be used for closing costs, or any of the items mentioned above,  A new twist on this was that you could get a $2000 cash back with a slightly higher interest rate but no claw back if you break the mortgage. . It should be noted that if you sell your home before the 5 year term is up on the 1-3% cash backs, you will have to pay back a portion of the cash back. For instance, if you sell the home after 3 years, you would have to pay back 2/5’s of the cash back for the 2 remaining years of the term.

PRINCIPAL ONLY TERM – Another interesting mortgage product that was introduced was the Interest Only Mortgage. For the first 3 months , the lender will allow you to pay the principle on the mortgage. As new mortgages are mostly interest payments this would save the average buyer of a $300,000 home, about $700 a month or $2100 for the 3 months. Once again, there’s a couple of thousand to pay down debts, or pay for window coverings

Finally, one lender spotted the problem with Purchase Plus Improvement mortgages. People find the perfect house but there isn’t a garage or perhaps the basement hasn’t been developed. They want to do this so they get a Purchase Plus Improvements mortgage which pays for the house with one cheque and then a second cheque is issued when the improvements have been made. The only problem is that most purchasers put all their money down on the down payment and don’t have anything for a deposit on the building project. Large companies understand the PPI program but small contractors can’t afford to carry the costs for a 4 week project. Now we have Purchase Plus Improvements WITH a Cash Back. Now you can plan to get the garage or basement done right away because you have the funds for the deposit.

This is great news for home buyers to get the home of their dreams. If you have any questions contact me at 403-836-1201

Is it worth it to break your mortgage early for today’s record low rates?

General David Cooke 18 Aug

Is it worth it to break your mortgage early for today’s record low rates? In a word, yes. In many cases, getting out of a mortgage where you are paying more than 3% for a mortgage rate of 1.89% today is often worth it.

A recent piece by Rates.ca gives an example of a client who had mortgage at 3.39%. He now could get 1.99%. The penalty was high’ over $32,000 but his broker showed him that by making a penalty free 20% prepayment and then re-investing his savings in prepayments over the next 5 years,  he saved an additional $19,248.

This strategy doesn’t work for everyone but it’s worth checking out your options. Call me if you want to crunch the numbers. Maybe we can save you thousands on your mortgage today.

Housing Market Continued Its Rebound in June and Early July

General David Cooke 15 Jul


Dr Sherry Cooper, chief economist at Dominion Lending Centres punished this article this morning. Of interest to my readers is that housing was up by almost 55% in Calgary

There was more good news today on the housing front. Home sales rebounded by a further 63% in June, returning them to normal levels for the month–150% above where they were in April when the pandemic-induced lockdown paralyzed the economy (see chart below). Data released this morning from the Canadian Real Estate Association (CREA) showed that for Canada’s largest housing markets, activity was strong. Sales rose 83.8% (month-over-month) in the Greater Toronto Area (GTA), 75.1% in Montreal, 60.3% in Greater Vancouver, 99.7% in the Fraser Valley, 54.9% in Calgary, 59% in Edmonton, 22.5% in Winnipeg, 34.8% in Hamilton-Burlington, 67.9% in London and St. Thomas, 55.6% in Ottawa and 43.6% in Quebec City. These m-o-m gains reflect the pent-up demand from what would have been a stellar spring housing season.

On a year-over-year basis, national home sales were up 15.2% in June.

Anecdotal evidence suggests that home sales continued to be robust in the first weeks of July. Daily tracking thus far this month indicates that activity has strengthened further in July.  According to Costa Poulopoulos, Chair of CREA, “realtors across Canada are increasingly seeing business pick back up”.

New Listings

The number of newly listed homes shot up by another 49.5% in June compared to the prior month with gains recorded across the country.

The national sales-to-new listings ratio tightened to 63.7% in June compared to 58.5% posted in May. There were only 3.6 months of inventory on a national basis at the end of June 2020 – a 16-year low for this measure.

Home Prices

The Aggregate Composite MLS® Home Price Index (MLS® HPI) climbed 0.5% in June 2020 compared to May (see Table below). Of the 20 markets currently tracked by the index, 17 posted m-o-m gains.

Generally speaking, prices are re-accelerating east of Manitoba, except Toronto for now. B.C. prices are also picking up except for Vancouver. Home prices are declining in Calgary, while elsewhere on the Prairies, prices are either flat or rising.

As usual, the price movements announced by the local real estate associations (for example, TREB in Toronto) were misleading because they are greatly affected by the types and sizes of housing sold during any month. The MLS® HPI provides a more accurate way to gauge price trends because it corrects for the changes in the mix of sales activity from one month to the next.The actual (not seasonally adjusted) national average price for homes sold in June 2020 was almost $539,000, up 6.5% from the same month the previous year.

The national average price is heavily influenced by sales in the Greater Vancouver and the GTA, two of Canada’s most active and expensive housing markets. Excluding these two markets from calculations cuts more than $107,000 from the national average price. In the months ahead, the extent to which sales fluctuate in these two markets relative to others could have significant compositional effects on the national average price, both up and down.

Bottom Line

CMHC has recently forecast that national average sales prices will fall 9%-to-18% in 2020 and not return to yearend-2019 levels until as late as 2022. I continue to believe that this forecast is overly pessimistic. Here we are in the second half of 2020, and the national average sales price has risen 6.5% year-over-year.

The good news is that the housing market is contributing to the recovery in economic activity. While the course of the virus is uncertain, Canada’s government has handled the COVID-19 situation very well from both a public health and a fiscal and monetary perspective. You only need to look at the debacle south of the border to see how well we have done. The future course of the economy here will depend on the virus. While no one knows what that will be, suffice it to say that Canada’s economy is en route to a full recovery, but it may well be a long and bumpy one.

The Bank of Canada had its first meeting today with Tiff Macklem at the helm. The Bank of Canada said full recovery from the virus would take two years (more on that in the next email).

Dr. Sherry Cooper
Chief Economist, Dominion Lending Centres
drcooper@dominionlending.ca

Predictions for Post Pandemic Housing Prices in Calgary

General David Cooke 9 Jun

Recently, the out-going head of CMHC , Evan Siddall, announced a study that predicted housing prices would drop by 9-18% in the coming months. He predicts that people will not be able to keep up with their mortgage deferral debt. This is an interesting prediction as housing prices have been rising in Toronto and Vancouver over the past month and new house sales are booming here in Calgary.

 

David Cooke , Calgary mortgage broker

CMHC chief Evan Siddall

Evan Siddall is a economist who worked for Goldman Sachs and Irving Oil before moving to CMHC .  His biography does not show any experience in housing economics. Mortgage default companies like CMHC, Genworth and Canada Guaranty will be working hard to keep families in their homes to avoid foreclosures. Banks and other mortgage lenders are setting aside large reserves to cover possible losses. I suspect that even after the mortgage deferrals are over, lenders and mortgage insurers will come up with other accommodations. Interest rate reductions , interest forgiveness and increased amortization are 3 of the items they could pull out of their toolbox.

Interest Rate Reductions

Benjamin Tal , the deputy chief economist at CIBC lives and breathes housing and has done so for many years. He has a different view of  Mr. Tal says that Canada’s economy is “frozen”. When this is over , housing demand will still be there and people’s jobs will still be there.

I would like to add another item. How about all those people who have spent 10 weeks in a small apartment during this pandemic?  Don’t you think that they will want a larger home? I foresee an increased demand for single family homes across Canada. Imagine what it must have been like to have to stay for weeks in a 400 square foot condo in downtown Vancouver?  It would feel like a prison. Add to this the fact that by not spending money for 3 months on public transportation, movies, dinner out and all those things we usually spend money on many people have saved for their down payment. In the Toronto and Vancouver markets house prices have inched up by 1.5% while the pandemic has been going on.

Locally, here in Alberta, home sales dropped in April due to the lock down but the number of listings stayed high resulting in an over-supply which brought housing prices down. However, now that the lock down is easing and people are getting back to work, there is pent up demand for housing. Speaking with one show home rep lasst week , she said that people have had a lot of free time and they spent it researching homes online. They know what they want, how much it’s going to cost and in the case of starter homes, they are making offers. I expect that as soon as they know when their new homes will be ready they will sell their present homes quickly and the more expensive homes will start selling.

Finally, interest rates have come down. Combined with house prices that are at least 5% lower, now is a great time to buy.Housing prices are at the lowest that they are likely to be this year.  Some lenders are even offering incentives that I have never seen before in my 15 years as a mortgage broker. One lender is offering a $2000 cash back bonus . Another lender is offering 3 months of no interest payments, just pay the principal . This can easily save you $3000 over 3 months. That pays for a new fence, or window coverings and gets you off to a strong start. If you are interested in knowing more about buying homes in Calgary, Okotoks or any surrounding area in Alberta contact me at 403-836-1201

TD Charges Woman $30,000 penalty to Break her Mortgage during Covid-19 Crisis

General David Cooke 1 Jun

TD Charges Woman $30,000 penalty to Break her Mortgage during Covid-19 Crisis

Perhaps you saw this headline last week. A woman who lost her income as a realtor, lost 2 tenants and could not keep up the payments on her home. As a result she sold her home in April before prices dropped. What she did not expect was the penalty for breaking her mortgage to be so high. She was expecting a 3 month interest penalty which would have been around  $3000. Instead the bank used a little understood clause which says ” 3 month interest or the IRD (Interest Rate Differential)  , which ever is greater. ” . This resulted in a penalty of $29,530 !  If you check your mortgage paperwork you will find this if you have a fixed rate mortgage. Here’s a definition of IRDDavid Cooke - Calgary mortgage broker

Realtor charged $30,000 to break her mortgage

Interest Rate Differental

The IRD is a compensation charge that may apply if you pay off your mortgage prior to the maturity date, or pay the mortgage principal down beyond the amount of your prepayment privileges. The IRD is based on:

1-the amount you are pre-paying and

2-An interest rate that equals the difference between your original mortgage interest rate and the interest rate that the lender can charge today when re-lending the funds for the remaining term of the mortgage.

source: Canada Mortgage Trends

How do you avoid getting whacked with a huge penalty for breaking your mortgage? The first thing to do is get your mortgage arranged through a Dominon Lending Centres mortgage professional. We are well aware of these penalties and one of the first questions we will ask is if you think you will be breaking your mortgage during the term.  If so we will recommend a variable rate which would have a 3 month interest penalty or taking a shorter term . If your job isn’t secure we will keep you away from these lenders as well.

Finally, most mortgage companies and trust companies that offer mortgages don’t have a posted fee. As a result, the IRD for many of them is 75% lower than the banks. You may not know that but your trusted DLC mortgage advisor does. Remember, in the future always go to a mortgage broker, we will save you money, time and aggravation  every time.

https://www.cbc.ca/news/business/mortgage-penalty-pandemic-1.5588741

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