Fixed Rate vs. Variable Rate: What One Should I Choose?

75% of Canadians choose fixed-rate vs variable-rate mortgages because they want the "peace of mind" of paying the same every month and the rate not changing on them...but do they have the full picture? And what is best for you?

Most home buyers are unaware of the advantages when choosing a variable rate and have some misconceptions based on its name. Based on the past decade and a half, variable rates have been slightly lower than fixed rates, aside from 2007 and 2019. This may sound like a no brainer for a lower rate, but before you start leaning to one side instead of the other, let’s take a step back and understand what a fixed and variable rate means and the pros and cons of each. To conclude I’ll provide case studies on how to leverage a fixed and/or variable rate so you can determine which one is right for you.

First Time HomebuyersPaul DavidescuDecember 2, 20202020

How The Self-Employed Can Afford Bigger Mortgages | Gross Up Strategies and Stated Income Programs

With 15% of Canadians now being self-employed and COVID-19 being the catalyst to increasing this number, lenders are taking notice by reviving their stated income programs for entrepreneurs to afford more even though they declare less income.

Self Employed MortgagesPaul DavidescuAugust 18, 20202020, latest

The Breakdown on Mortgage Costs in Canada - How to Calculate Closing & Total Monthly Costs

Any mortgage calculator can whip up estimated monthly mortgage payments but what is often left as a surprise with many future homeowners is the addition of one-time closing and total recurring monthly costs in which the latter can account for approximately 40% of the monthly mortgage costs!

First Time HomebuyersPaul DavidescuJuly 19, 20202020, latest

Since the CMHC news on July 1 2020, has your mortgage affordability dropped 10-15%?

After a series of good news the last few weeks with mortgage rates dropping below 2% and the easing of the stress test, home buyers with under 20% down payments are about to afford 10-15% less starting on July 1st.

How Collateral Mortgages Help You Access Cash Without Breakage Penalties

A collateral mortgage is a type of mortgage product that is “re-advanceable,” which means the lender can loan you more funds as the value of your home increases without the need to refinance your home loan. In this case, your lender would register your property with a collateral charge, often for a higher amount compared to the loan amount required.

Mortgage Tricks, First Time HomebuyersPaul DavidescuApril 15, 2020Level Up Mortgages2020

Be $10,000 Wealthier Within 120-Days by Getting You Mortgage Pre-Approval Now

Most people who spend hundreds of hours house-shopping online don’t realize that spending a mere 28 minutes getting a mortgage pre-approval can make them $10,000 wealthier while getting protection from losing thousands of dollars.

Mortgage Tricks, First Time HomebuyersPaul DavidescuApril 14, 20202020

How Refinancing Saves Money and Shields You From a Crisis

Refinances let you tap into your home's growing equity and save money which can be a lifesaver especially in hard times. In this post, we talk about how it all works alongside what it looks like in action with some case studies about how clients on our team used the power of refinancing to save money and pay off expensive debt.

Mortgage Tricks, InvestorsPaul DavidescuApril 1, 20202020

Best COVID-19 Government Programs & Cashflow Strategies for Self-Employed People

As the COVID-19 global battle ensues, there have been decisive action by the Canadian government to give small businesses and workers the best chance of weathering the storm. We have compiled a live list of government grants and cash flow strategies that we believe are worth consideration for your small business so that you can continue to save for a mortgage down payment or make current payments on time.

Self Employed Mortgages, Current EventsPaul DavidescuApril 1, 20202020Comment

How COVID 19 Has Given Borrowers a Temporary Advantage When Financing a Property

As COVID-19 escalates dramatically in the second week of March 2020, several changes in the mortgage world directly start to affect homebuyers in both advantageous and potentially detrimental ways.

In the webinar above, Paul Davidescu speaks to the record low mortgage rates and how they are starting to trend upwards as lenders put in extra precautions and some even close their doors. We also cover the new-new stress test which replaces the one announced last month, and finally, we cover what else you can do as a current homeowner or renter to thrive in times of uncertainty.

Current EventsPaul DavidescuMarch 26, 2020covid-19, coronavirus, corona virus, Mortgage Tips, Mortgage Planning, 2020

The Coronavirus and Mortgage Rates: Is Now the Perfect Time to Buy?

The silver lining of the Coronavirus pandemic is that those who are in the market for a new home or investment property may be in for some big savings. Along with the outbreak of COVID-19, we’ve also seen mortgage rates drop to as low as two percent— which means now could be the perfect time to refinance or purchase a new home. If you’re curious how and why the Coronavirus is affecting the real estate market, and what this could mean for you, read on.

Current EventsPaul DavidescuMarch 10, 2020corona virus, real estate, wuhan virus, outbreak, covid-19, coronavirus, 2020

How to Build or Repair Your Credit Score So That You Can Get the Best Mortgage Rates

Only one-third of Canadians check their credit score before applying for a mortgage. Even fewer actually know what factors can improve or damage their credit score.

First Time Homebuyers, Immigrants and Newcomers, Self Employed MortgagesPaul DavidescuFebruary 27, 20202020

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