The important stuff is in the fine print…

One of the biggest mistakes Canadians make on a regular basis is judging mortgages strictly on the lowest rate…this is one of the least important aspects of a mortgage in fact.  For those who watch the netflix show “House of Cards” it is in the details of the mortgage where the real gain or loss will occur.


For example, did you know that all of the major banks have made dramatic changes to how they calculate their mortgage penalties on fixed rate mortgages?  In the past they would merely work out what they would lose between your locked in rate and the current “going” rate and you would pay the difference on your mortgage balance.  While this calculation was always murky and hard to nail down to the exact dollar, it was generally understood by most Mortgage Experts at least.  Now the “Big Five” have figured out a quiet way to make sure their profits are maximized.  By retooling the calculation they have maximized their returns on all of these penalties…and the majority of mortgage borrowers have no idea.

For a detailed discussion on how these penalties work click here Bank Penalty article G&M

With the average mortgage term in Canada only lasting about 3 years before we break the term, this alone will have a massive impact on Canadians…yet the first question people always ask is “What’s your best rate?”

We do have ways around this situation…more soon.

Michael Anthony Lloyd




Introducing the Canadian Home Renovation Plan!

CHRP Logo Dream Home A new plan for Canadians to maximize their home buying experience! Have you looked to buy a new home and had a tough time finding everything “just right” the way you want it?

Your Home Your Way!

Your Home Your Way!

Many times purchasers will find a home that almost meets what they want, but needs just that little bit extra, from paint & carpet, to finishing a basement, to adding a suite, to modernizing a kitchen or bathroom…we’ve all seen it!  The problem is that with most Canadians having put all or most of their money into the down payment for that house, they can’t afford to make those changes.  At the very least they may have to wait to save up to make them.  We have come up with a solution for this very situation…The Canadian Home Renovation Plan or CHRP! We are able to have your additions/upgrades/changes added to the mortgage so that you can make the changes you want now, and have it included at the same low rate as the mortgage, keeping your cash flow low and your new home satisfaction high!  You won’t need an expensive unsecured Line of credit, credit card or loan…this money will be financed with your mortgage.  Approved by CMHC, Genworth & Canada Guaranty, Canada’s three Mortgage Insurers to the Banks and lenders, this is a real program you can take advantage of now.

Check out a sample report from one of our Pre-approved homes: click here We work with a select group of Realtors and Mortgage Brokers across Canada to bring this to all Canadians. For more information please fill this in:

Are your Credit Card Bills Arriving?

Holiday bills looming in the mail?
The holidays can really start to add up; vacations, dinner, gifts, that new PlayStation 4, that Spa day.  It happens!  So why pay up to 29% interest on your debts, when you could pay your credit card debts off with the lowest rate possible by refinancing your mortgage!

Refinancing your mortgage opens up the possibilities to:

Here are 3 tips to make it happen:

1.  Repair your credit – Follow our 6 Simple Secrets to Better Credit check list, and make sure you are still on track to refinance!  Low-income borrowers aren’t the only ones who can run into credit problems.  Someone with a higher score who misses a payment could take a bigger hit than someone with a lower score, because there’s further to fall when they stumble.

2.  Shorten the overall mortgage amortization – You can maximize your savings by opting for a new mortgage with a shorter amortization. Shift to a 15 or 20 year amortization from a 25 year and you will save thousands over your previous debt structure while likely paying out the same amount of payment per month.

3.  Build a good relationship with your mortgage professional – With new regulations, banks remain cautious about mortgage lending, but some show more flexibility to their better customers.  This is why having a good relationship with your mortgage professional is an asset. They can fight to get the best deal for you for the long run.

Ready to Refinance?

Contact Michael & his team now and discuss the options available to you. They can check to see if you would have a penalty to close your old mortgage early, how much it would be, and whether a refinance makes sense now or not based on running the numbers.  Regardless of the outcome, they can build a plan to help you with your budget and get you back on track for 2014!

the Michael Anthony Lloyd Mortgage team                            Ph. 604-341-8775  Email 

More “Behind the Scenes” Mortgage Rule Changes that will affect you

CMHC quietly made changes to one of their programs that will likely affect all fixed rates going forward.  With lenders having to find new avenues of funding their mortgages that will be more expensive, borrowers can expect those costs (approx. .20% -.65%) to be passed on directly to the end consumer, the borrower of a fixed rate mortgage.  While economically we don’t have anything pushing fixed rates higher presently, we can thank our own Government for making increases happen regardless.

It’s the perfect time for those in variable rates to ensure we have a fixed rate (the 10 year at 3.99% presently is probably your best bet!) held in your name so we can watch over the next 4 months what happens and make a decision then.

For more detail on the changes see the article from Canadian Mortgage Trends:

This Change Will Have a Direct Impact on Rates.

Call our office at 604.536.8208 or toll free 1.888.536.8208

Michael Anthony Lloyd

Dominion Lending Centre’s new National Commercial…

No Don Cherry on this one!

More upward fixed rate pressure…

The US Fed announced yesterday they will be slowing their buying of bonds and other monetary easing as they see the US economy starting to get into better shape…this caused mild panic on the stock markets, with most dropping suddenly late yesterday.  It also affected the Bond market in a way that it should not normally…with Bond Yields spiking.  See the below chart on the Canadian Government 5 year bond yield:

5 Year Gov't of Canada Bond Yield

5 Year Gov’t of Canada Bond Yield

What does this mean?  It signals that the Institutional Investor is nervous and unsure of where things are going…they don’t like that feeling!

Expect that this bumpy road will continue in the short term, until Investors see or feel more comfortable with the world economy…we will see more increases in the fixed rates, as well as some drops down the road.  Long term, there is no real justification for higher rates being maintained as of yet.

Michael Anthony Lloyd


Mortgage Lenders Explained…

There are numerous Mortgage Lenders we Mortgage Brokers have access to, this is an interesting video explaining the differences:

Cash at Closing Explained

New to Canada Mortgage Information

This is a great informational video for those folks new to Canada looking to buy or their family or friends.

You deserve to receive Cash at Closing!

We did a quiet launch of this program last year, but it is launching big time now!

Through a bundling of services much like when you take more services from Shaw, Telus, Rogers etc. we have joined with the Canadian Home Buyers Academy to bring our clients “bundled” pricing which results in you receiving cash when you close on your next home or sell your current home.

How does it work?

By joining the CHBA (Canadian Home Buyers Academy) for free, then using a CHBA registered Realtor & Mortgage Broker you will receive Cash upon closing.  How much?  Check out this table:


We can take care of everything for you, simply click here and send us your name, phone number and email address and we will sign you up:

Or for more information, click to see the website here.



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