Mortgage Minute: Your Questions Answered

Date Posted: June 3, 2022

Q: We’re on the fence as to whether we should lock our variable rate mortgage in, our bank is recommending locking in but all the homework we have done suggests that staying variable now that rates have increased is likely a better option, what should we do?

A: It’s always a tough decision when rates go up. The difference between a variable and a fixed is quite significant. For most customers I try to find out where they are financially and determine the best result. Most people like set payments; if you’re on a variable you can go in and set your payments a little higher so you know you are safe for any further increases.

More information on fixed vs. variable rate mortgages here.

Q: We purchased a home a month ago closing end of July, but we are just listing our home next weekend and hoping for a closing date of end of August on our sale so that we have some time to paint the new home before moving in, can we apply for a bridge loan before our house is sold?

A: You can only apply for a bridge loan once the house is sold. If you are still waiting for the house to sell you cannot apply for a bridge loan. If your home isn’t sold you will need to apply for a refinance and qualify.

Q: My partner and I went through a consumer proposal 3 years ago due to a job loss, we have since gotten back on our feet and are thinking of buying a home in the near future, would we qualify for a mortgage with the consumer proposal still on file?

A: Once you’ve paid off the consumer proposal, you need to have 2 years of re-established credit. If you have a significant down payment, there are alternative lenders that will lend to you.

For more information, reach out to a Mortgage Broker today!

To watch the full CTV Morning Live segment with Frank Napolitano; click here.