Randy - Your Fides Community Mortgage Agent

Choose whichever works best for your budgeting/ payroll.

Monthly: 12 payments per year
Semi-monthly: 24 payments per year
Bi-weekly: 26 payments per year
Weekly: 52 payments per year

Your lender may allow increasing your installment amount; every extra dollar contributed goes directly towards your principle balance, saving interest in the long run.

Most of our products allow a plethora of options for payment flexibility.

Don't care for these? Perhaps a no-frills (aka cheaper in rate!) product might be for you, if your situation allows!

FOR ILLUSTRATIVE PURPOSES (assuming a 5 year fixed term)

While we see an approximate 25% increase in the monthly installment amount, other factors are at play here:
- more money being allocated towards interest on a per payment basis (vs principal)
- a natural reduction in loan balance & amortization period (by which the new payment amount is calculated from)

Myth debunked!

GREAT TO KNOW (with the spring market upon us!): mortgage professionals use two main ratios as qualifying measures when determining overall affordability

GDS: housing expenses ideally shouldn't exceed 39% of your monthly income(s)

TDS: housing expenses and other debts ideally shouldn't exceed 44% of your monthly income(s)

Given that every situation is unique, it'd be best to consult with a mortgage professional if considering a property purchase and/ or refinance.

Core inflation when EXCLUDING mortgage interest fell to 2.5% in Dec 2022 (per Karyne Charbonneau, CIBC Capital Markets); reminder that 2% is the general target.

Could the rising rates - in their efforts to curb inflation - be the *primary* culprit after all (that are within our country's control)? Could the reality of lower rates come at a sooner time than expected?

There's certainly more to this, and I'm looking forward to the Bank of Canada's summary deliberations (aka meeting minutes, a FIRST in history) for more transparency regarding their decisions.