Demystifying Mortgages!

It takes the sum of many integral parts to define a successful Realtor.  Alex Irish & Associates understand the importance of having strong working relationships with the banks, insurance companies and real estate lawyers who dispense their expert financial and legal advice to our clients who are either selling or purchasing a home.

This past June 29th, one of our Team Members, Laura van Zeyl, hosted a ‘Realtor Event’ at one of our preferred  banking establishments, the Bank of Montreal, located at Dundas & Trafalgar. Joining Laura was Lina Violo, one of the bank’s most experienced Mortgage Specialists.  Lina has been with BMO for 36 years and is a pro at securing financing for even the most challenging of scenarios!

BMO offers a Smart Fixed Mortgage which is essentially a competitive 5 or 10 year rate which won’t increase during its term. It is possible to increase your monthly payments by 10% and make a lump sum payment of 10% each year to reach the ‘finish line’ sooner.  It is possible to pay off your mortgage faster and save interest with an amortization of 25 years or less.  As of July 5th, the APR (annual percentage rate) was 2.59% for a 5 year closed mortgage and 3.95% for a 10 year one.

First-time home buyers will receive up to $1,500 when they secure a BMO mortgage requiring mortgage default insurance and use their chequing account for their monthly payments. Additionally, effective January 1st, 2017, Ontario’s Liberal government announced that they will double the maximum Land Transfer Tax to $4,000 for first-time purchasers meaning that eligible home buyers in Ontario would not pay the Land Transfer Tax on the first $368,000 of their home’s purchase price.

There were several questions asked during our Realtor Event and all attendees found the session to be quite informative and left with a greater understanding of mortgages in today’s market.