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Listen "Decoding Mortgage Rates: What They Truly Mean for You With Lynn Kelly - Agent Tech Mastery Podcast"
Episode Synopsis
For mortgage advice: [email protected], 778-839-9363
Discuss recent Bank of Canada interest rate changes and their impact on mortgages, with insights from mortgage broker Lynn Kelly.
Key Takeaways
Bank of Canada rate cuts only directly affect variable rate mortgages, not fixed-rate mortgages
Fixed mortgage rates are based on bond yields, not the Bank of Canada rate
Pre-approval and understanding true affordability is critical before house hunting
Appraisals play a crucial role in determining how much a lender will finance
Topics
Bank of Canada Rate Cut Impact
Bank of Canada rate dropped from 4.25% to 3.75%
Banks' prime rate decreased from 6.45% to 5.95% as a result
Only affects variable rate mortgages, not fixed-rate mortgages
For every $100,000 of mortgage on a 25-year amortization, borrowers save about $30/month
Fixed vs Variable Rate Mortgages
Fixed rates currently around 4.2-4.4% for 3-year terms
Variable rates now around 5.45% (prime 5.95% minus ~0.5% discount)
Historically, variable rates tend to outperform fixed rates over time
Fixed rates offer payment stability, while variables can fluctuate
Variable rates easier to break (3-month interest penalty) vs fixed (interest rate differential)
Mortgage Pre-approval and House Hunting
Critical to get pre-approved before house hunting
Pre-approval should involve detailed discussion (1+ hour) about finances, not just a quick check
Buyers should not exceed pre-approved amount, even in competitive situations
Appraisals determine maximum financing, regardless of purchase price
Buyers may need to cover shortfall if appraisal comes in lower than purchase price
Appraisal Process
Lenders finance the lesser of purchase price or appraised value
Appraisers use recent comparable sales to determine market value
Adjustments made for property differences (e.g., single vs double garage)
Banks have lists of approved appraisers; brokers choose from that list
Next Steps
Potential homebuyers should seek thorough pre-approval before house hunting
Work with reputable agents and mortgage professionals who prioritize education and client protection
Be cautious of overbidding in competitive situations, considering appraisal risks
Consider speaking with Lynn Kelly for mortgage advice: [email protected], 778-839-9363
If you stuck and piecemealed your business together? Let's get you where you want to go. If you want our help to do that, book a call with Agent Tech Mastery at https://www.agenttechmastery.com/applypod it's absolutely free and possibly the best call you have ever had to change your business. Again, https://www.agenttechmastery.com/applypod
As always, I would love to hear your comments. Reach out after you watch/listen.
PS. You can find us on any of your favorite podcast apps by searching for Agent Tech Mastery.
Discuss recent Bank of Canada interest rate changes and their impact on mortgages, with insights from mortgage broker Lynn Kelly.
Key Takeaways
Bank of Canada rate cuts only directly affect variable rate mortgages, not fixed-rate mortgages
Fixed mortgage rates are based on bond yields, not the Bank of Canada rate
Pre-approval and understanding true affordability is critical before house hunting
Appraisals play a crucial role in determining how much a lender will finance
Topics
Bank of Canada Rate Cut Impact
Bank of Canada rate dropped from 4.25% to 3.75%
Banks' prime rate decreased from 6.45% to 5.95% as a result
Only affects variable rate mortgages, not fixed-rate mortgages
For every $100,000 of mortgage on a 25-year amortization, borrowers save about $30/month
Fixed vs Variable Rate Mortgages
Fixed rates currently around 4.2-4.4% for 3-year terms
Variable rates now around 5.45% (prime 5.95% minus ~0.5% discount)
Historically, variable rates tend to outperform fixed rates over time
Fixed rates offer payment stability, while variables can fluctuate
Variable rates easier to break (3-month interest penalty) vs fixed (interest rate differential)
Mortgage Pre-approval and House Hunting
Critical to get pre-approved before house hunting
Pre-approval should involve detailed discussion (1+ hour) about finances, not just a quick check
Buyers should not exceed pre-approved amount, even in competitive situations
Appraisals determine maximum financing, regardless of purchase price
Buyers may need to cover shortfall if appraisal comes in lower than purchase price
Appraisal Process
Lenders finance the lesser of purchase price or appraised value
Appraisers use recent comparable sales to determine market value
Adjustments made for property differences (e.g., single vs double garage)
Banks have lists of approved appraisers; brokers choose from that list
Next Steps
Potential homebuyers should seek thorough pre-approval before house hunting
Work with reputable agents and mortgage professionals who prioritize education and client protection
Be cautious of overbidding in competitive situations, considering appraisal risks
Consider speaking with Lynn Kelly for mortgage advice: [email protected], 778-839-9363
If you stuck and piecemealed your business together? Let's get you where you want to go. If you want our help to do that, book a call with Agent Tech Mastery at https://www.agenttechmastery.com/applypod it's absolutely free and possibly the best call you have ever had to change your business. Again, https://www.agenttechmastery.com/applypod
As always, I would love to hear your comments. Reach out after you watch/listen.
PS. You can find us on any of your favorite podcast apps by searching for Agent Tech Mastery.
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