March Newsletter: "Shopping for a Mortgage"
Welcome to the March edition of the Canadian Mortgage Insider newsletter, your trusted source for mortgage-related information.
Welcome to the March edition themed "Shopping for a Mortgage." I'm Allen Ehlert, here to guide you through the often complex journey of securing the right mortgage. This month, let’s explore why it's critical to shop around for your mortgage, looking beyond just the lowest rates to understand the full scope of what you’re signing up for. Mortgages come with various costs and terms that can impact your financial health over time.
Additionally, I'll discuss why establishing a relationship with a dedicated, licensed mortgage agent should be your first step in the real estate process. Choosing an agent with a robust online presence is vital; it reflects their commitment to your education and showcases their expertise and professionalism.
Remember, your mortgage is likely the largest financial decision you'll make—taking the time to thoroughly understand the market and working with a professional who prioritizes your needs is essential.
Let’s get into it!
Bank of Canada March Rate Decision
In its latest announcement, the Bank of Canada has reduced its target overnight interest rate to 2.75%, with the corresponding Bank Rate now at 3.00% and the deposit rate set at 2.70%. This strategic decision reflects the bank's proactive approach to managing an economy that's currently robust yet facing significant external pressures.
Discover what this ‘Trump-adjusted’ rate decision means for the Canadian economy, real estate, and mortgages.
Mortgages: You Better Shop Around
When shopping for a mortgage, or any loan for that matter, it is important to think like a bank.
When securing a mortgage, most people don’t realize they’re stepping into a sophisticated business game. Banks are experts at maximizing profits. Unless you understand their strategies, you might end up paying more than you need to.
Ever wondered why your loyalty to one financial institution doesn’t always pay off? Or why shopping around for a mortgage isn’t just a smart idea—it’s an absolute necessity? In this guide, I’ll dive into the hidden tactics banks use to keep you locked in, the financial traps of complacency, and how you can flip the script to take control of your mortgage journey.
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What’s Your Best Rate?
When Canadians start shopping for a mortgage, one of the first questions they often ask is, “What’s your best rate?” It’s a natural question—after all, interest rates directly affect monthly payments and the overall cost of a home loan. However, focusing solely on the interest rate can lead to disappointment and costly mistakes. The reality is that mortgages are about much more than the rate. The best mortgage for you balances cost, flexibility, and your personal financial situation.
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Getting a Mortgage Agent
Purchasing a home is one of the biggest financial decisions Canadians make, whether it’s your first property, an investment, or a new place to call home. Yet, many start their journey by looking at listings or visiting open houses before knowing what mortgage they qualify for. To avoid disappointment and discover possibilities, your priority should be securing a mortgage agent—one who’s knowledgeable, trustworthy, and committed to your long-term success.
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Mortgage Agent’s Online Presence
Finding a mortgage agent with a strong online presence is important for several reasons, especially in today’s digital world where clients often begin their search for services online. A strong online presence can be an indicator of a mortgage agent’s credibility, expertise, and client-centred approach
Many top mortgage agents use their online platforms to share valuable content, such as blog posts, videos, or guides on mortgage trends, financial tips, or home-buying advice. This commitment to education shows that they value client knowledge and empowerment, which is essential when navigating complex mortgage decisions. If an agent provides regular insights online, it demonstrates that they are engaged, knowledgeable, and committed to staying updated with industry trends.
Allen Ehlert is a licensed mortgage agent specializing in real estate finance, financial strategy, underwriting, and investing. He provides independent consulting for companies and governments, including the Ontario Real Estate Association, Deloitte, the City of Toronto, Enbridge, and the Ministry of Finance.
Allen Ehlert is part of Mortgage Outlet. Mortgage Outlet is an independent boutique mortgage brokerage providing concierge financial services to its clients. Mortgage Outlet does over one billion dollars of mortgage underwriting each year. Mortgage Outlet agents are frequently relied on by the media (BNN, CP24, Financial Post, etc..) to provide on-camera professional insight.
Allen Ehlert, Mortgage Agent Level 1
Mortgage Outlet Inc., License # 12628