Realty Bytes- Conversations on Real Estate and Lifestyle

Why is my neighbours kid GETTING A BETTER MORTGAGE RATE than me?

Episode Summary

In this episode of "Realty Bytes Conversations on Real Estate and Lifestyle," host Evelyn Lopes delves into the perplexing world of mortgage rates and lending policies. With many listeners wondering why their neighbor's kid is getting a better mortgage rate. Evelyn invites special guest Corina Murphy, a mortgage broker from Premiere Mortgage Centre, to shed light on the situation. Evelyn sets the stage by describing a scenario where listeners, despite having excellent credit, a secure job, and a hefty downpayment, find out that their neighbor's kid was able to secure a mortgage with a low downpayment and a better interest rate. This revelation sparks curiosity and prompts the question, "What's going on here?" Corina Murphy, joins the podcast to unravel the intricacies of the mortgage landscape. She explains the impact of the B20 Guidelines for residential mortgage underwriting, the infamous stress test, and other changes in lending standards. Corina helps demystify the complex world of mortgage rates, addressing pressing questions such as how these changes affect individuals and what steps can be taken to navigate them. With Corina's expertise, listeners can gain a comprehensive understanding of the factors influencing mortgage rates and the implications for their own financial situations. This episode serves as a valuable resource for anyone seeking mortgage enlightenment in an ever-evolving financial landscape. Tune into this episode of "Realty Bytes Conversations on Real Estate and Lifestyle" to gain insights and knowledge from Corina Murphy, mortgage broker, and empower yourself to make informed decisions regarding mortgages and lending standards.

Episode Notes

• Why is my neighbours kid getting a better mortgage rate than me? I have a strong downpayment, good credit and income- it doesn’t make sense? In this episode find out what factors play into the interest rate you receive
• Introduction of B20 Guidelines by OSFI in 2018 and its impact on the mortgage industry.
• Explanation of the three mortgage categories: insured, insurable, and uninsurable.
• Impact of the B20 guidelines' stress test on uninsured mortgages.
• Average rates for the three mortgage categories for a 5-year term in todays marketplace.
• Explanation of risk-based pricing and the impact on insurable mortgage rates.
• Role and benefits of Monoline lenders in Canada.
• Comparison of payments for insured, insurable, and uninsurable mortgages using a $700,000 purchase example.
• Importance of consulting with a mortgage professional for individual case assessment.
• Explanation of higher rates for uninsurable mortgages due to increased risk and other factors.
• Options when securing a mortgage rate
• Overview of the mortgage stress test and debate over its continued relevance.
• Discussion on the other types of mortgages and services offered by the podcast guests.

For more information you can check out or BLOG at https://www.realtybytes.ca/blog

Contact information:
Corina Murphy | Mortgage Broker | Team Lead
Premier Mortgage Centre
416-884-1428
corina@premiermortgage.ca

Evelyn Lopes | Realtor | Team Leader
The Evelyn Lopes Realty Team | iPro Realty Brokerage
905-965-5902
evelyn@evelynlopes.com