Mortgages changes and commonly asked questions

Long Cheng TD Bank Mortgage Specialist

Long Cheng TD Bank Mortgage Specialist

1. Rate
In the past couple of months, voices have been heard that Bank Of Canada(BOC) will increase the prime but yet it has not happened and it will postponed. Given the current trend where the fixed term rates are quite high, it is time to shout out the variable terms. Assuming you can get a 3.55% for a five year fix, and currently TD’s 5 year variable is 2.65%, the difference between the two is 0.9%, which means that BOC has to increase the prime 3-4 times so that variable rate can catch up with the fixed rate. Surely variable rate comes with risks as it will be impacted, however, when the starting point is too low, it significantly reduces the risk simply because you are having a much better discount for most of the time. Until the variable hits the breakeven point, you are way better off. Plus, variable terms can be converted into a fixed term anytime you want at no costs, and this is beneficial to those who precisely predict the market trend and action in advance, or simply they just want peace in mind.

2. New to Canada program
As per policy, an actual PR card is not a must. As long as you have applied for PR, and you have the file number, which is generated by CIC usually 30-45 days after the application, you are considered a new immigrant and can take advantage of the program. With this regards, TD is one of the best banks that have the most flexibility. No PR card or no firm approval doesn’t shut you down, let the bank decide if you are qualified or not.

3. Oversea income
We can still support the deal with the help of oversea income, as long as associated documents are available. Typically 3 months of bank statements/3 months of paystubs, letter of employment, and local liquid assets confirmation are required, and additional documents might be required as well depending on the deal.

Overall speaking, the housing market has been a bit slow, but for those properties that have a fair price and decent quality, multiple offers are still anticipated. When in search of your dream home, know your budget and know your financial!

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