What’s The Deal? Low-rate Mortgage Offers

London Ontario Low-rate mortgage offers

I’m Andrew Young of Mortgage Wise Financial and Community Mortgage Movement.

What’s the deal with super low-rate mortgage offers?

I just want to go over a few different things before you lock yourself into something you don’t really want or something you don’t really need. What I want you to understand is what are you sacrificing to get a very low interest rate? Here are a couple things you should watch out for on low-rate mortgage offers.

Low-rate Basic Mortgages

These are low-rate mortgages that sometimes may include a reinvestment fee. A low rate basic mortgage will offer you an unbelievably low interest rate. So, what are you sacrificing with this type of mortgage? One of the main things you are giving up is your flexibility. Let’s say you were to break your mortgage after the first five years, there is generally a percentage of a penalty you will pay. So, if you break your mortgage early, you will generally have to pay a penalty (this is normally around 3%). These mortgages need to make their money somewhere! So, let’s say you have a mortgage of $400,000 that is a $12,000 penalty fee!

Reinvestment Fee

Some lenders are adding reinvestment fees into their mortgages. Some of the mortgages that we have seen here have these reinvestment fees added into their mortgage, they have a gradual decline over the five-year period, some dropping by .25% each year.  If you are 99% percent sure that you are going to stay at this property for five years it might be worth it to just wait it out, if not you should start considering other options.

What I like to do is a suitability analysis. We try not to sell rates as much as possible, I would prefer to find out what you need first before I come up with a solution.

I’m Andrew Young and that’s the deal!

What’s The Deal with Andrew Young?

January Impact Report

So what’s the deal with Andrew Young?

I’m Andrew Young and I would like to tell you a little bit more about myself and my past work experiences.


12 years ago, I started my mortgage career with Bank of Montreal as a mortgage specialist and then transitioned over to Scotiabank as a mortgage specialist. Then 7 years ago I joined mortgage wise financial as a mortgage agent, it wasn’t until almost 2 years ago that I became a mortgage broker.


As of January 1, 2018, I am happy to announce that I am now a part owner of Mortgage Wise Financial.

Not only have we added some young talent to our company, but we also have a ton of experienced brokers. We can help you out with your purchase, your mortgage refinancing, mortgage renewal, anything mortgage related from A to Z!


I would like to thank everyone in the London Ontario community for your continued support!

I would also like to announce that we have not only been nominated but also have won the Top Mortgage Brokerage for under 25 employees across Canada at the Canadian Mortgage Awards.


Thank you again for all your support and we can’t wait to see what 2018 and beyond has to offer!

Down Payment and the Next Steps

Down Payment

So, you’ve finally got the money the need to make a down payment on your house, congrats! So, what are some of the next steps in this process?


Confirm the details


To fulfill the conditions of your mortgage approval, you’ll need to document almost everything you do. This is required by all lenders to ensure that you are not borrowing against your down payment and to help protect against fraud.


Here’s what you will need:


A 3 Month History

You will need a 3-month history of any bank accounts that you have been using to get your down payment. One of the most important parts of this is that your name is linked to the account, as some printouts do not show a name. Talk to your mortgage advisor about this if you have any concerns


If You Had Large Deposits

If you had any large deposits within the last 3 months, you will need to show where they came from. An example of this might be if you sold a car, make sure to keep the bill of sale or if you transferred money into the account, make sure to bring the records.


If It Is a Gift

Gifted funds can only come from immediate family members (parents, grandparents, siblings). There must also be a signed gift letter and a bank statement from the giver to verify the funds.


If You are using money from your RRSP

If you are withdrawing under the Home Buyer’s Plan, the funds must have been in the account for 90 days.  Also make sure you budget enough time (about 30 days) to make sure your funds can be transferred out in time. You will also need to show a 3-month history of your RRSP


If You are Getting money from Outside of Canada

It is important to get the money into the country at least 30 days before funding. Some lenders might ask that the money must have been in a Canadian account for more than 90 days, so make sure to ask about this early!


Regularly Deposit Cash into Your Accounts

As stated above lenders do not like to see giant deposits into your accounts and they especially don’t want to hear that you’ve been stockpiling your money and not depositing it into a bank.


If the Down payment is coming from the sale of your existing house

It is important to provide a firm purchase and sale agreement, and the current mortgage statement. Some lenders will also ask for the real estate lawyer’s letter of disbursements, to see how the proceeds of the sale will be divided up.