The Power of a Rate Hold
A rate hold is a lenders promise to maintain a certain interest rate for
you over a specific period of time, usually 90-120 days. Dependent on
the lender, you may be able to lock in at a rate at the time of filing
your application, or during the application and approval process. This
means that if rates are expected to rise, your mortgage professional can
lock in at a lower rate before they do.
For instance, fixed
mortgage rates are closely linked to government issued bonds. Bonds
represent lenders benchmark for minimum earnings with the least amount
of risk. They charge a premium to make riskier loans to consumers.
Simply put, lenders see bonds as "safer" and mortgages as "riskier".
Lenders therefore price mortgage rates higher to deal with the added
risk. The difference between the two rates is the yield lenders require
to lend money out at greatest risk on the market.
Thank you so much for your continued support and I look forward to
working with you.
While there are other factors that do influence fixed mortgage rates,
you can see in the graph above the tightly knit relationship between
government bonds and fixed mortgage rates.
Therefore, when bonds rise you can expect fixed mortgage rates to
possibly also rise. If there is a sudden shift in the economy that
forces bonds to rise, locking in at lower rate before fixed mortgages
rates rise could save you a significant amount of money over the course
of your mortgage.
However, a rate hold is still only part of the equation as you will
still need to be fully approved by the lender for the deal to go
through. The CENTUM 15 Minute Mortgage is the most advanced
pre-qualification technology in the industry, allowing you to better
understand how much mortgage you can qualify for. This will better
assist you when looking to lock-in for a rate hold and throughout the
home buying process. Please contact me directly if you have any
questions, or visit www.centum.ca/anne_brill to complete the CENTUM 15 Minute Mortgage.
Thank you so much for your continued support and I look forward to working with you.
Centum Metrocapp Wealth Solutions Inc. Lic #12147
Thursday, November 19, 2015
Tuesday, November 3, 2015
Friday, October 16, 2015
Wednesday, September 23, 2015
Check out Anne Brill's Broker Profile in CMP's Issue 10.9!
Get to know me and check out my Broker Profile today in the
Canadian Mortgage Professional 10.9 from page 46 by clicking on
http://www.mortgagebrokernews.ca/contents/e-magazine.aspx?id=196182
Tuesday, March 24, 2015
Congrats Anne Brill and CENTUM Metrocapp Wealth Solutions at CENTUM Academy & Awards 2015!
Congrats Anne Brill and CENTUM Metrocapp Wealth Solutions
At the CENTUM Academy & Awards 2015!
Thursday, January 22, 2015
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