Angry Mortgage Mortgage Rate Chaos | EP. 118
Apr 15, 2025
Sasha Fabry, a mortgage sales expert and regular contributor, dives into the chaotic state of mortgage rates influenced by political dynamics, including surprising effects from Trump. The conversation highlights misconceptions in the mortgage industry, focusing on fixed vs. variable rates and the impact of recent bond yields. Fabry and the host also tackle the need for transparency amid misleading bank narratives and critique political promises about housing. Tune in for essential strategies to navigate the turbulent mortgage landscape!
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Variable vs Fixed Mortgage Rates
- Variable mortgage rates in Canada are tied directly to the Bank of Canada rate and offer discounts off that rate.
- Fixed rates are guided by government bond yields plus bank premiums and administrative costs.
Mortgage Break Rate Myth Debunked
- The claim that 67% of five-year mortgages break before maturity is a lie with no evidence from lenders.
- Actual break rates are closer to 50% and vary with market conditions, debunking common myths.
Lock Fixed Rates Before Announcements
- Don’t wait until after Bank of Canada rate announcements to lock in fixed rates; bond yields drive fixed rates, not the Bank of Canada’s decisions.
- Consider locking in rates before volatility causes increases.