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Tel: (403) 229.3390  Email: admin@mortgageconnection.ca

A Mortgage is more than an Interest Rate.

Mortgage Connection is not trying to sell you a mortgage. A finance consultant might sound like a strange concept, but here at Mortgage Connection we think this is exactly what is needed in the marketplace.  We will sit down with you and take the time to look at your entire financial picture.  We want to educate you on the myriad of financing options available and how to use them to effectively manage debt.  Only then can you decide which mortgage represents TRUE value for you.   With our professionalism, experience and guidance we help YOU decide what best suits YOUR needs.

Today’s Prime Rate:


Bank of Canada’s
next meeting date:

December 2, 2015


Economic News

More Changes with Default insurance premiums

More changes are coming to CMHC (the largest mortgage default insurer in Canada), along with the two private insurers(Genworth and Canada Guaranty).  As of June 1, 2015, we will see an increase to the default insurance premium for mortgage loans with less than 10% down.  The increase will see the current premium of 3.15% increase to 3.60%.



The Mortgage Wire

Interview on BNN about looking for a Mortgage

Joe Jacobs was interviewed on BNN about dropping rates and how to ensure you are looking for more than just a low rate when deciding on a mortgage.

Click here to see the interview

Private Insurers Go Their Own Way

Some good news from Canada's two other mortgage insurers.  They will not follow CMHC with product changes.

Read More Here

The Improvement Mortgage

One of the best mortgage options out there, is the use of a purchase or refinance plus improvement loan.   Essentially, these programs allow you to renovate or customize a property and obtain financing based on the as complete value.  This is a huge opportunity for buyers to get the home they want or for existing home owners to take on a renovation project.  With Government sanctioned limitations on equity takes out in the past couple of years, the plus improvement loan is a real winner.  For more information on this and how Mortgage Connection can help you with it, please give us a call 403.229.3390.

Rates Drop (Quietly)

The reality of rising rates has come to a stop.  The exact opposite is happening.  Fixed rates have continued to fall from their recent peak in the summer.  5 year fixed money is creeping closer to the all-time lows that were present in spring 2013.  With another RRSP season upon us, lenders will be flush with cash and we should see a continuation of cheaper money.  On the variable side, discounts off Prime have increased and the BoC has once again kept the overnight rate unchanged.

Budgets, Taxes and Falling Rates

An increase in closing costs:

With the Alberta provincial budget announced, there are some major changes to land titles registration fees.  In short, the fees associated with buying and selling real estate in the province is about to see a major increase.  Closing costs are still relatively inexpensive compared to other provinces with transfer taxes, but the changes are a big jump and come into effect July 1st, 2015.   The increase is somewhere between 4-6 times current levels depending on price point and mortgage amount.  For example, a 500,000 dollar purchase with 400,000 dollar mortgage will see registration fees move from 290 dollars, to 1230 dollars.

These increases will be avoided by closing a mortgage or purchase prior to July 1st.  However, the deadline may create registration backlog, so if you can close earlier than the end of June, that may be a capital idea.

You can read more on the changes here:


CMHC and others increase as well:

Fee increases are not just for provincial budgets though, as the default mortgage insurers are once again raising the premium for buyers with less than 10% down.  Currently the fee at CMHC, Genworth and Canada Guaranty is 3.15% for 5-9.99% down.  Effective June 1st, the premium will be increased to 3.60%.  The increase is only for this segment and although not a huge dollar increase from a payment standpoint-percentage wise it is a big jump, especially considering the premiums already experienced a hefty increase a year ago.


CMHC Premium increase: news release click here


First Time buyer?  The window you have been hoping for:

A downward Alberta and Canadian economy is not all bad news and we are seeing an opportunity and frankly a perfect storm for the first time buyer. With rates at new record lows (5 year fixed money is well on its way to 2.50%), a cooling housing market-with fewer transactions and increased inventory means a potential buyer is able to shop and negotiate.  There is an opportunity to get into home ownership at an overall cost that is less than a year ago. So, if you or someone you know, is looking to get in the market, be prepared and connect with Mortgage Connection to be pre-approved prior to your search. The right home, needs the right mortgage for it to be a smart choice. Also, if you were a first time buyer in 2014, do not forget about your tax credit-see more here: first time homebuyer

What about me?:

Low rates are not just for buyers.  There is a real opportunity to look to refinance into record-low priced mortgages.  However, dropping rates can mean increased payout penalties on your existing mortgage.  So, before you jump the gun at a new low rate, let us crunch some numbers to show your TRUE potential savings. The banks and lenders are in the game to make as much interest off you as possible, Mortgage Connection wants to ensure they make as little as possible off of you!

As always, we are happy to review your plans and needs and look forward to you checking in with us for a mortgage check-up.


Your team at Mortgage Connection



Tis the Season-What about 2015?



The past 12 months has been a wild market ride, low rates, increased demand and rising prices in the housing market, sure kept us busy (but we are never too busy to help your referrals). As 2014 draws to a close, we want to thank you, our valued clients, for another great year.  As always, we feel very blessed to be your trusted advisor with your biggest investment-your home.  Part of the ongoing commitment at Mortgage Connection is to give back to the communities in which we serve.  We are happy to launch our 5th Annual Charity Campaign over the Christmas and holiday season.  How it works is that MCI donates 3000 dollars each to five deserving organizations, as nominated by our clients.  We do this "on behalf of the clients of Mortgage Connection" To date this campaign has contributed 60,000 dollars.  So, here is your chance to nominate a deserving cause.  Simply reply to this email and let us know where you would like Mortgage Connection to help.

Here is a list of organizations that have received the 3000 dollar donation over the past 4 years:

Foundation for Prader Willi Research, Guide Dogs for the Blind, Alberta Association of Community Living, Calgary Women's Emergency Shelter, Hull Services, Right to Play, The Mustard Seed, The Poppy Fund, Seva Canada, Children's Cottage, The Salvation Army, Water School, KidSport, Inn from the Cold, Veterans Food Bank, Alberta Children's Hospital, Southern Alberta Flood Relief, Alberta Cancer Foundation.

If you are interested in other areas in which Mortgage Connection is serving the community on an ongoing basis please follow this link: MCI In Your Community


Housing and the Markets:

So what is to come in 2015?  It looks like it will be a year of uncertainty. Most forecasts see modest growth across the board, but many markets remain flat-with increases fuelled by major centres.  Is the Canadian housing over-inflated?  The generalization of the market as a whole misses some key points of interest.  There certainly are pockets in Canada, especially in the major centres that could see a correction.  The same old story of the over condoization in Toronto and Vancouver seems to be a growing concern.  However, Calgary and Edmonton might be joining this party.   Edmonton experienced a steady decline is starts, but after a record in 2013, there is still some absorption of units that needs to happen.  Calgary experienced a 70 per cent increase in multi-family starts in 2014-70 per cent!  With strong demand and net-migration into Alberta at over 60,000, most units are being absorbed, but with falling commodity prices and a weak dollar that helps manufacturing in the east-the pull of the West should subside in 2015 and the gap economic growth gap between the West and East should narrow.  In short, a worker in Ontario will be less inclined to pack up and head West.  Alberta, is still in good shape, but not the beacon of light that it has been for the past several years.

This is not doom and gloom for the Calgary and Alberta markets though.  Projects in oil production could be put on hold and we will not see much of this reaction until the 2nd quarter of 2015.  If commodity prices remain low, or continue to fall, Alberta will no doubt be hurt and in turn the real estate market will react.  Less projects, less jobs, less net-migration, less demand for housing.  At this point, the most likely scenario is a drop in sales, but not a huge price drop.  We have already seen the market in Calgary become more balanced and we expect this to continue in 2015.  So, time to be cautious-sure, time to scream the sky is falling-no, not yet. A bit of a slowdown is good news for buyers. A bit more inventory and less demand should make for a more favorable buying experience.  There shouldn't be the need to be dealing in a multiple offer situations and over list price sales. The housing demand is still very strong and should continue, but the rush of 2014 is over.



The Bank of Canada has certainly changed their verbiage the last few rate announcements and indications are to see rates rise in late 2015.  However, with the markets crashing, a real concern in the Eurozone-China, India and Japan in recession and dropping rates and commodity prices and countries where currency and GDP strongly depend on this (see Canada and Australia)-the world does not look ready to have rates rise anytime soon.  The one nation that looks to again be leading the way is the US.  However, this is a bit misleading.  With precious metals tanking, the US dollar and long term US treasury bonds are where investors are going.   However, sustained US growth with the global economy on the decline is not likely.


So, is 2015 a time to panic?  No, not yet. There likely are some real opportunities in the markets and real estate.  However, now is the time to ensure your house is in order. There are record low mortgage rates and if you have other debts a consolidation is likely a capital idea.  If you are concerned of rates rising (at some point they will), or have a mortgage renewing in the next 12-24 months, a hedge strategy securing today's low rates is worth looking into.  We encourage a mortgage review in early 2015 to make sure your mortgage plan is still best suited for your needs and goals.


Thank you again for a wonderful 2014 and all the best this Christmas and Holiday Season from your team at Mortgage Connection.


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Mortgage Connection Contact Information

Mortgage Connection Inc

1417 9th Avenue SE,

Calgary AB

T2G 0T4

Tel: (403) 229.3390
Fax: (403) 398.9445
Toll-Free: (877) 669.3390