Why Canadians Are Breaking Their Mortgages in 2024 (And Saving Thousands)

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Video Chapters

00:00 💡 Breaking a Mortgage for Lower Rates
00:56 📉 Variable Rate Forecast and Advice
02:18 🏠 Mortgage Structuring Options
03:55 🔄 Adjusting Mortgage Payments
06:00 🤝 Half Fixed, Half Variable Mortgage Products
09:29 💭 Considerations for Breaking a Mortgage
12:01 🧮 Penalty Calculations for Breaking a Mortgage
14:48 🔄 Lowering Mortgage Costs through Restructuring
16:11 🏦 Options for B and Private Mortgage Holders
17:35 📊 Utilizing Lines of Credit for Mortgage Flexibility
18:59 🔄 Anomaly in Current Rate Trends
19:13 📉 Transitioning to Normal Mortgage Rates and Growing Discounts
20:11 🏦 Lenders Competing for Business
21:46 🤝 Importance of Negotiating Mortgage Renewals
23:49 💡 Strategizing Between Fixed and Variable Rates
25:56 🚀 Final Recommendations on Navigating Mortgage Decisions

The opinions expressed herein are solely that of Tom Storey, not Royal LePage or the TRREB and should not be misconstrued as advice or the basis of an agency relationship whatsoever. Please consult your professional advisor prior to taking action on any decisions relating to the matters discussed in these videos. This communication is not intended to cause or induce breach of an existing agency agreement. This is not financial advice.

[DVinCanada]

A reasonable financial advise should be don’t over spend money you don’t have. Mortgages are enough debts to handle. Keep getting refinance, or line of credit, or credit card debts is a downward spiral to hell.

[ZulfiqarAli-rffp]

This is ur one of the best videos which is not time wastage with good information. Thx

[markmussington]

Great show and Jessie seems to be a great resource

[rustyscrapper]

This is not how it was explained to me at the bank.

I was told the penalty to break the mortgage is equal to the spread un your rate and the current rate, and you save nothing to break it early. They bake it into the new mortgage and you get a lower rate with a big penalty added on and basically the same payment.

HOWEVER!!! If you SELL your house the penalty is only 3 months interest. So to get out of the high mortgage without a penalty you have to sell the house and end the mortgage. Buy another house with a new mortgage and lower rate. Then you get a lower payment.

This incentive to trade up your house will set the market on fire, the incentive will be better house lower price and everyone will be flipping into a different house to get out of their ass mortgages.

[sandhugo]

Good information. I like when a learned man talks with clarity . Here we have 2 of them ! Thanks

[infosofi]

Great episode Tom, one of the best shows/guests you had, thanks for all the valuable info Jesse!

[philippickles]

I've only let my mortgage go to full term only once. Breaking and blending is one way to go.. Scotia had me on a 50/50 ratio and it was interesting to see how the variable would change when the BOC would increase rates.. overall the variable paid more principle off.. this was in the early to mid 2000s

[Waterlily]

Today I subscribed because of this video you made 🙏

[alexhakimi]

Fed cut 0.50 today, hopefully Bank of Canada will follow on OCT

[ZulfiqarAli-rffp]

U brought very good point 50/50 split which 90% people don’t know

[SbnAmd]

Very informative! Thank you for the content!

[notpastranapastrana]

bought mine at 5.09 5 yr fixed this early 2024...first time home buyer..what should I do?

[typicalc]

Our bank only does 5 yr variable closed. So now its time to look at other options.

[addh]

Fix it to sleep then if it does down a lot break and re fix it . Variable is not good bc what goes down will go up.

[majucamex]

There is not golden rule, I was variable for 5 years at 2.11, then went variable again for 2.29 for another 5 years at the renewal I didn’t want to go again for variable as the gap with the fixed was not more than.40 then I went for fixed 5 years more at 2.79 then the interest stated to skyrocket and I was safe…. Don’t know how the interest will be at the renewal but for sure won’t be to high and if they do the damage won’t hurt as the remanente to pay is not a lot. Well this just to illustrate there are risks everywhere which we have to learn to deal with

[munishkumar]

Can I have contact information for Jesse to discuss my mortgage

[asns]

More information on the laddering strategy would be helpful. You had me up until wrapping the $100k into a new mortgage segment. Some elaboration on this part of the process would be helpful. If the 100k is part of a LOC that is unsecured, why would a lender incorporate it into a mortgage segment?

[koksc]

If you break your current term would your bank need to re qualify you?

[dsaryan]

If you're 60% through paying your house, is it better to get a large line of credit to pay the rest of the outstanding amount or continue with a mortgage product?

[bestofpkl]

My renewal is coming in two months, can I take variable at renewal date and convert it into fixed in next 8-10 months? Can I move from variable to fixed in less than one year?