Sesh Sandhi Mortgage Broker

New measures for First Time Home buyers!

The 5-year Canadian bond is considered the safest Canadian investment with a 5-year term

Because of its risk-free status it’s often used as a benchmark for other interest rates in Canada.

Fixed mortgage rates are based indirectly on government of Canada bond yields.

That’s why the most popular mortgage term in Canada (the 5-year fixed) closely follows the 5-year bond yield.

The number one factor influencing demand for 5-year bonds is inflation.

High inflation drives down the value of bonds and drives up their yields, and vice versa.

Discounted 5-year fixed rates are typically 150+ basis points above the 5-year yield.

This “spread,” as it’s called, can vary anywhere from under 100 to over 200 in times of financial stress.

Now that you understand the logic behind the relationship between bond yields and the 5 yr mortgage rate - you understand why economists and the Bank of Canada watch closely any movements on the yield chart to predict ( not always accurately ) what will happen next.

Now back to the chart above

Look at the 2 blue arrows , one on the left and one at the extreme right

The one on the left shows you the 5yr bond yield on March 01 2023 and the on the right is the yield as of today Feb 14 2024 at 1700 EST

March 01 2023 saw the yield at 3.69%

And today’s closing yield rate was 3.699% at the closing bell

What does that mean ?

For one, news outlets exaggerate a lot and don’t show you the full picture of what’s really happening

They also choose to show only part of whole picture

What do i mean by that ..

Simple

When you hear that bonds are rising, you need to start asking … but rising compared to what?

If we look at the 12 months comparison that i showed you above, there is no change at all

Now when you look at the yield rate on Dec 20, 2023 which was at 3.18% , it’s normal to see a big jump from 3.18% to 3.69%

What’s next ?

As usual, expect fluctuations in the rate market on a weekly basis, that’s completely normal.
For you to have less anxiety and more peace of mind, i advise that you schedule a call with me so that i can walk you through your options.
437 637 0584

The common types of fraud we come across almost every week are:

- fake paystud

- fake IDs

- fake employment letters

- edited bank statements

- redacted bank statements or paystubs

Remember that banks and other financial institutions have

1. Very advanced tools to detect and prevent fraud like this

2. Share information among all other banks and lenders so these applicants can get blacklisted for life

As lending gets tougher we have seen the rise, as expected , of scams and fraud like this in hope of borrowing hundreds of thousands of dollars that would eventually never get repaid.

Let me discourage you and save you unnecessary headaches down the road.

As a professional, my job is to help you understand the ins and outs of our financial system which has more safety nets like every before and ready to catch fraudsters trying to game the system.

So as a word of caution, if you think that you can't get approved and want to find shortcuts to bypass the system of checks and balances ... let me save you time..there are no shortcuts!

That's it

There are rules and guidelines and we all have to abide to these rules

There are other ways ( other than cheating) to help you qualify for a mortgage the right and ethical way

Reach out to me in the DM or on my cell 437-637-5084 and i will work with you to figure out how to get you to your financial goals.

The Bank of Canada Governor, Tiff Macklem is now more and more confident that we will experience a rebound in the housing market by mid 2024 as he proceeds with his plan of cutting rates

Sure, will be slowly at first so as not to create an uptick in inflation but this first set of rate cuts will definitely bring a jolt to a housing market that has been brought to a halt over the last 18 months

is currently advising all our clients, and we'll do the same for you here, Schedule a consult with him at the earliest to review your mortgage approval capacity and get yourself ready to act fast when rate cuts start but before this sends housing prices soaring again

The last thing you want is to find yourself outpriced and outside of your approval matrix as the market will get extremely competitive

Call Sesh at 437-637-0584 to schedule your consult today!

Time to break free 🚀

Your hope of becoming a proud home owner has been stuck in park forever 🏡

I will show you how today we will shift into high gear with my expertise and watch me get you approved within 24 hours.

Let's hit the road to homeownership today! 🚗💨

Canada's economy showed resilience with a 1.2% growth in the last quarter of 2023, bouncing back from a third-quarter contraction. 📈💼 The figures suggest a boost from robust consumer spending in the US, outpacing the Bank of Canada's projections. 💪💸 Despite potential revisions, the data hints at an economy avoiding prolonged contraction. Stay tuned for updates on Feb. 29!

Attention Homebuyers and HomeOwners!

Are you Considering a Private Mortgage?

Beware of the challenges in Canada's alternative mortgage market.

As the pandemic-driven housing demand wanes, private lenders, especially Mortgage Investment Companies (MICs), face increasing defaults amid rising living costs.

Over 90% of forced home sales in Greater Toronto involve mortgages from private lenders.

Regulatory disparities highlight potential risks, with private lenders facing fewer regulations compared to major banks.

With interest rates on the rise, it's crucial to be informed and avoid potential pitfalls.

Don't get trapped in the private mortgage nightmare!

Reach out to me for expert advice and explore safer alternatives.

Your financial future matters, and I'm here to help you navigate this very tricky and uncertain landscape.

Let me break this down for you

A Preapproval is a preliminary verification that your income, debts , credit fit a certain criteria that will please the lender once you find a house that should also meet the criteria for financing

More on the property side in another post

Now once you got the preapproval , doesnt mean that all is well and you don’t have to pay attention to those fundamentals anymore

What it means is that you have the lender’s permission to go shopping

And if you find a house within the 120 days window of the preapproval validity then there will be a promise to hold a rate that was reserved for you initially when the preapproval was locked

But what people seem to be unaware of is that once 30 days have passed since the initial preapproval was given, the credit report is already outdated and will need to be pulled again once you are ready to move forward with a house you want to buy

Now what has happened many times, is that certain events take place between the initial preapproval has been obtained and then it’s finally time to get a final approval from the lender to sign off on the mortgage approval

Things like:

A tax judgement
Major collections
An undisclosed bankruptcy
A consumer proposal that was filed after the preapproval date
A car that has been repossessed with tens of thousands owed on the loan
Loss of a job
Loss of both jobs
Change of jobs
Death of one applicant
A separation

The list goes on…

Each of these items listed above can cause an immediate cancellation of the mortgage request.. Irrespective whether there was a preapproval in place or not

It’s as if the preapproval never existed

So as much as i am myself a strong advocate of getting a preapproval in place i want you to understand that it doesn’t guarantee anything until the lender gives its final stamp of approval that the mortgage is clear to be funded and sends the funds to the lawyer for you to get the keys to the house.

If you have any doubts..even the tiniest whether you have a strong chance of getting approved for your current mortgage don’t hesitate and contact me so i can have a look at your finances

No strings attached!

I often get asked by my clients about the difference between a preapproval and a mortgage prequalification. Both have their importance at different stages of the mortgage process, Here's how I define both.....

Pre-Qualification:

Quick and Easy: It's a swift process.
Limited Info: Gives a general idea of what you might qualify for.
Soft Credit Check: No impact on your credit score.

Pre-Approval:

More Detailed: Requires thorough information.
Rate Quote: Lender provides an interest rate, valid for 120 days.
Credit Check: Could be a soft or hard check; check with your lender.

To see which one applies to your own situation, please reach out to me in the DM or on my cell, and we can discuss further.

As expected , the Bank of Canada is keeping the interest rate at 5.25%

This means that it is time to start considering rate cuts soon but also sending a signal that the Governor and his team have their eyes on the inflation target.

The last thing they want is to start cutting rates too early and send the real estate market in a frenzy and causing inflation to shoot back up again.

We'll see over the next week or so how the market is reacting to today's announcement and what opportunities will open up for you if you're in the market to either buy or refinance your current mortgage.

Stay tuned!

Are you ready for tomorrow's Bank of Canada Rate Announcement?

This will be the first one of 2024 and highly anticipated by the real estate community

Its no more about whether there will be a rate hike or not

We've crossed this point a long time ago

and the consensus right now is not about the fear of a rate increase but rather on the subtle signal that the Governor will give regarding the timing of upcoming rate cuts

Its been rumored that the first batch of rate cuts will begin in April 2024 but we'll break down the BoC's commentary tomorrow after the event and bring you some updates.

Stay tuned!

P.S if you have any purchase or refinance applications in process and you need my help to look at different options to protect you from any losses please feel free to text me and i'll be happy to look into it for you.

The consensus right now across all economists is that there will be no rate hike this Wednesday by Macklem. But we can expect the tone to be cautious in line with the recent inflation numbers ( which according to us aren't that scary, especially when you drill down and look at the month to month net impact)

According to Morningstar's survey, people believe that there might be a 59% chance of a 0.25% drop in interest rates in Canada by March 2024, 57% chance of a 0.75% drop by June 2024 and
a 71% chance of a 1.50% drop by December 2024.

Stay tuned for more updates on Wednesday morning.

🏡✨ New Year, New Financial Beginnings! 🚀🔍 Time for your FREE Mortgage Check-Up 🔍🚀

Are you ready to make 2024 the year you take control of your finances and build a stronger foundation for your future?

It's time for our exclusive Mortgage Check-Up, where we dive deep into your finances to ensure you're on the right track!

🤔 Overwhelmed by mounting debts?

Uncertain about your current mortgage position?

Struggling to balance the financial puzzle of life?

You’re not alone, and the beginning of the year is the perfect time to address these concerns head-on.

😟 Imagine the relief of shedding unnecessary financial burdens, freeing up cash every month, and putting you in the driver's seat for 2024.

Don't let the weight of debt hold you back from achieving your dreams and goals that you set on January 1st.

Our Mortgage Check-Up is your compass to financial freedom!

🗺️ We meticulously analyze your debts, income, and mortgage options to provide personalized recommendations.

Whether it's repositioning debts or optimizing your mortgage, we tailor strategies to fit YOUR unique situation.

📞 Ready to take the first step toward a financially empowered 2024? 🌟

I am Sesh Sandhi and i will be your dedicated Mortgage CheckUp Advisor

Call me NOW to schedule your Mortgage Check-Up!

📲 Let's work together to design a plan that not only puts money back in your pocket but also sets you on the path to financial success.

Because I sincerely believe that you deserve it!

Don't wait!

Your financial well-being is my top priority.

Act now, and let's make 2024 your best one yet!

💪🏡

🏠 Your Path to Mortgage Renewal Clarity with Sesh Sandhi 🌐

Ready to renew?

or maybe just thinking about it ?

Our team breaks down the 2024 renewal process to make it stress free for you.

Now you can make decisions confidently for a mortgage that suits your needs. 📈💼

And if you're not sure of the next steps to take, don't hesitate and reach out to us, Sesh will be happy to walk you through step by step on what exactly to do to save the most amount of money when renewing your mortgage.

Breaking

The Bank of Canada just announced that the prime interest rate will remain at its present level of ... %

The economy has shown some positive signs of recovery and the bond markets have registered a reversal from its october peak

This presents lots of opportunity for you if you're looking at getting approved for a mortgage right now 

We expect more lenders to start dropping their fixed rates very soon

If you would like a complimentary review of your mortgage options let me know in the comments below and I'll set up a call to discuss ASAP

Happy Diwali!

BOC Maintains the rate, is this a sign for better time to come........we will see.!

Tomorrow is the day........again,

Announcement from the Bank of Canada!

Are we getting another rate hike?

Or we going to stay the same?

📈 🏠 ↕️ ↔️.........

Did the banks say no?

There are other options out there, with rates at an all-time high, get options and the results you need!
Get in touch for no obligation advice!

Is it coming close to the time for you to renew or need to refinance your home?

It may be a bit scary with the way the markets are looking, but just don't settle on what your current lender is saying to you!

There is nothing wrong with getting a second opinion, because there are other options available which may not seem like much but can save you money in the long run.

Get in touch for no obligation advice, may save you a few dollars!

Are you facing the possibility of positioning yourself into private funding to close your home?

Private mortgages can be a useful financing option in certain situations, but they require careful consideration and due diligence to mitigate risks and ensure a successful outcome for both parties involved.

A second opinion doesn't hurt to see where you sit before committing to something you don't fully understand.

Get in touch for advise with no obligation.

Bank of Canada Maintains on its rates.

Slow decline in rates, get in touch for option on your mortgage.

Bank of Canada maintains policy rate, continues quantitative tightening The Bank of Canada today held its target for the overnight rate at 4½%, with the Bank Rate at 4¾% and the deposit rate at 4½%. The Bank is also continuing its policy of quantitative tightening.

Amendments made for foreign investors......

The latest in mortgage news: Feds amend foreign buyer ban - Mortgage Rates & Mortgage Broker News in Canada The Government of Canada has unveiled four amendments to its foreign buyer ban less than three months after the legislation took effect.

Things are slowly on the down turn,

- First time home buyers
- Income properties
- Debt consolidation
- Refinance

There are solutions for any situation you find yourself in.

Reach out for some friendly advice.

Canadian Mortgage Rates Pull Back Ahead of Spring Market - Better Dwelling Will Canada’s real estate market correction hit pause with an influx of cheap credit? CMHC data shows that 5-year conventional mortgage rates fell in February. Not huge, but the second consecutive month since the most aggressive climb in a generation. With credit costs plummeting even faster in Ma...

Good 2 minute read.

Changes ahead to the emergencymeasuresin regards to Canadian Mortgages.

Mortgage rates may rise as Bank of Canada ends emergency pandemic program The Bank of Canada is ending one of its emergency measures to stimulate the COVID-19 economy, leading to speculation that the era of record-low mortgage rates could be ending, too.

Things don't seem to be slowing down.

Got questions in regards to qualifying for your mortgage?
Get in touch,
We get you approved.

Canadian home prices rise in September as housing market firms, according to Teranet data Canadian home prices posted across-the-board monthly gains in September, led by the Ottawa-Gatineau and Quebec City markets

Will this market be hitting a wall soon?

CMHC still stands firm on their forecast.

CMHC stands by forecast for sharp price drop in Canada - BNN Bloomberg Canada’s federal housing agency is sticking to its pessimistic forecast for the future of the country’s housing market, citing “tremendous” risks from the COVID-19 pandemic.

If your in the market for a new home and have Questions, reach out, lets find out your situation and get you in the right direction to home ownership.
First time home buyers, bruised credit, we can get it done!

Millennials eager to jump into housing market amid low rates: Survey - BNN Bloomberg Lower interest rates have become a motivating factor for young Canadians to get into housing market.

Everything is on the rise......but will it last?

Housing Market Soars Above Pre-Pandemic Levels. But Will it Last? - Mortgage Rates & Mortgage Broker News in Canada The unlikely rebound of Canada's real estate market continues, with home sales surging to 20% higher than pre-pandemic levels.