Do you know what a collateral mortgage is?  (you may have one and not even know it!) Banks are increasingly using this type of mortgage to facilitate other borrowing but also to protect the Bank and make it more difficult to take your mortgage business elsewhere.  Check out our blog post with links to two great articles on the pros and cons of collateral mortgages and make sure to ask your bank or mortgage broker what it means to you.

http://www.oasisrealtyottawa.com/blogs/gord_mccormick/archive/2012/05/22/collateral-mortgages-caveat-emptor.aspx 

A recent annual report from CAAMP (Canadian Association of Accredited Mortgage Professionals) says that 79% of new mortgages taken out this year were fixed rate mortgages,  This is up quite a bit over recent years where approximately 2/3rds favoured fixed over variable.  The reason is primarily due to the declining spread between fixed and variable options and may suggest homeowners believe rates are bound to increase in the foreseeable future.

Another interesting statistics quoted by the Globe and Mail show that the average residential mortage for homeowners overall during the year was 3.55% (down from 3.94%) and the average of new mortages taken out this year was only 3.26%.  One has to wonder how long the banks will let this go on but it also is consistent with the very competitive landscape in the mortgage market we have been seeing this year. (Nov 19, 2012)  See the Globe article:  http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/vast-majority-now-favour-fixed-rate-mortgages/article5416065/ 

Here we will post some thoughts on mortgages that we think should be useful for buyers, sellers and homeowners; as well as links to some articles that can be useful research.  Many are of these will be also posted on our facebook page or twitter, so feel free to follow us there also.

Gord McCormick, Broker of Record
Dawn Davey, Broker
Oasis Realty Brokerage
613-435-4692
oasisrealty@rogers.com

www.oasisrealtyottawa.com

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