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We deal with over 30 different lenders across Canada.

The Upside of Rate Hikes


If there's a silver lining to the recent increase in fixed rates, it's that refinancing penalties have drastically dropped.

Before rates reached their rock-bottom lows, lenders would typically charge you three months' interest to break an existing mortgage term. When rates dropped, lenders opted for the 'interest rate differential' -- the difference between the posted rate at the time your original mortgage was signed and the current posted rate.

While the complicated algorithms employed by banks and lenders made it virtually impossible to calculate the IRD yourself, they always seemed to be extraordinarily high -- approximately $15,000 for many homeowners.

Thanks to the recent rate increase, the IRD margin has shrunk, so instead of $15,000, many homeowners are now only paying between $5,000 and $8,000. Depending on your situation, that might be money well spent.

Axiom Mortgage, July 2009


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At Greenwood Estates and Mortgage Company, Mission, BC, we represent dozens of lenders and loan programs across Canada. With our experience in banking and finance we can help you find the best rates for your needs. Many years working in the banking and finance industry has given us a great network of contacts that we can use to find the best product for you. Mortgages, business loans, refinancing, credit lines and debt consolidation are our business.

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