London Unexpected twists as homeowners navigate lending rates Share A majority of Canadians will renew their mortgages over the next year-and-a-half. CTV News asked more than 50 mortgage brokers across Canada how to get the best mortgage deal . This is what we found.
A Bank of Canada decision on whether to adjust the interest rate is expected Wednesday. It will come as a growing number of homeowners find themselves in unfamiliar territory — paying their mortgage each month with nothing to show for it. London, Ont.
homeowner Nicole Prtenjaca finds herself in such a situation. She and her husband recently put an addition on their home, and at the same time had to refinance their variable rate mortgage. That added to the principal.
It wasn’t long before they found out the $2,300 per month they were forking out wasn’t paying down the mortgage at all. The information you need to know, sent directly to you: Download the CTV News App “The bank actually told me that you’re not even covering the interest. I was shocked to say the least,” Prtenjaca explained.
“Then in order to then cover [our] interest and principal, we had to increase by almost a thousand dollars,” she said. It’s called a trigger rate — when the mortgage payments are no longer sufficient to pay down the principal. Homeowner Nicole Prtenjaca, seen on June 4, 2024, recently renewed the mortgage of her London, Ont.
home. (Bryan Bicknell/CTV News London) Mortgage broker Mike Hattim of Dominion Lending .