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Karin Hoehn
Works at The Gibbard Group- Verico
Attended Capilano University
Lives in Lower Mainland
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Karin Hoehn

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Fixed rates are nudging up again this week.  With most banks a 5 year fixed has gone from 2.59% to 2.89% within the past several weeks.
Now is the time to get locked in to a pre approved mortgage rate before they go any higher.
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Karin Hoehn

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The Dangers of chasing a low mortgage rate
Posted on August 19, 2015 by Karin Hoehn

BCBusiness webarchive July 8, 2015

The appeal of a low mortgage rate can often hide the not-so-attractive penalties and restrictions that come with it.

With the era of historically low interest rates lasting far longer than most people ever predicted, it’s hard to believe that Canadian homeowners once paid rates as high as 20 per cent at their peak in 1981. Whether they’re first-time buyers or those moving from one home to another, people are still scrambling to get the lowest rate they can.

However, there’s more to finding the right mortgage than chasing the rates.
The marketplace is more and more competitive, and the focus has become all about the lowest rate. But the lowest rate is not always the best option for the borrower.

While ads for extremely low rates might grab your attention, it’s crucial to pore over the fine print. Not all mortgages are created equal. People need to take into account several factors, including the loan’s terms, portability, prepayment options and penalties.

“Porting” a mortgage involves transferring the terms from one property to another, allowing you to maintain your interest rate so you don’t incur any penalties to break the contract.

People should be looking at portability of the mortgage,  “They may say, ‘We’re happy in this home, but we have one child and in two or three years we may have another child or we may have to bring our aging parents into the home and care for them. Our three-bedroom rancher that has suited us just fine may start to look a little small and we may need a four-bedroom house with a full basement. Let’s take that mortgage with a decent rate and transfer it onto the new house down the street.’ Then when you read the fine print of the so-called lowest-rate special, maybe you can’t move it.”

With interest rates at record lows, it hasn’t been uncommon for Canadians to consider breaking their existing mortgage in favour of locking in at a lower rate. Other circumstances can prompt a change of plans, whether it’s divorce, downsizing, job loss or other financial situation. Whatever the reason, you need to consider whether the mortgage with the rock-bottom interest rate is worth it if you end up facing a steep penalty.

Mortgage penalties are calculated either as three months’ interest or the interest rate differential, whichever is greater. Where things can get complicated is with the latter and when banks use the posted rate rather than your rate to do the calculation. Instead of using the current rate that most closely matches your remaining term (in other words, the discounted rate that would be available to new borrowers), the lender uses the posted rate to its advantage, and your penalty goes up.

If you had to pay that mortgage out, you really have to look at the penalties on low-rate mortgages because they can be horrendous. A lot of people don’t take this into account, but life happens. Sometimes we’re not prepared for the changes we need to make, and that’s when a lot of the mortgage terms start having an impact. Clients need to know what it’s going to cost to get out of the mortgage because the penalties can be absolutely huge. That should be a factor in decision-making when it comes to looking for a mortgage.

There’s no one-size-fits-all mortgage, but there are lots of competitive options out there.
With a mortgage approval, you may be offered various insurance policies. Be sure to carefully review all the details before signing on.

It’s important to make sure you take the time to understand the type of policy being offered, whether it be a mortgage protection insurance or a life policy.  You do not have to take the mortgage protection policy your lender offers you and you are free to shop around for a suitable policy. Your lender cannot refuse you a mortgage just because you don’t accept the policy they recommend.

Homeowners’ insurance is pretty much compulsory with any mortgage lender; once you’ve chosen the property, your mortgage is approved, and you’ve removed subjects, you should see an insurance agent to purchase your home insurance. Your insurance agent will help you make an informed decision on your options and ensure that you have the proper coverage to protect you and your investment.
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Karin Hoehn

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Take a look at the first of it's kind, Consumers Guide published by the Mortgage Broker's Assoc of B.C. Your's truly has an advertisement on page 9
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Karin Hoehn changed her profile photo.

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Time for an update!  Tamara Roberts owner/photographer at:
102 - 814 west 15th St. North Vancouver.BC · 604-990-4301
Does great work if you are looking for new shots.
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Sincere and trustworthy, reliable and straightforward
you can find me at me at  I have been brokering residential mortgages for over 15 years in the lower mainland. 
Bragging rights
I don't like to brag :)
  • Capilano University
    Business Major
  • Salmon Arm Senior High
Basic Information
Looking for
Mobile Mortgage Broker and Realtor
Mortgage solutions and strategies to meet the needs of any borrower and/or property
  • The Gibbard Group- Verico
    Sr. Mortgage Consultant, present
  • Invis
    Mortgage Broker, 2003 - 2014
  • The Mortgage Group TMG
    Mortgage Broker, 1998 - 2003
  • The Real Estate Guide
    Account manager, 1994 - 1998
  • The NorthShore News
    Advertising Account Representative, 1989 - 1992
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Lower Mainland
Hope, BC - Ucluelet, BC - Westbank, BC - Salmon Arm, BC - Vernon BC - Penticton, bc - Edmonton, AB - Dallas, TX - North Vancouver, BC - White Rock, BC - Richmond, BC - Vancouver, BC - Hong Kong, China - Port Moody, BC - Coquitlam, BC -
The Woodopolis hardwood installer was a perfectionist, and we are very satisfied with the job and the price. We had shopped around, and they were very competitive. Our granite countertops are also beautiful. Tracy and Victor really care about their customers and their experience, and do everything possible to make the whole process go smoothly.
Public - 8 months ago
reviewed 8 months ago
As a resident close to the airport, there has been little regard for those living close by when it comes to allowing all the flight schools late evening hours to conduct their training. Chinese immigrants have high demands on these schools and from what I know, they are sending their young here to learn to fly and then return to China with a much less expensive means of getting a pilot license. Apparently it is a fraction of the cost compared to getting one's license in China. It seems that our little airport is compromising to accommodate this lucrative means of cash-flow, and may be allowing them to fly late into the evening when Pitt Meadows residents are trying to sleep. If I am wrong, then I apologize for my assumptions. However, I sure hope that what is happening tonight (almost 11:00 pm) is a rare occurrence, and it won't always seem like World War II is happening outside above my home.
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reviewed 8 months ago
3 reviews
Dr Maya has cared for our chihuahaus and most recently assisted our eldest make his transition to the "Rainbow Bridge". She came to our house, and made it as comfortable as possible for us to help our "Challupa" make his transition. We wouldn't do it any other way, and thanks to Dr. Maya for offering this most sensitive and humane assistance. Karin and Wren
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reviewed 9 months ago