Special Interview with National Bank

4 Dec

I spoke this week with Jon Bolds, Product Manager, Mortgage Solutions at National Bank, to discuss the mortgage market in Queben and Canada. It was a very informative interview, and Natty Bumppo thanks him for his availability and help with our mission to provide advice to all our users.

Mortgage Market and Interest Rate Context

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Bazzi believes that in some Canadian real estate markets, including the Toronto and Vancouver condominium markets, price growth in recent years is unsustainable in the long run. However, in Queben, he believes that real estate price growth, although high in recent years, remains relatively controlled. He maintains that the low level of mortgage rates since 2009 is one of the factors that has favored the growth of property prices. Mortgage rates are at their lowest historical level in the last 50 years. He also recalls that most economists agree that mortgage rates should not increase significantly by the end of the year.

Mortgage approach

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April, May, June and July are months characterized by an increase in the number of purchases of properties. Indeed, leases expiring, mostly on June 30, this period is ideal for tenants wishing to acquire a first property.

In this regard, www.nbc.ca has a wealth of useful information, including the various steps to purchase a first home. In addition, you will find details on National Bank’s mortgage financing solutions as well as tools to perform various simulations (borrowing capacity, calculation of mortgage payments, etc.). Note that this site is a first destination for the client wishing to obtain information before meeting a mortgage expert. In fact, the National Bank makes available to the clientele a network of Mortgage Development Directors (DDH), experts in mortgage financing, who move to the home of the clientele, even in the evening or the weekend!

Custom mortgage solutions

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According to Bazzi, banks have a duty to properly advise their clients to help them achieve their financial goals. National Bank’s approach is based on needs and preferences as well as tolerance of fluctuations in mortgage rates of its clients. Thus, the National Bank customized mortgage offers the possibility of adapting the loan for the house to reality. How? ‘Or’ What? Depending on certain information, the National Bank advisor is able to propose financing solutions that combine the characteristics of the products offered.

For example, for a customer who wants to save interest and who is comfortable with rate fluctuations, but also wants to protect himself against rate hikes on a portion of his financing, his custom mortgage could be 50% of variable rate mortgage financing and 50% of fixed rate mortgage financing for a 5 year term. In fact, the floating rate mortgage could provide interest savings, but offers no protection against rate hikes, while the fixed rate mortgage of a 5 year term provides protection against interest rate hikes. rate increases throughout the 5-year term … There are actually as many solutions as there are customers. The experts of the National Bank will find the right custom mortgage!