Capital Direct Mortgage Brokers

Questions you should ask your mortgage broker

What is a mortgage broker?
A mortgage broker such as Capital Direct is a certified professional who seeks the best mortgage terms for our Edmonton clients by accessing a network of lenders that includes major banks, trust companies, credit unions and finance companies.

Why should I use a mortgage broker?
We provide Edmonton consumers with choice, convenience and expertise. Each mortgage applicant's needs and financial status vary significantly and a mortgage broker can approach lenders across Canada that best meet your needs.

Are you independent of the 'Big Banks' and other lenders?
Yes. An established mortgage broker like Capital Direct will have built excellent relationships with the Canada's biggest lenders, but is not directly connected to any of them.

Can your mortgage expertise save me money?
Yes. Mortgage brokers have access to numerous lending institutions and investors. They will make sure that you get the best mortgage or home equity loan possible with the best interest rate, conditions, and prepayment privileges. We also make the process much simpler for you as you won't have to deal with any financial institution yourself.

What is the interest rate?
To know exactly what you'll be paying in interest over the life of the loan, you need to know the rate.

What closing costs will be charged on this loan?
Mortgage come with fees for various services that lenders and other parties involved in the transaction provide. You need to find out what you'll be charged as early as possible.

Can I lock in the interest rate, and what will it cost me?
The mortgage interest rate may go up or down between the time you apply and the time you close. That's why you may want to lock in the rate for a specified period, rather than let the rate float until the closing. As your mortgage broker if there is any fee for locking in the rate.

Is there a prepayment penalty on this loan?
The prepayment question is important. Find out the duration of any penalty period and how the fee would be calculated.

Can you tell me about equity loans?
Your current home is valuable property that can be used as a powerful financial tool. A home equity loan from Capital Direct can put your investment to work building a sound financial future. We don't rely exclusively on credit history or income - your home equity is the key to your approval.

Housing market in Edmonton

Record breaking year in Edmonton Alberta
2006 was a banner year for Edmonton! New annual records were set in a number of major markets in Canada, including Edmonton, Alberta. Sales increased as Edmonton's economy exceeded all expectations. Edmonton is the economic heart of Alberta and a growing force in the national economy with growth driven by a variety of sectors.

Edmonton Alberta real estate sales figures
Not surprisingly then that sales in Edmonton Alberta continued strong in 2006, according to figures released by the Edmonton Real Estate Board. January 2006's combined residential sales totaled 1,325, surpassing all previous Januarys.

The prime engine behind the strong housing activity across Canada in 2005 was low interest rate. Rising interest rate is the primary reason why housing activity in 2006 is expected to moderate in Canada compared to the record levels posted last year.

The Bank of Canada continues to signal its intention to keep raising its trend-setting Bank rate, which is widely expected to rise a further one-half of a percentage point between now and spring. Industry analysts, however, don't expect the five-year conventional mortgage to rise by more than another one-half of a percentage point in 2006.

While this upward trend will likely cause housing starts and sales to decline in Canada as a whole, Edmonton has a projected growth rate of seven percent in 2006 and on-going robust growth through 2010. In addition, Edmonton's population has increased, on average, by more than 20,000 people per year in the last decade. It is possible; therefore, that the housing market in Edmonton may be less affected by rising interest rate than other areas of Alberta and Canada.