In a strange twist in Canadian mortgage markets borrowers who lock into fixed mortgage rates now can secure lower interest rates than those opting for variable rates of interest.

By far the most popular mortgage in Canada is the five-year fixed mortgage. Now you can fix in at less than the riskier variable rate. Mortgages with fixed interest rates offer borrowers peace of mind. This is because the interest rates and repayments will not change over the term of the mortgage.

Interest rates on fixed mortgages are currently at their lowest levels in two years.

We Have Another Bond Yield Inversion

n May, Canada’s ten-year yields fell to 17 points below the three-month yields. A situation is known as yield curve inversion:

• Historical financial position (including, revenue cycle and profit history)
• Future profit potential
• Condition of the business and assets
• Tax consequences
• Risk and potential liabilities

Mortgage Requirements for Non-Residents

You should carefully determine the valuation of the assets or shares of TargetCo. Among the many factors in determining the purchase price, you should consider:

1. Inspection of corporate records and commercial agreementsa
2. Sellers’ status and residency requirements
3. Property searches (real and personal property)
4. Litigation searches
5. Labour and employment matters

If you already have a franchise system in a different jurisdiction, for example in the United States, you will need to have your franchise agreements and documents carefully reviewed and modified