The Bank of Canada has lifted its key lending rate by 1/4 percentage point, to 0.75%. The bank said any further increases “would have to be weighed carefully against domestic and global economic developments.”
Meaning what? The BoC will now (more than likely) leave well enough alone for the foreseeable future. Although… we’ve heard that before. The next interest rate meeting is September 8th. Below is a chart of where we’ve been over the years. (Click on it for a bigger view)
Lowest rates of this beautiful day:
5yr Fixed @ 4.04%
3yr Variable @ 1.80% (Prime -.70%)
If you’re renewing, refinancing or purchasing… Call me NOW to hold these great rates!
I hope you’re enjoying a great summer so far!
Ever wondered where we stand in the grand scheme of things as far as Interest Rates are concerned?
Please enjoy the following: Historical Rate Charts – Fixed and Variable. (Please click on graphs to open in full-sized window)
(Courtesy of Firstline Mortgages – A Division of CIBC)
The new CMHC rules for self-employed (Business for self or BFS) borrowers take effect tomorrow and pose new challenges for this category of client.
First off, self-employed borrowers with more than three years in the same business who apply for a mortgage using stated income, as well as commissioned-income borrowers, are now required to provide to provide traditional proof of income (or “third party validation”) through regular income documents like financial statements, contracts and T4s.
Those who have recently become self-employed and don’t have third-party validation can still apply for a mortgage, but have to come up with a 10 per cent down payment instead of five per cent. Refinancing will also be cut to 85 per cent loan to value instead of the previous 90 per cent.
Please call to discuss.
90 Day Rate-Hold available. Call John now for more information!
(604) 710-1500
The Federal Finance Minister Jim Flaherty announced prudent changes to mortgage insurance rules intended to come into force on April 19, 2010. These changes are as follows:
- All borrowers must meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term
- The maximum amount one can withdraw in refinancing their mortgage will be reduced to 90% from the current 95% of the value of one’s home
- Non-owner occupied properties will require a minimum down payment of 20%.
There were no changes to down payment requirements or length of amortizations for owner-occupied residences.
While these changes were not dramatic, they will still effect the odd borrower who will have to come up with a little more money to buy the house they want. Although, the 80% rental rule will pose a problem to those wanting to invest in rental properties. Please feel free to call and discuss!
A growing number of Canadians are opting to use mortgage brokers instead of going to the bank branch, a recent study said.
According to Maritz Research, which conducted the study on behalf of CAAMP, the mortgage broker channel handled 23 per cent of all mortgage activity in 2008. This number was higher in Western Canada, (34 per cent in Alberta and 27 per cent in British Columbia), as well as amongst females (26 per cent), who were more likely than men (20 per cent) to deal with brokers.
“In the past, the first or only place a person would go when looking for a mortgage was to their local bank, however more and more Canadians are now seeking out the services of Mortgage Brokers to help them navigate the biggest purchase of their lives,” said study author Rob Daniel, managing director, Maritz Research Canada, to the Financial Post.
Another strong demographic for mortgage brokers was with young Canadians. In the 18 to 34 demographic brokers represented a 28 per cent share. With 53 to 54 year olds this decreased to 24 per cent, and with the 55 and older crowd it was even lower, at just 17 per cent.
It’s nice to see Canadians understand the value in the service we provide. In the US, people use brokers for everything – health, auto, home & life insurance etc. So rather than heading straight to the bank (with their 5-10 products) and accepting their ‘lowest’ rate… why not submit your application once and have all the mortgage products from over 50 lenders in Canada at your disposal? Keep this in mind: Banks always look out for themselves. As your mortgage broker, I am always fighting for your best interests. Unbiased advice at no cost to you, along with greater savings and selection make this the growing trend. Who wouldn’t want a tailor-made mortgage along with huge savings?
