RATE BULLETIN! 5yr Fixed @ 3.64%! / Variable @ 1.85% (Prime -.40%)

90 Day Rate-Hold available. Call John now for more information!

(604) 710-1500

Three Changes to Mortgage Rules!

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:

1. 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
2. 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
3. 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!

More people are using Mortgage Brokers!

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?

REVISED RATE BULLETIN!

AS OF TODAY:  VARIABLE RATE @ 1.95% (Prime -.30%)

Call John @ (604) 710-1500!

RATE BULLETIN! 5yr Fixed Rate @ 3.79% / 5yr Variable @ 2.00%

SMART PLANNING NOW WILL SAVE YOU $$$

If you’re currently in a Variable Rate mortgage and are considering converting to a Fixed product… STOP! I may be able to:

1. Pay out your penalty.
2. Get you a brand new 5 yr+ Product. (If you have 2-3 years left on your mortgage, do you really want to renew your mortgage when rates could potentially be a lot higher in a few years?)
3. Get an interest rate that is much lower than the conversion rate within your current mortgage; saving you thousands.
   

The time to ask these pertinent questions is right now.  We are seeing some of the lowest rates in Canadian mortgage history.  Why not take advantage of what many are calling the “bottom” of interest rates?  I can help you plan your long-term goals while taking advantage of these savings.  It’s smart-planning and free to boot!  Call now!

A Cut to Fixed Rates

Posted fixed-rate mortgages at TD Bank, CIBC, Scotiabank, Bank of Montreal and Royal Bank were cut last week, reflecting lower rates in the bond market.

Bank of Montreal was the first to announce its cuts last Wednesday while Scotiabank waited until Thursday afternoon, the last among the big banks. Laurentian Bank also lowered posted rates.

The largest percentage cuts were at Scotiabank and CIBC; however, these cuts kept all the lenders at close to the same rates. Across the board, five-year fixed rates were at 5.59 per cent and two-year fixed rates dropped to between 3.75 per cent and 3.95 per cent . Scotiabank and BMO also offered a five-year fixed closed special of 4.29 per cent.

Overall, when comparing the lowest ten-year fixed closed rate, BMO and TD have rates of 6.7 per cent, whereas CIBC is slightly higher at 6.80 per cent. Variable closed mortgage rates did not change.

When speaking about the ‘Big 5′ lowering their rates…  there are some things to keep in mind.   Above and beyond the banks lowest rates, there are promotional rates that are available to consumers.  These lower rates might be available on a 30-day ‘Quick-close’ product OR available only to select brokers who have exceeded a certain quota in mortgage volume.  Fortunately, I’m in a position to discount past a lot of advertised rates.  Call me to discuss your deals today!

Fixed Rates on the move!

It’s been a crazy couple days in the bond market.  Here’s some additional info to chew on:  The bond yields have taken another huge hike today.   At last check, the bond yield is up to 2.86%.  That is a jump of 22 basis points today and 44 basis points in the last two days.  The Spread is down to 1.13% based on that update.  The banks fixed-rate products are largely dependent on what is happening in the bond market.  In light of this, some of them have already raised their 5-year rate by 35 BPS.

Are we in for rate increases?  What’s the best decision to make in light of this recent buzz?  Let’s talk about it!  Each person’s situation is different so please feel free to give me a shout.