What a great day! The sun is shining, birds are singing, and mortgage rates are still a bargain! Yes, we've seen the rates slowly go up these past few weeks but no one would imagine that the lowest rates in history would last forever. The best 5 year fixed rate is now 4.29% which, in my opinion, is not bad at all considering past historic rates. Most lenders are offering a variable rate at Prime plus 0.60% but we have a few lenders offering even lower. One has a variable rate at Prime plus 0.35% for their 4 year term and Prime plus 0.40 for their 5 year term. Most economists are predicting that the Prime rate will go up next year so if those of you who like "peace of mind" then the 5 year fixed rate is a good bet.
Here in the Okanagan we are seeing healthy signs of people wanting to buy and anxious to get pre-approved. A pre-approval is a good idea to not only have a rate hold at these low rates for 120 days, at no cost to you, but also gives you an idea what you can afford before you go out to buy. Please feel free to give me a call anytime at 250-762-2070(local) or 1-888-877-3535(for you out-of-towners)for a quick review of your own situation. There is no cost nor obligation to you for this service. Let my 30+ years of mortgage lending experience go to work for you and find you the best deal!
Tuesday, June 30, 2009
Thursday, May 14, 2009
WOW!! 5 YEAR FIXED RATE AT 3.54%!!!
That's right! One of our major lenders is offering a fantastic low rate of 3.54% on a 5 year fixed term mortgage. Eligible for both purchases and refinances on owner occupied and income qualified deals only. NO rentals, stated income, pre-approvals, secondary homes and transfers. Call us for more details today!
Tuesday, April 7, 2009
Mortgage Rates at an All-Time Low!
The 5 year closed rate for a few lenders is now below 4.00%!!! For those thinking of purchasing, now is a great time, as home prices have also decreased and I’m sure there are some bargains to be found out there!
While no one can predict the very bottom of the market (both for interest rates and for home prices) we do know that mortgage rates today are at an all-time low, so those thinking of purchasing or refinancing are encouraged to do so soon!
While no one can predict the very bottom of the market (both for interest rates and for home prices) we do know that mortgage rates today are at an all-time low, so those thinking of purchasing or refinancing are encouraged to do so soon!
Wednesday, March 11, 2009
Is This the Right Time to Re-Negotiate Your Mortgage?
Are you currently locked-in with your mortgage?
With today's low interest rates, more and more consumers are questioning whether or not they should consider paying the penalty on their remaining mortgage term and locking-in at a lower rate. Depending on the penalty your bank will charge you on your current mortgage, it may very well be a sound decision to pay the penalty and obtain a better rate.
Most lenders charge the greater of a 3 months interest penalty, or Interest Rate Differential (IRD). The only way to know for sure what the penalty will be, is to contact your current lender directly and request this information. This is the first step in determining if it is a good idea to re-negotiate. The second step is simply to give us a call. We will calculate new mortgage scenarios for you (ie - fixed rate versus variable rate) in order to assist you with which option works best for you.
Whichever term or option you choose, we will discuss with you what your savings will be, and help you make the right decision. This is a free service we offer - there is no obligation to you!
With today's low interest rates, more and more consumers are questioning whether or not they should consider paying the penalty on their remaining mortgage term and locking-in at a lower rate. Depending on the penalty your bank will charge you on your current mortgage, it may very well be a sound decision to pay the penalty and obtain a better rate.
Most lenders charge the greater of a 3 months interest penalty, or Interest Rate Differential (IRD). The only way to know for sure what the penalty will be, is to contact your current lender directly and request this information. This is the first step in determining if it is a good idea to re-negotiate. The second step is simply to give us a call. We will calculate new mortgage scenarios for you (ie - fixed rate versus variable rate) in order to assist you with which option works best for you.
Whichever term or option you choose, we will discuss with you what your savings will be, and help you make the right decision. This is a free service we offer - there is no obligation to you!
Wednesday, January 14, 2009
What's in Store for 2009?
This is a recent article found in the Jan./Feb. 2009 Mortgage Journal magazine where the Senior Economist-CIBC World Markets Inc., Benjamin Tal, had this to say about the current housing market in Canada:
"House prices in Canada will continue to ease in the coming months. But the triggers that led to a freefall in Canadian real estate markets in the early 1990's and today in U.S. markets don't exist. Recently, the Canadian real estate market moved from a confident seller's market to a more muted balanced market, and by early '09, will turn, for the first time since 1995, to a buyer's market. When measured against income, the Canadian real estate market has overshot, but just a five to seven percent drop in prices from peak levels should bring equilibrium back, which is a fraction of the twenty-five percent overshooting seen in the U.S. by mid 2006.
At it's core, the U.S. meltdown is a subprime story. Eliminate subprime from the U.S. housing market, and instead of the most severe house price meltdown since the Great Depression, you get a trivial moderate cyclical slowing--something along the lines of what we are currently experiencing in Canada."
"House prices in Canada will continue to ease in the coming months. But the triggers that led to a freefall in Canadian real estate markets in the early 1990's and today in U.S. markets don't exist. Recently, the Canadian real estate market moved from a confident seller's market to a more muted balanced market, and by early '09, will turn, for the first time since 1995, to a buyer's market. When measured against income, the Canadian real estate market has overshot, but just a five to seven percent drop in prices from peak levels should bring equilibrium back, which is a fraction of the twenty-five percent overshooting seen in the U.S. by mid 2006.
At it's core, the U.S. meltdown is a subprime story. Eliminate subprime from the U.S. housing market, and instead of the most severe house price meltdown since the Great Depression, you get a trivial moderate cyclical slowing--something along the lines of what we are currently experiencing in Canada."
A Good Start to a New Year with Lower 5 Year Fixed Rate!!!
We just received confirmation from one of our many lenders for a special reduced 5 year mortgage rate. Here are the details:
" Effective Wednesday, January 14, 2009 Special 5 year fixed mortgage rate special of 4.49% This offer is not open to pre-approvals. **Only available for NEW business involving a purchase or refinance (no transfer/switch deals). Available on single and multi-tiered mortgages. The maximum rate hold for a new purchase is 90 days. The maximum rate hold for refinance is 60 days. Income must be confirmed (no waiving of income). Minimum Beacon score 680. Maximum GDS/TDS is 32/42. "
Give us a call today toll free at 1-888-877-3535 and get yourself approved at a great rate!
" Effective Wednesday, January 14, 2009 Special 5 year fixed mortgage rate special of 4.49% This offer is not open to pre-approvals. **Only available for NEW business involving a purchase or refinance (no transfer/switch deals). Available on single and multi-tiered mortgages. The maximum rate hold for a new purchase is 90 days. The maximum rate hold for refinance is 60 days. Income must be confirmed (no waiving of income). Minimum Beacon score 680. Maximum GDS/TDS is 32/42. "
Give us a call today toll free at 1-888-877-3535 and get yourself approved at a great rate!
Thursday, November 20, 2008
CAAMP: Canadians Confront Housing Market with Caution and Confidence
The following is the press release from the Canadian Association of Accredited Mortgage Professionals annual Fall report on consumer perceptions and choices.
November 18, 2008 (Toronto, ON) - Residential mortgage consumers remain remarkably positive as they weather the financial storm, according to a report released today by the Canadian Association of Accredited Mortgage Professionals (CAAMP). Attitudes towards local conditions have shifted only slightly with 38 per cent of Canadians believing now is a good time to purchase and 32 per cent believing it is a bad time. Mortgage arrears remain low and steady at .28 per cent and an overwhelming 84 per cent of home owners are satisfied with their mortgages. The information was gathered by Maritz from an online survey of over 2,000 Canadians in mid-October and analyzed in conjunction with CAAMP Chief Economist Will Dunning.
Canadians do expect housing prices to fall: 35 per cent, more than twice as many as last fall, now believe prices will drop; half of those surveyed gave a neutral answer while the number who thought prices would go up fell from 40 per cent to 20 per cent. Westerners, who have endured particularly hot housing markets, are most negative, and in British Columbia, 48 per cent of those surveyed said they expect prices to fall, far above the national average. “As we confront these challenging times, borrowers foresee changes in their local housing markets, yet remain confident in a stable Canadian mortgage system,” said Jim Murphy, AMP, President and CEO of CAAMP. “CAAMP anticipates mortgage credit growth to slow, but remain relatively strong, surpassing the $1 trillion mark by 2010.”
Despite the traumatic American mortgage fall out, Canada has managed to steer clear of deflated markets. The Canadian system is supported by low and steady interest rates, better underwriting processes, different products and normal re-sale activity levels. “Canada is a financially conservative country where consumers are able to meet the terms of their mortgages and buying decisions are based on affordability,” said Dunning. “This contributes to a solid real estate market that will not experience the same drop off we see south of the border.”
Housing equity positions are strong in Canada with a growing trend of re-financing mortgages. About one in five borrowers took out an increasing amount of cash from their mortgages, with the average draw rising 20 per cent to $41,000 compared to last year. Fifty-six per cent of respondents said they used this money, which totals $18.5 billion nationwide, for debt consolidation and repayment; 30 per cent of these funds went towards home repair and renovation.
New home buyers took advantage of alternative mortgage products - half of new mortgages taken out in the last year were for amortizations longer than the traditional 25 years, an increase of 13 per cent. Longer term amortizations now account for 16 per cent of all outstanding mortgages and six per cent are 40-year terms. The federal government has now introduced stricter regulations on insured mortgages. CAAMP’s survey found Canadians had low awareness of the new regulations; however once explained, 60 per cent supported the changes.
The “Annual State of the Residential Mortgage Market in Canada” report contains a wealth of additional industry data, including regional breakdowns of survey responses, where Canadians obtain their mortgages, the role of job creation in fuelling Canada’s housing market, and additional insight into housing forecasts in Canada and the United States. For a full copy of the report, please visit: www.caamp.org.
November 18, 2008 (Toronto, ON) - Residential mortgage consumers remain remarkably positive as they weather the financial storm, according to a report released today by the Canadian Association of Accredited Mortgage Professionals (CAAMP). Attitudes towards local conditions have shifted only slightly with 38 per cent of Canadians believing now is a good time to purchase and 32 per cent believing it is a bad time. Mortgage arrears remain low and steady at .28 per cent and an overwhelming 84 per cent of home owners are satisfied with their mortgages. The information was gathered by Maritz from an online survey of over 2,000 Canadians in mid-October and analyzed in conjunction with CAAMP Chief Economist Will Dunning.
Canadians do expect housing prices to fall: 35 per cent, more than twice as many as last fall, now believe prices will drop; half of those surveyed gave a neutral answer while the number who thought prices would go up fell from 40 per cent to 20 per cent. Westerners, who have endured particularly hot housing markets, are most negative, and in British Columbia, 48 per cent of those surveyed said they expect prices to fall, far above the national average. “As we confront these challenging times, borrowers foresee changes in their local housing markets, yet remain confident in a stable Canadian mortgage system,” said Jim Murphy, AMP, President and CEO of CAAMP. “CAAMP anticipates mortgage credit growth to slow, but remain relatively strong, surpassing the $1 trillion mark by 2010.”
Despite the traumatic American mortgage fall out, Canada has managed to steer clear of deflated markets. The Canadian system is supported by low and steady interest rates, better underwriting processes, different products and normal re-sale activity levels. “Canada is a financially conservative country where consumers are able to meet the terms of their mortgages and buying decisions are based on affordability,” said Dunning. “This contributes to a solid real estate market that will not experience the same drop off we see south of the border.”
Housing equity positions are strong in Canada with a growing trend of re-financing mortgages. About one in five borrowers took out an increasing amount of cash from their mortgages, with the average draw rising 20 per cent to $41,000 compared to last year. Fifty-six per cent of respondents said they used this money, which totals $18.5 billion nationwide, for debt consolidation and repayment; 30 per cent of these funds went towards home repair and renovation.
New home buyers took advantage of alternative mortgage products - half of new mortgages taken out in the last year were for amortizations longer than the traditional 25 years, an increase of 13 per cent. Longer term amortizations now account for 16 per cent of all outstanding mortgages and six per cent are 40-year terms. The federal government has now introduced stricter regulations on insured mortgages. CAAMP’s survey found Canadians had low awareness of the new regulations; however once explained, 60 per cent supported the changes.
The “Annual State of the Residential Mortgage Market in Canada” report contains a wealth of additional industry data, including regional breakdowns of survey responses, where Canadians obtain their mortgages, the role of job creation in fuelling Canada’s housing market, and additional insight into housing forecasts in Canada and the United States. For a full copy of the report, please visit: www.caamp.org.
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