100% Fiancing on Rental Properties

Cmhc announced a new program which will now allow investors to buy a home with no money down. If you are looking to buy real estate for rental, this is a great new program. This is a true 100% financing option. Investors will only need to pay for legal fees and property purchase tax where applicable. Longer amortization are available, up to 40 years. All of the fixed interest mortgage rates are available. If you would like to go variable interest mortgage rate, you will need to put 10% down payment. This program is available for 1-4 units.

Mortgage Rates

Fixed mortgage rates are determined by the bond market. The bond market rates are determined by the demand for bonds from the very large money institutions. The banks and mortgage lenders charge a spread that varies on a daily basis. Normally the spread between the bonds and discounted 5 year fixed rate is around 1.40. Currently the spread is around 1.80, so we could be seeing the 5 year fixed rate coming to a lower level then today.

Bank of Canada

Today, we saw the Canadian dollar slide lower due to the comments of our bank of Canada governor. How is this relevant to interest rates? My opinion the Bank of Canada is doing everything to not lower the prime rate as the US did. They are hoping to drive the dollar lower and slow down the housing market by making negative comments. My opinion we should be at a 6.00% prime rate right now with the talk of going lower. The US is still sorting out the sub prime mortgage troubles, which is going to force lower rates in the US. Watch for comments in the coming weeks before the next interest rate announcement.

Will Low Mortgage Rates Stay?

Today, we are seeing all the lenders increase the 5 year mortgage rates by .25%. At this point in time the lenders are taking advantage of the current uncertainty in the marketplace. The mortgage bonds that the lenders get their money from is still really low and we are now seeing a priemum being charged from the previously low mortgage rates. That being said we still have 5 year mortgage rates below 6% and with the new extended amortization period's, payments can be made affordable. The Bank of Canada was very cautious on their comments about the economy moving forward, this could mean lower mortgage rates in the future?

Mortgage Broker

The mortgage broker of today is geared to help the client with thier overall finanacial picture. The mortgage broker does this by going through a detailed application and asking the important question's to the client. By shopping over 400 different mortgage option's, the client is assured that they are recieveing the best option's avaliable from an independent accredited professional mortgage broker. Working with the right financial planner, real estate professional, and tax accountant, today's independent mortgage broker can help achieve their financial dreams.

Best Mortgage Rates

Today, we saw the interest rates climb .25% on a 5 year mortgage term. Historically speaking we still have the best mortgage rates avaliable. Now with longer amortization's, consumers can still benefit from low monthly payments that are offered on historcally the best mortgage rates. Consumers today have over 400 different best mortgage rate option's to choose from.

Canadian Mortgage Renewal

The Canadian Mortgage Renewal market is now under assult from the lenders in Canada. In most circumstances, your current mortgage provider will send out a renewal notice with the highest intererst rates that lender can charge you. Do not sign that canadian mortgage renewal, without first checking with an accrediated independent mortgage professional. They can shop the canadian mortgage market for you at no cost.