Fixed Or Variable Rate?

We are getting this question a lot these days as the variable rate is about 1.35% lower then the current five year fixed rate. there is now a new product that allows you to have the best of both worlds. The 50/50 mortgage is exactly as it name states. you have your mortgage split into two portions, one variable and the other fixed. This gives you peace of mind as well saving you money at the same time with the variable option. The best of both worlds as they say.

Bond Rates On Mortgages

Banks Continue To Profit On Mortgages

Since my last blog, we have seen the bond yield on the 5 year rate drop in the consumers favor. The banks have not followed suit as the spread is very profitable for them at the current levels. If the bond trend continues to go lower,the banks will be very slow to pass on the savings to the consumer.

Five Year Rate Rises

Since our last blog, i was able to take some time with my family to England. We had a great trip and was an excellent experience for your kids. Well, in that time we seen the five year mortgage rate rise more then.60%. These increases are due to in my opinion to two factors. One the bond spread did rise increasing the cost of funds. The second is that everyone was refinancing their mortgage's at very low rates, which is costing the banks a lot of money. Even with charging large penalties, the banks were losing interest charges for a lot of mortgages. Rates themselves are still at very historic low levels. variable rate mortgages are currently starting at 2.65% and 3 year terms from 3.45%. Now is still one of the best times i have seen to be having a mortgage.

Mortgage Rates Rising??

The five year bond rate has been rising on the heels of the stock market rise. We have seen the five year bond rate rise from 1.89 to 2.14 over the last four weeks. There have been no changes in the rates to date and the spread is still a healthy 1.75% for the banks. It is something to note that we could be at the bottom of interest rate low for fixed rates.

Refiance Your Mortgage?

Time To Refiance Your Mortgage?

Bank Of Canada Historic Move

The bank of Canda took a new direction in the marketplace. They effectivly have said prime rate will not be changing for one year. Prime is now set at 2.25% and the BOC rate at .25%. these rates are both the lowest in the history of interrst rates in Canada. What does this mean to the mortgage world. Clients you have variable mortgages below prime are in excellent postion and will now be enjoying rates of 1.35-1.50%. We now have the lowest 5 year fixed rate at 3.75%. this has created great affordability in the marketplace for all canadians.

Intererst Rate Penalties

With mortgage rates now at historic low levels. Mortgage holders are now finding out about IRD penalties that the banks are charging. This is the loss of interest that the bank will be losing for the balance of the mortgage term that you are currently in. I would recomend that before looking at selling or refiancing, request a mortgage payout satement. This will quote your penalty and will also alow the penalty to not increase for 10-30 days depending on the lenders policy.

Canadian Mortgages Still Be Done?

The answer is yes! The canadian banks are well unded and are still doing mortgages to qualified clients. We have been hearing about the banks tighting up on the lending polices. In some cases this is true. The products that they are more strict on are the ones that were new types of mortgages. Such as self emploed, stated income, 100% fiancing. that being said there a re still hndreds of products for well qualified clients to take advantage of historic low intererst rates. Now more then ever is a great time for clients to be looking at taking advantge of the great savings.

Candian Mortgage Rates Drop To Historic Levels

We have seen the banks in Canada, finally lower the rates to help the consumer. The bank of canada reduced there rate to a historic low level of 1%, the banks did match the rate cut. Bank prime is now at 3.00%. We have also seen the fixed rates lower to record low levels! this is all very good news for the consumer. This should start helping build the confidence that everyone needs.

Prime Rate ToDrop?

We should see the prime rate drop by .50% tomorrow. Most economist's are predicting a drop by that much.I believe we could see a .75% drop and we do need the banks to match the full drop. The banks should already be lower by .25%, that they have held back already. If they do not pass on the full savings, we should see a lot of pressure from the Canadian government to pass on the savings to the consumer.

Canadian Mortgage Market In 2009

Since my last blog, we are seeing historic interst rate cuts from around the world. In the last 30 days the US has set there rate at Zero and the Bank of England now has the lowest rate since 1694! We are now in uncarted waters for prime rates and forecasting of the future. There does seem to be a concensious that rates will continue to be low and will be going even lower in Canada. This is good news for the consumer. We are now able to borrow money at historic low rates and then purchase items at discount prices. This is now a great opportunity to llok at how you can take advantage and move ahead in the new world.