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.

The Fianacial storm continues?

One of the great things about blogs is you can reflect back on previous directions to see how accurate you have been. A month ago we talked about the financial crises and potential impact, 30 days later we still are not sure if the bleeding has stopped. The stock market has continued it's decline and the Canadian housing market has declined as well in sales volume. Most people would see a lot of negative information in these events and indeed this is not good news. That being said, there are some positives to look at. Prime rate and mortgage interest rates should be trending much lower, which is going to lower payments for everyone. If you are looking to buy home, they are now on sale along with a lot of stock's in the markets. when crises does hit this is when you need to choose your perspective, to see the opportunities.

How the Banks Change?

Well we are in the beginning of a financial storm. We have seen some wild ups and downs in the stock market. This has lead to the Canadian banks changing there polices and mortgage options on almost a daily basis. The biggest change has been on the variable mortgages which used to be based on prime or a prime- system. they are now all on a prime plus rate which is not in the best for the consumer. We are also seeing the rates on fixed rate mortgages about half a percent higher then they should be. If you are currently on a variable rate mortgage, stick with it. For all our new clients, we will be working harder then ever to make sure the right product is available for you.

Mortgages In A State of Change?

Yes, at this time we are in a very different mortgage market in Canada then we were six months ago. The current and recent downturn in the financial markets have changed the discounting that the banks are doing on all mortgage products. We were getting discounts on variable rate mortgages at -.90% below prime to now Prime. The fixed rates are also on the higher side as the banks are getting a 2% bonus on what it costs them to loan the money out at. For the Canadian consumer this means we will need to make sure more then ever that they have the right mortgage products to ride out this period of instability.