|
First Rate A newsletter specifically designed to keep you updated on interest rate trends |
"My job is done when you know your options"
| |
 | |
|
Attend a Home Buyer Seminar: First time home buyer seminars are held at the Roundhouse Community Centre, Renfrew CC, Trout Lake CC, Mr. Pleasant CC, East Hastings CC, Richmond Public Library, Click here for our schedule Learn more about.....
| |
|
| |
|
|
-
Note: if this page does not display correctly, click on First Rate - April 2006 edition(this page is optimized for MS Outlook, Yahoo mail and Hotmail)
This information
is provided to homeowners, realtors and investors as a complimentary
service. If you do not wish to receive this email, please
click reply with the subject "unsubscribe" and you will be removed
from this email list. Removal
is GUARANTEED.
-
April 2006
Dear Home Buyer,
As a homeowner (or prospective homeowner), investor or real estate professional, you rely on your mortgage professional to keep you informed about interest rate movements and trends. This newsletter is designed to do just that.
In this issue:
- Market commentary and Interest rate trends
- BC Property Purchase tax
- In the news
Market commentary & Interest rate trends
The Bank of Canada (BOC) increased the overnight rate by 1/4% to 3.5% on Mar 7 and another quarter percentage increase is expected on Apr 25. This will bring the prime rate to 5.75%. CIBC is expecting this to be the last increase for the year before the rates drop off in 2007.
Since Dec 2004, the BOC has increased the prime rate steadiily by 1.75%. Fixed rates have stayed relatively stable at 5.05% - 5.1% over the same period. As of today, rates are starting to move. Some major banks have brought their best 5 yr rate to 5.25%. Anyone considering purchasing to ensure that they obtain a pre-approval so the interest can be held for 120 days.
Rates and Charts
-
Prime @ 5.50% (next review on Apr 25, 2006)
Term
Feb 17
Feb 24
Mar 3
Mar 10
Mar 17
Mar 24
Mar 31
3 year
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5.00%
5 year
5.10%
5.10%
5.08%
5.08%
5.08%
5.08%
5.08%
10 year
5.50%
5.50%
5.50%
5.50%
5.50%
5.50%
5.50%
Table shows the discounted residential mortgage rates for 3, 5 and 10 yr closed fixed rate mortgages
For a longer term view, click here to see the 3, 5 & 10 year best residential rate since September 2003 (updated monthly)
-
Click to view other relevant graphs
BC Property Purchase Tax
One of the principal benefits of being a first time home buyer is the exemption from the BC's property purchase tax. The cost of this tax can be significant. For example, for at $300,000 purchase, the tax amounts to $4,000. The tax is calculated at 1% of the first $200,000 and 2% of the balance of the purchase price.
There are many rules that determine whether you are exempt. Your lawyer or notary will advise you as to whether you qualify. The main ones are as follows: (1) Your mortgage must be at least 70% or greater of the purchase price; (2) The purchase price must be no more than $325,000 (in the GVRD and Fraser Valley); (3) You must not have owned a home anywhere in the world; (4) You must have resided in BC for at least 1 year. Learn more please visit the Ministry of Provincial Revenue's website
In the News (excerpts from recent press releases)
1) House prices rise higher still (Vancouver Sun, Mar 31, 2006) - Large price increases for home BC, Alberta and Ontario are behind a national surge in real estate sales. Click here to read more.
2) Condo soft landing predicted (Van Sun, Mar 1, 2006) - Greater Vancouver's white-hot condominium market appear headed toward equilibrium, a consulting firm PricewaterhouseCoopers reported. Click here to read more.
2) Spike in housing prices raises risk of bubble (Van Sun, Apr 5, 2006)- An eye-popping 22% jump in housing prices last year is raising the risk of a real estate bubble in Vancouver. Click here to read more.
-
Please consider the information provided in this newsletter as general information. Before you do anything consult a professional.
To unsubscribe, please click reply with the subject "unsubscribe" and you will be removed from this email list.