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First Rate
E-Newsletter for August 2008
Dear Homeowner,
If you are a homeowner, potential
homeowner or a real estate investor, you know that your mortgage is
the single largest expense you'll ever have. Keeping abreast
of interest trends, mortgage innovations and credit strategies will
help lower your mortgage costs and possibly build wealth for you and
your family.
I have a unique approach to the mortgage
business and that is, to provide my customers with the most
comprehensive information and options available so they can make the
best mortgage and home buying decision. I don't use any slick
sales techniques or negotiation strategies. It's all about
providing the right information and letting you make the decision-
My job is done when you know your
options.
Events - Home Buyer
Seminars
We are not holding first time
home buyer seminars in the Summer. We will resume our normal
schedule in September. Be sure to check out website for
upcoming sessions.
In this
issue:
- Market commentary & interest
rate trends
- Gas Prices and its Impact on the
Real Estate Market
- Monthly Review of Interest Rate
Forecasts from the Major Banks
- What is a good credit score for
a mortgage application?
- Zero Down & 40 year
Amortization Mortgages to End on October 15,
2008
Market commentary & Interest
rate trends
As you can see from the table
below, interest rates have remained constant for the past
month. It is evident that the interest rate market is on a
hiatus during the summer.
We are still recommending a
variable rate strategy for borrowers that can afford a little
fluctuation in their monthly payments. With variable rates are
4.15% versus a fixed rate of 5.65%, the savings on a $300,000
mortgage is $276 per month. For most borrowers, that's
significant savings.
Longer term forecasts by
economists at the Big 5 Banks point to the Bank of Canada keeping
variable rates at its current levels until sometime in
2009.
Rates and Charts
Prime @
4.75% for some lenders (next announcement on Sep 3,
2008)
-
|
Term |
Jun
27
|
Jul
4
|
Jul
11
|
Jul
18
|
Jun
27
|
Aug
1
|
Today |
|
3 year
|
5.50% |
5.50%
|
5.50%
|
5.50% |
5.50% |
5.50% |
5.50% |
|
5
year |
5.65%
|
5.65% |
5.65% |
5.65% |
5.65% |
5.65% |
5.65% |
|
10
year |
6.25% |
6.25%
|
6.25% |
6.25%
|
6.25% |
6.25% |
6.25% |
-
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
Gas Prices and its Impact on the Real
Estate Market
The auto, travel and tourism
industries are just a few sectors of the economy that will be
affected by higher gas prices. The impact for the real estate
industry is probably going to be felt more gradually but there is no
doubt that we will be impacted. If you're purchasing a home,
this is one trend you should not overlook. Click here to
read more.
Monthly Review of Interest Rate
Forecasts from the Major Banks
Economists from the Big 5 Banks
are still sticking to the same story, i.e., the Bank of Canada (BoC)
will be holding rates until 2009. Click here to
read more.
What is a good credit score for a
mortgage application?
What credit score should you
aspire for? Here's my thoughts on
this subject.
Zero Down & 40 year Amortization
Mortgages to End on October 15, 2008
On July 9, 2008, the Federal
Government released new rules which will phase out zero down
mortgages, 40 year amortization mortgage, setting a min. credit
score and limiting No Income Qualifier mortgages. Click here to learn
more.
Are you working with a
professional?
What exactly is a professional?
Here's my definition:
1) An expert in his field
2) Responds quickly to all emails and
phone calls
3) A person with the highest level
of integrity - Will only recommend products and services that
are in your best interest. If I do not have the right product
for you, I will point you in the right direction.
4) No pressure, hype or mind games -
only honest advice.
Relevant
Links
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