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First Rate
E-Newsletter for December 2008
Dear Home Owner,
Happy Holidays!!
I'd like to take a moment to wish
you a wonderous holiday season. Please remember that I'm only a
phone call away (even during this hectic time of year) should you
wish to discuss your current mortgage or refinance options.
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.
In this
issue:
- Market commentary & interest
rate trends
- Variable Rate Mortgages are not
All Alike
- Monthly Review of Interest Rate
Forecasts from the Major Banks
Market commentary & Interest
rate trends
The markets are anticipating a
rate drop on December 9, when the Bank of Canada (BoC) announces
their next rate review. In the meantime, the interest rates
vary widely among lenders. On a variable rate mortgage, the
spreads over prime ranges from Prime + 0.60% to Prime + 1.5%.
On a 5 year fixed, the rates range from 5.15% (on a 30 day closing)
to 5.79% depending on your lender.
With the expect rate drop by the
BoC, the variable rate mortgage option is getting to be very
attractive. Assuming the 1/2% rate drop materializes, variable
rate mortgage holders could get to pay 4.1% interest. This is
at Prime + 0.60% which is available through a few select
lenders. With a weakening economy and practically no
inflation, there is a very low chance that interest rates will rise
next year (or even for 2010).
Rates and Charts
Prime @
4.00% for MOST lenders (next announcement on December 9,
2008)
-
|
Term |
Oct
24
|
Oct
31
|
Nov
7
|
Nov
14
|
Nov
21
|
Nov
28
|
Today |
|
3 year
|
5.50% |
5.50%
|
5.50%
|
5.50% |
5.50% |
5.15% |
5.15% |
|
5
year |
5.79%
|
5.79% |
5.79% |
5.79% |
5.79% |
5.55% |
5.25% |
|
10
year |
6.45% |
6.45%
|
6.45% |
6.45%
|
6.45% |
6.45% |
6.45% |
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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
Variable Rate Mortgages are not All
Alike Variable rate mortgages are looking attractive again so
it's worthwhile knowing what features to look for when shopping for
this type of mortgage. Click here to read more.
Monthly Review of Interest Rate
Forecasts from the Major Banks
Click here to learn what the major banks (CIBC, TD, RBC
and BMO) are forecasting for interest rates in the coming
months.
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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