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First Rate
E-Newsletter for
February 2008
Dear Home Owner,
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
Be sure to attend our upcoming
home buyer seminars in Vancouver and Richmond.
Click here
to view our list of upcoming seminars.
In this issue:
- Market commentary &
interest rate trends
- With Rates Dropping, Should
You Consider Switching To A Variable Rate Mortgage?
- Purchase Your Investment
Property with No Money Down
- Obtain a Tax Refund On Your
Home Purchase Using Your RRSPs
- BCMortgage.ca Selected
Finalist for the CMP Canadian Mortgage Awards
Market commentary & Interest
rate trends
As expected, the Bank of Canada (BOC)
reduced the overnight interest rate by 1/4% on Jan 22. The
bank cited the weakening financial markets and the decline in
the US residential housing sector as reasons for reducing the
overnight rate.
Many economists expect more cuts
to come. TD Economics Department released a report
saying that they expect the BOC to cut rates by another 1/2 %
on March 4 and another 1/4 percent on April 22.
There is no doubt now that the best
strategy is a variable rate strategy. Anyone purchasing or
refinancing should seriously look into taking a variable rate
mortgage. The savings can be significant. If you are
really intent on locking-in, you can always lock-in when rates
are at its lowest. Even for someone who has already a
locked-in mortgage, there could still be a benefit to switching
to a variable rate mortgage even if you have to pay a penalty.
Your mortgage broker should able to provide you with an analysis
to determine whether this will benefit you.
Rates and Charts
Prime @ 5.75%
for some lenders (next announcement on Mar 04, 2008)
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Term
|
Dec
21
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Dec
28
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Jan
4
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Jan
11
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Jan
18
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Jan
25
|
Today
|
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3
year
|
6.10%
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6.10%
|
6.10%
|
6.10%
|
6.10%
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6.10%
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6.10%
|
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5
year
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5.99%
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5.99%
|
5.99%
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5.99%
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5.99%
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5.99%
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5.89%
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10
year
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6.15%
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6.15%
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6.15%
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6.30%
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6.30%
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6.30%
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6.30%
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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
With Rates Dropping, Should You
Consider Switching To A Variable Rate Mortgage?
Six months ago, nobody would have
expected that interest rates would come down the way they are
dropping right now. At that time, our economy was
booming and nobody had heard of the "sub-prime"
crisis. With this new economic environment, does it make
sense to re-think your mortgage strategy? Click here
to learn more.
Purchase Your Investment
Property with No Money Down
Real estate gurus have long been
espousing the concept of using "Other People's
Money" or OPM for your investment property
purchase. Now, it is possible. Click here
to learn more
.
Obtain a Tax Refund On Your Home
Purchase Using Your RRSPs
With RRSP season upon us, we
need to think about using the Federal Government's Home
Buyer's Plan to our advantage. If you're in the market
to purchase a home and you qualify under the plan, you
should consider beefing up your RRSPs so you can use it for
a down payment on your home purchase. Click here
to learn more.
BCMortgage.ca Selected
Finalist for the CMP Canadian Mortgage Awards
We are pleased and
honored to be selected as a finalist for the CMP
Canadian Mortgage Awards under the category MGIC
Award for Best Internet Presence. Click here
to learn more.
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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 he doesn't have the
right product, he will point you in the right direction.
4) No pressure, hype or mind games
- only honest advice.
Relevant Links
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