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First Rate
E-Newsletter for February 2009
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.
In this
issue:
- Market commentary & interest
rate trends
- How to Get Approved for the
Highest Mortgage Amount
- 2009 Federal Budget has measures
to stimulate the housing industry
- Consider Refinancing and to
Reduce Interest Expenses
- Monthly Review of Interest Rate
Forecasts from the Major Banks
Market commentary & Interest
rate trends
The Bank of Canada (BoC) reduced
the overnight rate by 1/2 % on January 20, 2009. This brought
down the prime rate to 3.0%. The next rate review is set for
March 3 and some economists are predicting further cuts. Refer
to my blog on Jan 23, 2009.
As we've recommended in the past,
a variable rate strategy is a safe bet if your looking to lower your
housing costs. The economy is not turning around for at least
a year and inflation is almost non-existent. You can always
lock into a fixed rate if you believe rates are increasing.
On the real estate market - We
all know that the market has shifted to a bear market. However, many
of us in the mortgage business are sensing a strong pent-up demand
that is building. This is based on our long and growing list
of pre-approvals. For the past few months, many applicants who
have good jobs and savings have been sitting in the corner waiting
for the best time to purchase. Should they sense that the
bottom is near, they may quickly fuel a turnaround in the
market. As always, the bottom is not easy to
determine.
Rates and
Charts
Specials (limited time offers; OAC &
E&OE)
3 yr @
3.75% / 4 yr @
4.09% (30 day
close / not for pre-approvals)
Prime @
3.00% for MOST lenders (next announcement on March 3,
2009)
|
Term |
Dec
26
|
Jan
2
|
Jan
9
|
Jan
16
|
Jan
23
|
Jan
30
|
Today |
|
3 year
|
5.15% |
5.15%
|
5.15%
|
5.15% |
4.75% |
4.75% |
4.75% |
|
5
year |
4.99%
|
4.99% |
4.99% |
4.99% |
4.49% |
4.49% |
4.39% |
|
10
year |
6.45% |
6.45%
|
6.45% |
6.45%
|
6.45% |
6.35% |
6.35% |
Table shows
the discounted residential mortgage rates for 3, 5 and 10 yr
closed fixed rate mortgages (these are standard rates - i.e., what
most lenders are offering for prime
clients)
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
How to Get Approved for the Highest
Mortgage Amount
Learn strategies to help you
increase the amount of money you are qualified to purchase.
Click here to read more.
2009 Federal Budget has measures to
stimulate the housing industry
In a move to stimulate the
housing market, the Federal Government is implementing new rules to
help the industry. Click here to read more.
Consider Refinancing and to Reduce
Interest Expenses With interest rates dropping significantly from last
year, does it make sense to switch to a lower rate mortgage.
Click here to see how switching can save you
money.Monthly Review of Interest Rate
Forecasts from the Major Banks
Click here to learn what the major banks (CIBC, TD, RBC,
BMO ans Scotia Bank) 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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