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First Rate
E-Newsletter for January 2009
Dear Home Owner,
Happy New Year!!
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
- Prices Drop for Pre-sale
Condos
- Monthly Review of Interest Rate
Forecasts from the Major Banks
Market commentary & Interest
rate trends
Another rate drop (by 1/2%) is
expect on January 20 when the Bank of Canada (BoC) reviews their
benchmark interest rate. The interest rates on variable
rate mortgages vary widely from Prime + 0.80% to Prime + 1.5% so be
sure to consult a mortgage broker for the best rates. On a 5
year fixed rate, most lenders have bunched at the 4.99% interest
rate range.
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.
Be sure to read my blog on the differences in variable rate mortgages.
Rates and Charts
Prime @
3.50% for MOST lenders (next announcement on January 20,
2009)
|
Term |
Nov
21
|
Nov
28
|
Dec
5
|
Dec
12
|
Dec
19
|
Dec
26
|
Today |
|
3 year
|
5.15% |
5.15%
|
5.15%
|
5.15% |
5.15% |
5.15% |
5.15% |
|
5
year |
5.79%
|
5.55% |
5.25% |
4.99% |
4.99% |
4.99% |
4.99% |
|
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
Prices Drop for Pre-sale
Condos Financing pre-sale condos can prove to be a challenge as
prices drop across the Lower Mainland. 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,
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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