|
First Rate A newsletter specifically designed to keep you updated on interest rate trends |
"My job is done when you know your options"
|
 |
|
Learn more about.....
Featured products: Are you looking for a good....
Let me know and I'll refer you to a trusted professional who can help you get the service/product that is right for you.
|
|
|
|
|
-
Note: if this page does not display correctly, click on First Rate - July 2004 edition(this page is optimized for MS Outlook, Yahoo mail and Hotmail)July 2004
Dear homeowner,
As a homeowner, investor or real estate professional, you rely on your mortgage professional to keep you informed about interest rate movements and trends. This newsletter is designed to do just that.
In this issue:
- Interest rate trends
- Gap between fixed rate and variable rate mortgages widens
- In the news
-
-
- Interest Rate Trends
- Interest rates continued its upward climb due to anticipated higher inflation and a stronger economy.
Prime @ 3.75%Term
May 14
May 21
May 28
June 4
June 11
June 18
June 25
3 year
4.45%
4.45%
4.55%
4.55%
4.85%
4.85%
4.85%
5 year
5.05%
5.05%
5.20%
5.20%
5.35%
5.40%
5.40%
10 year
5.80%
5.80%
6.00%
6.00%
6.20%
6.20%
6.20%
Table shows the best 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
Gap between Fixed Rate Mortgage and Variable Rate Mortgage Widens
The gap between the 5 year fixed rate and the best available variable rate mortgage has widened to 2.4%. Currently, five year mortgages are priced at 5.4%. Variable rate mortgages, on the other hand, can be obtained at 3%. On a $200,000 mortgage, the monthly payments for a fixed rate would be $1,209 as compared with $946.00 for a variable rate mortgage, resulting in savings of $263/month.
Looking at this another way, the prime rate has to steadily increase over the 5 year period to 9% (from the current 3.75%) before the variable rate mortgage becomes more expensive than the 5-yr fixed rate mortgage.
In the News (excerpts from recent press releases)
1) Mortgage Holders Win Lawsuit Against Banks (Vancouver Sun, June 17, 2004) - Have you ever prepaid your mortgage but were not allowed to take advantage of the pre-payment options to reduce your penalties? If you answered yes to this question, then you may be entitled to recover a portion of the penalty. To learn more about the suit and to register, visit www.bankclassaction.com . Click here to read the full article.
2) Oil Prices, Rates To Rise (CanWest News Service, June 17, 2004) - Central Bank Governor David Dodge warns that rates here and elsewhere will be rising to what are more normal levels from historically low levels. Click here to learn more.
3) Real Estate Not Always A Great Investment, New Survey Says (Vancouver Sun, June 22, 2004) - A recent study by Century 21 found that if you bought a home in Vancouver 10 years ago, chances are you may have lost money. In 1994, mortgage prices were high and falling in real terms, off their 1989 peak. The Vancouver market did not see a turnaround until about four years ago. So, if you bought a home four years ago, your rate of return could be approx. 50%. Click here to read more.
4) Housing Sales Surge Higher (Vancouver Sun, June 17, 2004) - Residential sales hit $2.91 Billion in May 2004, a 36% increase over May 2003. Click here to read more.
5) Bank of Canada keeps key rate at four decade low (Bloomberg, June 8) - The Bank of Canada left its benchmark lending rate at a four-decade low of 2 percent, where it's been since a cut in April, saying economic growth is rebounding as expected and inflation is rising because of oil prices. Click here to read more.
-
Please consider the information provided in this newsletter as general information. Before you do anything consult a professional.
To unsubscribe, please click reply with the subject "unsubscribe" and you will be removed from this email list.