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First Rate
E-Newsletter for March 2008
Dear
[fname],
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
- Where are house prices in
Vancouver / BC headed in 2008?
- Forecasts from the Big 5 Banks
Indicate a Downward Trend
- What Features To Look For in a
Variable Rate Mortgage
Market commentary & Interest
rate trends
As expected, the Bank of Canada
(BOC) reduced the overnight interest rate by 1/2% on March 4.
This brings the prime rate down to 5.25% (from 5.75%). The Bank
cited the expected slowdown in the US economy, particularly the
housing and credit markets. In the Bank's press release on March 4,
the BOC stated that "further monetary stimulus is likely to be
required in the near term". More rate cuts are still possible.
TD Canada Trust's economic report for Mar 7 forecasts another 1/2%
drop in the prime rate in April.
With no expected upward pressure
on interest rates, mortgage professionals believe that a variable
rate strategy is the best route to take. Homeowners holding variable
rate mortgages will pay 4.65% (or prime less 0.60%) on their
mortgage as compared with the 5 year mortgage of 5.89%.
To put this in perspective, a borrower with a mortgage of $300,000
will save $242 per month or $2,914 per year on a variable rate
mortgage.
Rates and Charts
Prime @
5.25% for some lenders (next announcement on Apr 22,
2008)
-
|
Term |
Jan
25
|
Feb
1
|
Feb
8
|
Feb
15
|
Feb
22
|
Feb
29
|
Today |
|
3 year
|
6.10% |
6.10%
|
6.10%
|
6.05% |
6.05% |
6.05% |
6.10% |
|
5
year |
5.89%
|
5.89% |
5.89% |
5.89% |
5.89% |
5.89% |
5.89% |
|
10
year |
6.30% |
6.30%
|
6.30% |
6.30%
|
6.30% |
6.30% |
6.30% |
-
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
Where are house prices in Vancouver /
BC headed in 2008?
You may find this hard to believe
but I’m hearing that we can still expect house prices to increase in
2008. I was at the Mortgage Broker’s Association of BC Trade show
and attended the presentation of two well respected economists -
Cameron Muir of the BC Real Estate Association and Benjamin Tal of
CIBC World Markets. Mr. Muir expects house prices to continue
rising, albeit at a slower growth rate of between 7-8%, not the 20%
growth rate we are accustomed to seeing during the past few
years. Click here
to learn more.
Forecasts from the Big 5 Banks
Indicate a Downward Trend in Interest
Rates
Click on this link
to learn what the Big 5 Banks are forecasting for interest rates.
.
What Features To Look For in a
Variable Rate Mortgage
With interest rates poised to
drop over the next few months, variable rate mortgages have been
gaining popularity. For individuals looking to purchase or refinance
their mortgage, it is important to understand what features to look
for. Click here
to learn the top 3 features you need to have on your variable rate
mortgage.
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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