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First Rate
E-Newsletter for March 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
- Bank of Canada Cuts Key Rate by
Half a Percentage Point
- Monthly Review of Interest Rate
Forecasts from the Major Banks
- When Is a Condo Not a
Condo?
- Looking for a down payment on a
home? Check your RRSPs
Market commentary & Interest
rate trends
The Bank of Canada (BoC) reduced
the overnight rate by 1/2 % on March 3, 2009. This brought
down the prime rate to 2.5%. The BoC's press release stated
that the "overnight rate can be expected to remain at this level
or lower at least until there are clear
signs that excess supply in the economy is being taken up".
This seemed to point to the possibility of another rate cut by 1/4%
in April 2009.
As we've recommended in the past,
a variable rate strategy is a safe bet if your looking to lower your
housing costs. With such low interest fixed interest rates,
you're probably not going to go wrong if you were to lock-in.
I would not rush in to do this, however. If you can wait until
the summer, you could lock-in at a lower interest rates as fixed
rates are still unstable and may come down some more.
Rates and
Charts
Specials (limited time offers; OAC &
E&OE)
10 yr @
5.25% / 5 yr @
4.19% (30 day
close / not for pre-approvals)
Prime @
2.50% (next announcement on April 21, 2009)
|
Term |
Jan
30
|
Jan
2
|
Feb
6
|
Feb
13
|
Feb
20
|
Feb
27
|
Today |
|
3 year
|
4.75% |
4.75%
|
4.75%
|
4.75% |
4.75% |
4.75% |
4.75% |
|
5
year |
4.49%
|
4.49% |
4.39% |
4.39% |
4.39% |
4.39% |
4.39% |
|
10
year |
6.35% |
6.35%
|
6.35% |
6.35%
|
6.35% |
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
-
Bank of Canada Cuts Key Rate by
Half a Percentage Point
The Bank of Canada (BoC) reduced
its key interest rate by half a point today to its lowest level
ever. Learn why the BoC reduced their rate and how it affects
your mortgage.
Monthly Review of Interest Rate
Forecasts from the Major Banks
The last interest rate drop is
expected on March 3, 2009. As least, that’s what the Big 5
Canadian Banks are forecasting (for now). With the exception
of BMO, the banks are expecting a 1/2% drop in the Bank of Canada
overnight rate when the rate is reviewed on March 3, 2009.a move to
stimulate the housing market, the Federal Government is implementing
new rules to help the industry. Click here to read more.
When Is a Condo Not a
Condo?
If
you’re looking for a home you may have your eye on a particular
condominium building in your city. You should be aware,
though, that different buildings may have very different ownership
arrangements. Click here to get a rundown of the three major types of
apartment and townhome ownership interests.
Looking for a down payment on a
home? Check your RRSPs
The 2009 Federal Budget increased
the amount allowed to be withdrawn from RRSPs for your first home
purchase to $25,000. Click here to learn whether you qualify.
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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