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First Rate A newsletter specifically designed to keep you updated on interest rate trends |
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UPCOMING EVENTS: June 20, 2007-Richmond
Library Please email me at johnso@bcmortgage.ca for more information.
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May 2007
Dear <First Name:78>,
As a homeowner (or prospective 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.
If you don't find value in this email, please send me a quick email so I can remove you from this email list. Thank you.
In this issue:
- Market commentary and Interest rate trends
- Genworth insures rental properties
- Mortgages for Self-Employed individuals
Market commentary & Interest rate trends
The Bank of Canada held its key policy rate steady in Apr 24. This is the bank’s seventh straight announcement since May 2006 to leave this rate constant. In its announcement, the Bank assessed inflationary risks to the Canadian economy and stated, "the upside risk to the Bank's inflation projection is that the recent strength of inflation could be more persistent than projected. The downside risk continues to come from the possibility of a more pronounced slowdown in the U.S. economy. The Bank continues to judge that the risks to its inflation projection are roughly balanced, although there is now a slight tilt to the upside."
Given the Central Bank's pronouncements, its is reasonable to say that rates will continue to stay stable for the short term.
Rates and Charts
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Prime @ 6.0% (next review on May 29, 2007)
Term
May 30
Apr 6
Apr 13
Apr 20
Apr 27
May 4
Today
3 year
5.19%
5.19%
5.24%
5.24%
5.24%
5.24%
5.24%
5 year
5.09%
5.09%
5.09%
5.24%
5.24%
5.24%
5.24%
10 year
5.55%
5.55%
5.55%
5.75%
5.75%
5.65%
5.65%
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)
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Click to view other relevant graphs
Genworth insures rental properties - it's easier now to become a landlord
Have you been dreaming of owning your own rental property but don't have much for a down payment? If you answered yes, then there is good news for you. Genworth now insures mortgages for rental properties. They will finance up to 90% of the value of the property. In the past you needed at least 25% down payment for a rental property. With Genworth's new policy, you have access to the best interest rates, standard terms and conditions and up to 40 year amortizations.
It should be noted that there are speciality lenders such as Xceed Mortgage and GE Money that have always been providing low down payment mortgages for rental properties. Xceed will finance up to 95% of the property value. GE Money will finance up to 90% of the property value.
Mortgages for Self-Employed Individuals
As self-employed individuals, we often want to put the lowest down payment (as we need the cash for our business), the lowest interest rate and the lowest mortgage payment. We also take as much advantage of write-offs to reduce our taxes. Often, tax returns do not truly reflect our income. If this is your situation, you should look at "Stated Income" programmes offered by many of our lenders. We have programmes that need as little as 5% down. You may not even be required to provide a Notice of Assessment.
Attend our upcoming seminar on how to make your mortgage tax deductible. Click here for details:
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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.