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First Rate
E-Newsletter for May 2009
Dear
John,
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
- Monthly Review of Interest Rate
Forecasts from the Major Banks
- No Frills Mortgage at
3.59%
- Bank of Canada Lowers Key Rate
by a Quarter Point
- Genworth Tightens Credit
Requirements on All Products
Market commentary & Interest
rate trends
The Bank of Canada (BoC) reduced
the overnight rate by 1/4 % on April 21, 2009. This brought
down the prime rate to 2.25%. This will definitely be the last
rate drop for the BoC. With the BoC overnight rate at 1/4%,
there is no more room to reduce interest rates further. Not
only did the BoC reduce the interest rate, they also committed to
keep the rate at that level until the second quarter of 2010 subject
to inflationary conditions.
With interest rates staying the
same for at least a year, it makes sense to stay on a variable rate
until the end of 2009. With the economy not going anywhere for
the next 12 months, it would be a pretty safe bet to keep your
mortgage on as a variable until say, January 2010. At that
point, we should re-evaluate where the economy is going because if
there is a strong rebound, interest rates could start to move up
again.
On the other hand, if you are the
type who would rather not think about interest rates, you could go
ahead and lock-in now. Fixed interest are already very low and
not likely to go down by very much in the next few months.
You'll pay a higher price - just think of it as the cost of peace of
mind peace of mind.
Rates and
Charts
Specials (limited time offers; OAC &
E&OE)
10 yr @
5.25% / 5 yr @
3.79% (30 day
close / not for pre-approvals) / @ 3.59% (no frills)
Variable at
Prime + 0.60%
Prime @
2.25% (next announcement on June 4, 2009)
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|
Term |
Mar
20
|
Mar
27
|
Apr
3
|
Apr
10
|
Apr
17
|
Apr
24
|
Today |
|
3 year
|
4.19% |
4.19%
|
4.19%
|
3.89% |
3.89% |
3.89% |
3.15% |
|
5
year |
4.19%
|
4.05% |
4.05% |
4.05% |
3.95% |
3.89% |
3.89% |
|
10
year |
5.25% |
5.25%
|
5.25% |
5.25%
|
5.25% |
5.25% |
5.25% |
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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
-
-
-
Monthly Review of Interest Rate
Forecasts from the Major Banks
On April 21, 2009, the Bank of
Canada (BoC) announced their last rate drop (see the BoC rate
announcement). This brought down the overnight rate to 1/4%
which is the lowest the BoC is able to go. In that
announcement, the Bank committed to hold the rate until “the end of
the second quarter of 2010″. Click here to read more.
No Frills Mortgage at
3.59%
MCAP recently announced it’s
latest offering. They call it the “Value Mortgage” and it has
an incredibly low rate of 3.59% for a 5 year term. Click
here to read more
Bank of Canada Lowers Key Rate by a
Quarter Point
The Bank of Canada reduced its
key interest rate by a quarter point today to its lowest level
ever. In its announcement the Bank also stated that it expects
to hold this policy rate at its current level until the end of the
second quarter of 2010, conditional on the outlook for
inflation. Click here to read more.
Genworth Tightens Credit
Requirements on All Products
On April 7, 2009, Genworth Financial advised
lenders of changes in their mortgage insurance guidelines, making it
more difficult to obtain mortgage insurance. For certain
mortgage programmes, the minimum credit score has been
increase. Debt service ratios have also been lowered.
Click
here to read more.
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
REFERRALS
ALWAYS WELCOME....
The highest compliment I
can receive is a referral to a friend...Thank
you!
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CONTACT
INFO:
Tel
(604) 506-0397
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