|
First Rate
E-Newsletter for November
2007
Dear Home Buyer,
Happy Remembrance Day!
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.
You can learn about mortgages
through our
website, our
first time home buying seminars and monthly newsletters
and home buying CD.
Events - Home
Buyer Seminars
Be sure to attend our upcoming
home buyer seminars in Coquitlam, Vancouver and Richmond.
Click here
to view our list of upcoming seminars.
In this issue:
Market commentary & Interest
rate trends
Predicting interest rate trends
has been a big challenge for economists this year.
During the first quarter of the year, most economists were
expecting a decline in rates. However, by May and June
interest rates shot up unexpectedly by 1/2 percent due to our
strong economy and higher expected inflation rates. By
the third and fourth quarter, the pressure to raise rates had
tappered off resulting of an unexpected slowdown in the
US economy. As of now, the expectation is for rates to
stay the same, at least until the end of 2008. This is
the view expressed by many economist as well as the Bank of
Canada.
To put the interest rate movements
in perspective, the 5 year rate has risen from 5.09% in
Jan 2007 to 5.99% in November. This is slightly less
than 1%. Interest rates are still the lowest in history.
As of now, our recommendation is
to take a fixed interest rate mortgage. The longer term
rates (i.e, 7 and 10 year rates) are actually quite
attractive. If you are unsure about your mortgage
strategy, be sure to book a complimentary information session
with me to learn more about interest rate trends.
Rates and Charts
Prime @ 6.25%
(next announcement on Dec 4, 2007)
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
Firstlines Double Presidential Mortgage
Studies have shown that US
interest rates tend to come down during a presidential
election. Canadian interest rates tend to follow the same
pattern.
Because of this, Firstline, a
subsidiary of CIBC, developed a product that matures on
Nov 1, 2012. This will allow borrowers the possibility of
renewing their mortgage when rates are at their lowest - two
US presidential elections from now. Firstlines interest rate
on this product is very competitive at 6.00%.
4 Ways to Paydown Your Mortgage Quicker
1) Pay your mortgage bi-weekly or
weekly
2) Make extra payments
3) Take a longer amortization
programme and set-up an RRSP investment plan
4) Make your mortgage tax
deductible (i.e., The Smith Maneouvre)
You could choose one strategy or a
combination of the above strategies. To determine the right
strategy, be sure to consult a professional.
Click here
to read the full article.
Experian study shows that 30% of
US Consumers improved their credit score in 6 months
In a study of US consumers from
January to June 2007, it was found that 30% of US consumers
were able to increase their credit score by 50 points over a 6
month period. This shows that it is possible to bring up your
score significantly over a short period of time by making wise
credit choices.
Credit scores can influence your
ability to obtain a mortgage at favorable terms since it is a
measure of your credit risk. Your credit score will determine
what interest rate you pay on your mortgage, how much you need
as a down payment and the repayment terms of your mortgage.
Individuals with a very low credit score may not even qualify
for a mortgage.
Click here
to read the full article.
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 he doesn't have the
right product, he will point you in the right direction.
4) No pressure, hype or mind games
- only honest advice.
Relevant Links
Economic Research: TD
Economics / CIBC
World Markets
|
