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First Rate
E-Newsletter for November 2008
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
- New Videos Added to
BCMortgage.ca
- Prime Rates are All Over The
Map
- Reasons to Refinance Your
Mortgage
- Crossing the Mortgage Renewal
Minefield
Market commentary & Interest
rate trends
October 2008 went down as the
worst month for the economy since the Great Depression. The
free falling economy prompted the Bank of Canada, together with
other central banks, to cut their overnight rate by 1/2 percent on
October 8. On October 21, the BoC reduced its rate by
another 1/4 percent.
This is obviously good news to
existing variable rate holders who have mortgage priced below the
prime rate. For new variable rate holders, the benefits are not as
great since new variable rate mortgages are priced at 1% above the
prime rate. Despite the drop in the BoC rate, fixed interest
rates have inched up by 0.34%.
With the prospect of an economic
downturn, the expectation is that interest rates will come down
further. For variable rate holders, we continue to recommend
that you keep your rate floating.
Rates and Charts
Prime @
4.00% for MOST lenders (next announcement on December 9,
2008)
|
Term |
Sep
26
|
Oct
3
|
Oct
10
|
Oct
17
|
Oct
24
|
Oct
31
|
Today |
|
3 year
|
5.35% |
5.35%
|
5.35%
|
5.50% |
5.50% |
5.50% |
5.50% |
|
5
year |
5.45%
|
5.45% |
5.45% |
5.79% |
5.79% |
5.79% |
5.79% |
|
10
year |
6.25% |
6.25%
|
6.25% |
6.45%
|
6.45% |
6.45% |
6.45% |
-
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
New Videos Added to
BCMortgage.ca
Two new educational videos were
recently added to BCMortgage.ca - “First Time Home Buyer” Video and
“Credit Scores - What you need to know about managing your credit
scores”. Click to visit BCMortgage.ca
Video page
Prime Rates are All Over The
Map
It used to be that all the
mortgage lenders prime rates were the same. With the credit
crunch, banks and mortgage lenders have not been able to match the
Bank of Canada's rate drops. Click here to read what various lenders prime rates are
at as of October 16, 2008.
Reasons to Refinance Your
Mortgage
A
recent study by the Canadian Mortgage and Housing Corporation (CMHC)
showed that 71% of mortgage holders refinanced their mortgage prior
to the expiry of their mortgage. There are many reasons why you
should consider refinancing your mortgage. Click here to learn how you can benefit by refinancing
your mortgage.
Crossing the Mortgage Renewal
Minefield
What happens when your mortgage
is up for renewal? Should you just sign the renewal offer?
Click here to learn what is the right strategy when it
comes to renewing your 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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