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First Rate
E-Newsletter
for August 2007
Dear Homebuyer,
Welcome to our newly redesigned
newsletter. We've revamped the newsletter to make
it more web browser friendly.
Our e-newsletter has been on
hiatus for the past few months due to database issues. If
I you've received this email by mistake, my apologies.
You can easily unsubscribe by clicking the link at the bottom
of this page and managing your subscription.
In this issue:
- Limited time offers
- Market commentary &
interest rate trends
Limited time offers
as of Aug 10,
2007
- Open Mortgage - Prime less
0.75%
- Closed variable - Prime less
0.95%
- Hi-Ratio Mortgages > $1M
@ 5.65%
- High-Ratio $500K - $999K @
5.74%
- "No Frills"
Mortgages- 5.64% (closing in 30 days - not for
pre-approvals)
Rates subject to change
without notice, certain conditions may apply, OAC, E&OE
Market commentary & Interest
rate trends
After the rapid upsurge in rates
during the month of May 2007, the 3, 5 and 10 year mortgage
rates have remained at its current levels for more than a
month and a half. The rate increase was in anticipation
of the Bank of Canada's (BoC) July 10 rate increase. At
the time, the BoC hinted that further increases may be
forthcoming given the strong Canadian economy and higher than
expected inflation rate. The BoC stated that some
"some modest further increase in the overnight rate may
be required to bring inflation back to the target over the
medium term".
The next rate announcement is
scheduled for September 5. Many analyst expects the BoC
to increase their rate. However, economists at CIBC
World Market Research propose the notion that the rate
increase could be deferred due to our high exchange rate and
the slowing down of the US economy. Only time will tell
what the BoC will do but their actions will primarily be
determined by inflations numbers which will be released by
Statistics Canada on Aug 19.
Rates and Charts
Prime @ 6.25%
(next announcement on Sept 5, 2007)
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Term
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Jun
29
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July
6
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July
13
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July
20
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Jul
27
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Aug
3
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Today
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3
year
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5.70%
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5.70%
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5.70%
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5.70%
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5.70%
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5.70%
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5.70%
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5
year
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5.79%
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5.79%
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5.79%
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5.79%
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5.79%
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5.79%
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5.79%
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10
year
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6.15%
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6.15%
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6.15%
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6.15%
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6.15%
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6.15%
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6.15%
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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
Pre-Approvals:
What You Need to Know
When searching for a home, it makes
sense to get a mortgage pre-approval and line up the necessary
documents prior to house hunting.
What is a pre-approval? Its the process of determining how
much money a prospective homebuyer will be eligible to borrow
prior to a formal application for a mortgage loan, based on
information they have provided.
With a pre-approval, youll get a good sense of how much you can
afford, and youll be assured of a particular mortgage rate for a
set period of time. With a locked-in rate, there is no
risk of interest rate increases while you are house hunting.
A mortgage broker may be able to obtain a longer pre-approval
rate hold. Another benefit of a pre-approval is that
you'll be in a much better position to negotiate with sellers.
On the other hand, a pre-approval is not a rock-solid guarantee
of financing, does not eliminate the need to make a conditional
offer, and you still must consider all closing costs.
More and more home buyers in Canada are turning to mortgage
brokers for pre-approvals and expert mortgage advice.
Purchase your
second or vacation home with zero down
Did you know that it is now
possible to purchase your second or vacation home without a
down payment?
That's right! With Genworth mortgage insurance you can now
purchase without a down payment. The home could be a second
home for yourself, a vacation property, a home for your
son or daughter who is away at university. Applicants
have to qualify under standard guidelines (that is, income
confirmation is required). The property should be
accessible, comply with minimum floor area requirements and
have potable water.
Since the mortgage is insured under Genworth's second home
programme, interest rates on this product are the best rates
available.
Relevant Links
REFERRALS ALWAYS
WELCOME....
The highest compliment I can
receive is a referral from a friend...Thank you!
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CONTACT
INFO:
Tel
(604) 506-0397
Email:
johnso@bcmortgage.ca
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