LYN HART : Associate Broker | Real Estate Sales : Blog posts labelled: mortgage rates : page 4

Mortgage Rates for Week of November 24th

Posted on November 27, 2008 by Lyn Hart

Posted in buying, First-time buyers, mortgage rates, Vancouver real estate market

Finally we are seeing the crack in the wall that has prevented the longer term rates to come down. The US Government is now investing directly in mortgage backed financing which will free up rates on mortgages. The problem has been that the actions taken thus far were not filtering down to the consumer. Similar actions taken by our government will see 5 and 10 year rates coming down. December 9^th the Bank of Canada will meet and lower rates, expect a .25% or .50% drop. Keep floating.


Term	Best	Bank Posted
1 year	4.35%	6.35%
3 year	5.15%	7.05%
5 year	5.55%	7.20%
10 year	6.45%	8.00%
25 year	6.75%	n/a

Bank Prime Rate 4.00%

Courtesy of

Laura Stein - The Mortgage Centre
Telephone: 604-657-6535 ext 222
www.mortgagecents.ca

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Mortgage Rates for Week of November 17th

Posted on November 24, 2008 by Lyn Hart

Posted in mortgage rates, real estate market, real estate market report, Vancouver real estate market

	Bank Prime Rate 4.00%
Term	Best	Bank Posted
1 year	4.49%	6.35%
3 year	5.25%	7.05%
5 year	5.69%	7.20%
10 year	6.10%	8.00%
25 year	6.75%	n/a

No real changes in interest rates this week. The Bank of Canada will meet again on December 9^th and the expectation is for a decrease in the rate. Inflation concerns are cooling all over the world and central banks are committed to lowering rates to keep things moving.

The Canadian Real Estate values are projected to drop by about 5% in the next year creating more opportunities for buyers and investors. Speculation is that this will create a healthy market as prices come back into the realm of affordable. If you are in a variable mortgage…..keep floating!

Courtesy of

Laura Stein - The Mortgage Centre
Telephone: 604-657-6535 ext 222
www.mortgagecents.ca

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Mortgage Rates for Oct 28, 2008

Posted on October 28, 2008 by Lyn Hart

Posted in buying, First-time buyers, Housing, mortgage rates, real estate market, Vancouver real estate market

October 28, 2008

Interest rates have stayed much the same this week while the stock market and the Canadian dollar have lossed ground significantly. Central Banks are still cutting rates with the US Federal Reserve expected to decrease their rate by .25% to .50%. There should be a few more decreases in the Bank of Canada rate coming in the next year.

The bond market is also pricing in a decrease in the longer term rates. Rates are low, Real Estate values are down from their highs. Investors are going to be seeing opportunity!

	Bank Prime Rate 4.00%
Term	Best	Bank Posted
1 year	4.49%	6.25%
3 year	5.25%	6.75%
5 year	5.69%	7.20%
10 year	6.10%	7.80%
25 year	6.75%	n/a

Interesting mortgage fact of the week:

Lenders who all but closed their doors when the first hints of credit crisis trouble started to show have now reversed their direction and are re-introducing their products. Specifically, most banks stopped or restricted lending on Lines of Credit applications and some variable mortgages. We are seeing the results of steps taken by the Bank of Canada to ease the lack credit available between lenders. Good signs.

Courtesy of

Laura Stein, Mortgage Specialist

Telephone: 604-657-6535 ext 222 fax: 604-530-1934
Tell her Lyn sent you!

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Ottawa Tightens Mortgage Insurance Rules

Posted on July 10, 2008 by Lyn Hart

Posted in First-time buyers, Housing, mortgage rates, real estate market, Vancouver real estate market

"...there is no evidence that the Canadian market is facing the kind of turmoil that has disrupted the United States."

The federal government said Wednesday that it is tightening the rules relating to government-guaranteed mortgages, even though there is no evidence that the Canadian market is facing the kind of turmoil that has disrupted the United States.

The new rules, set to take effect Oct. 15, are a "responsible and measured approach … to reduce the risk of a U.S.-style housing bubble developing in Canada," the Department of Finance said in a news release. However, it also said that Canadian creditors' "prudent and cautious approach" to mortgage lending, as well as sound supervision, have "allowed Canada to maintain strong and secure housing and mortgage markets."

The government said the measures will apply to new, government-backed, insured mortgages. "Canadians who already hold mortgages will not be affected," it said. The changes include:

Cutting the maximum amortization period to 35 years from 40.
Requiring a minimum down payment of five per cent, whereas loans for 100 per cent of the price are possible now.
Establishing a requirement for a consistent minimum credit score.
Introducing new loan-documentation standards.

The government acknowledged that the proportion of bank mortgages in arrears is stable at 0.27 per cent, "near the lowest levels experienced since 1990 and well below the highs of 0.65 per cent experienced in each of 1992 and 1997." And housing prices don't show evidence of speculation, the Finance Department said, because they are "in line with economic factors such as low interest rates, rising incomes and a growing population."

Mortgage insurance protects lenders when a borrower defaults by making up any shortfall needed to repay the loan if the sale of the property doesn't cover the debt. Federally regulated lenders must have mortgage insurance on loans where the buyer's down payment is less than 20 per cent of the price. The Canada Mortgage and Housing Corp. (CMHC), a Crown corporation, as well as private insurers provide mortgage insurance. The government backs CMHC and also private mortgage insurers so the private insurers can compete with CMHC.

Just over a year ago, Parliament passed a bill changing mortgage insurance to make home buying easier, and in 2006, CMHC eased the insurance rules.

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Experts Say Go With Variable!

Posted on July 7, 2008 by Lyn Hart

Posted in buying, condos, First-time buyers, houses, market, mortgage rates, real estate market, Vancouver real estate market

If the fluctuation of a variable becomes too much, there's also usually the option to lock in at any time.

Homeowners looking to renew their mortgages should resist the urge to lock in to a fixed-term mortgage in the face of rising rates if they can stomach the more nerve-wracking ride of a variable mortgage, experts say.

The prospect of a mortgage that rises and falls with prime rate changes may cause some unease, especially following the recent announcement by the Bank of Canada not to cut interest rates and the subsequent hike in mortgage rates by several of the country's biggest banks. But experts say variable rates may still be worth the trouble because they will save more in the long run. Many people who opt for fixed mortgages do so for the security of knowing what their payments will be every month, and may be spread too thin financially to afford much more. But variable mortgages often offer more flexibility, and have more pre-payment options for those wishing to pay their mortgages off faster.

"If it becomes important to pay off the mortgage faster, they can lose a little bit of those pre-payment options if they do fix in for a longer period of time," said Mark Olkowski, regional manager at Invis, one of Canada's largest mortgage brokers, noting that a fixed mortgage may allow for a 15 per cent pre-payment option, while variables are usually around 20 per cent or higher. If the fluctuation of a variable becomes too much, there's also usually the option to lock in at any time.

"Studies have shown that in general, the variable rate will cost you less, but there may be times, if rates go up fairly quickly for example, that you're going to be kicking yourself for not having locked-in," said Adrian Mastracci, president of KCM Wealth Management in Vancouver.

Mastracci suggests assessing the risk of your budget and income to help you decide which kind of mortgage to pick. Most economists are expecting prime to go up over the next 12 to 18 months, but some warn against basing too much of your decision on where interest rates may go in the future. Peter Veselinovich, vice-president of banking and mortgage operations at Investors Group, says individuals have to think of mortgages in broader terms than just a focus on where rates are at on any given day. Above all, Mastracci said, borrowers should focus on getting a mortgage that can be paid off as quickly as possible.

Courtesy of The Real Estate Weekly, THE source for Real Estate information, with 16 publications delivered to over 500,000 homes and Real Estate offices throughout the Lower Mainland each week.

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Mortgage Rates Down...Time to Start Shopping!

Posted on April 22, 2008 by Lyn Hart

Posted in buying, mortgage rates

Press Release from the Bank of Canada - April 22, 2008

OTTAWA – The Bank of Canada today announced that it is lowering its target for the overnight rate by one-half of a percentage point to 3 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 3 1/4 per cent.

The Bank projects that the Canadian economy will grow by 1.4 per cent this year, 2.4 per cent in 2009, and 3.3 per cent in 2010. Consistent with this growth profile, the economy moves into excess supply in the second quarter of 2008, and spare capacity continues to increase through early next year. However, a gradual recovery in the U.S. economy, a return to more normal credit conditions, and accommodative monetary policy should generate above-potential growth and bring the economy back into balance around mid-2010.

The Bank's next scheduled date for announcing the overnight rate target is 10 June 2008.

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Associate Broker | Real Estate Sales

Mortgage Rates for Week of November 24th

Mortgage Rates for Week of November 17th

Mortgage Rates for Oct 28, 2008

Ottawa Tightens Mortgage Insurance Rules

Experts Say Go With Variable!

Mortgage Rates Down...Time to Start Shopping!

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