Posts Tagged ‘Mortgage loan’
Weekly Mortgage Newsletter – Feb 20 2012
Brad Compton - Weekly Mortgage Update - Feb 20th, 2012 This Week’s Great Low Rates! Variable: 2.80% - (prime less .20)6 mos: 2.89%1 Year: 2.89%2 Year: 2.95%3 Year: 2.89%4 Year: 2.99%5 Year: 3.19% 7 Year: 3.89% - not available for pre-approval10 Year: 4.89% - not available for pre-approvalall rates are based on approved credit and are subject to change without notice. All rates may not be available in all provinces I’m back! It has been way too long since my last rate update. Quite a bit has changed with my business since my last email. As you may or may not know, I have moved to Halifax. Not to worry, I am still offering the same great rates and level of service in Ontario...as well as Halifax. Rates have remained at historical lows over the past 6 months, with certain lenders briefly offering 5 year fixed rates at less than 3%. Longer term mortgages (7-10 yrs) are now offering rates below 4%. For the first time since I have been brokering mortgages I feel comfortable suggesting certain clients consider a longer term mortgage. The one story that has changed since my last update ...
Beware Sites Advertising “Low Mortgage Rates”
The Internet has given us unlimited access to information. As a small business owner, the Internet has also provided an affordable way to effectively market to millions of people. One of the ways some Mortgage Agents choose to market on the Internet is through lead generation sites. If you have searched for a mortgage rate on-line chances are you have visited one of these sites. They usually offer a choice of rates from several different Lenders/Brokers. This can be great for getting an idea of the best mortgage rates out there, but I caution most people when they are looking at these sites. There is much more to a mortgage than just a low rate. These sites do a good job of presenting several rate options, but they do not let the consumer know the terms and conditions associated with that rate. Mortgage rates have unfortunately turned into a commodity where lower is always perceived as better. Imagine you were shopping for a car and all the info the sites gave you was the price......wouldn't you have ...
Mortgage Rate and Housing Outlook
I recently had the opportunity to listen to an economist from Genworth Canada speak on his predictions about where mortgage rates and housing starts would be going over the next couple of years Really, there were not many surprises. By this point we all know mortgage rates only have one place to go and that is up. When we will start to see this increase is up for debate, but most "experts" agree it will be before the end of this year. Originally variable rates were predicted to start moving by July, but several bank economists have recently come out saying it will now be early fall. That is great news for those of us with variable rates. So how high will mortgage rates climb? It is hard to see the future without a crystal ball, but Genworth feels by the end of 2012 we will see prime rate around 6% and 5 year fixed rates around 7%. Keep in mind the 5 year fixed is the posted rate and most lenders discount the posted rate by ...
Why Are Fixed Mortgage Rates Rising?
Over the past week fixed mortgage rates in Canada have been on the rise. In fact, in most cases, lenders have increased their 5 year fixed rate by up to 35 basis points (.35%). What causes Mortgage Rates to increase? As I have mentioned in previous posts, Canadian mortgage rates use 5 year bond yields as a benchmark. The graph above illustrates bond yields over the last couple of weeks and as you can see, it has been a steady climb. As bond yields increase, Lenders' profits decrease. Most lenders like to keep their margins around 1.25%. In many cases deeply discounted rates were being offered at 3.69%. With a bond yield of close to 2.90% they were far from their desired margins. So where are rates going? It is hard to say. I can see the current upward trend softening and possibly seeing a slight retreat. It is important to remember that even though rates have seen a recent increase, we are still at historically low levels. Be sure to get your Pre-approvals to protect yourself from any further ...
Toronto Mortgage Rate Watch
Toronto Mortgage Rates have been falling over the past week. Why you might ask? As I have mentioned in the past, Canadian fixed mortgage rates are driven by Canadian Government Bond yields which banks use as a benchmark for setting rates.As you can see by the above chart, Canadian Bond Yields have been falling for the past two weeks or so due to unrest in Libya and the Japanese Earthquake and resulting tsunami. The unfortunate events in other parts of the world actually have a positive affect on Toronto's Mortgage Rates.You can also see I have drawn a "Resistance" line across the graph. This level has proven to be a resistance point in the past. I will watch to see if yields creep above this line in the coming weeks as a substantial cross above will be a sure indicator bond yields are on the rise again and Toronto Mortgage Rates could follow. Is your Toronto Mortgage Broker watching rates on your behalf?Thank you for visiting www.YourLowMortgage.ca Related articlesMore Canadian banks cut mortgage rates (nationalpost.com)
Vacation Property Mortgage – What you need to know
If you are like me, you have probably dreamed about one day purchasing a vacation property at your dream holiday destination. For some of you it might be a cottage on the lake at your secret fishing spot and for others it might be a time-share at your favourite Mexican resort. Whatever your dream vacation home looks like, the way in which you pay for it will be very different. Vacation Property Mortgage Options. The main determining factor for if you will be eligible for a mortgage will be the ownership of the property. A cottage or condo type property will fall under the same rules and regulations that most homes fall under. However, a time-share or other fractional ownership type property will probably not be eligible for mortgage financing. Why you might ask? Well, you do not actually own the property. You own the right to use it or possibly even a share of the corporation that owns it, but at the end of the day there bank would be unable to ...
More Than a Low Rate – Mortgage Customer Service
So you have done your research, worked with a qualified Mortgage Broker and feel you have the best rate and mortgage terms for you. .....but how is your new mortgage lender at customer service?I say it over an over, but it is true.....there is much more to a mortgage than just a low rate. A low mortgage rate is not a substitute for good customer service. How much is it worth to you to have your mortgage close on time? How much is it worth to you to be able to speak to a live person when you have a question or problem with your mortgage? Well, I have worked with clients who have have every problem imaginable with their lenders and I'm sure each of them would have paid an extra few basis points to go with a dependable lender.Chances are your mortgage broker has placed clients with your lender in the past. Don't be afraid to ask him how their experience has been. Trust me we hear about it when our customers have a bad experience with the lender we placed them with. Most times it ...
