Rates first…Prime interest rate remains stable and recent Fixed Rate decreases have seen our lowest 5 Year Fixed Rate down to 3.45%. Some “Experts” are now predicting that we could even see further declines in interest rates.
Now with interest rates out of the way, HAVE YOU THOUGHT ABOUT…your involvement in your local cultural activities?
What IS the connection with business and the arts? Our firm has recently become involved with the Kamloops Symphony Orchestra with one of our staff as a member of the Board. We’re slowly acquiring a greater appreciation for the role of Orchestral and Classical Arts in our community. Why? Perhaps the quotes of some interesting people can explain.. Continue reading
Wow, a couple of weeks off for vacation and fixed rates have increased as much as 1/2% by some lenders. Rates though, are still historically low. However, the last few weeks have been a good lesson for all of us as to how fast rates can change. We appear to be in a rate increasing environment and our advice continues to be, “STAY SAFE!”
Here are a few mortgage related news items to peak your interest: Continue reading
Bond yields are continuing to rise globally since the Fed mentioned an imminent exit from its bond purchasing program last week. The US Federal Reserve set off a dramatic spike in US borrowing costs last week after indicating a beginning withdrawal from their quantitative easing program.
This will most likely translate into higher fixed mortgage rates across the board – a continuation of last week’s rate increases. Continue reading
It’s no secret by now that mortgage rates–particularly the 5 year fixed rate terms–have risen in the last week by as much as 20-30 Basis Points (.2% to .3%). While minor in nature compared to historical norms, affordability is being affected.
This rate increase is primarily due to falling bond market prices resulting in increase yields for quality bonds and mortgages. This, together with recent rule changes by government, has had an effect on borrowing ability for most real estate buyers and refinancers. Here are some examples of changes in today’s mortgage market:
- Fixed rates increasing (although variable rate mortgages are slightly decreasing)
- Lenders are tightening criteria for qualification, e.g. if you have a credit line, you may find that you no longer qualify for as much of a mortgage.
- Properties that are not “prime” and readily saleable may present problems for financing.
- Lower Credit Scoring and credit blemishes on a borrower’s record may prevent qualifying
- Self Employed Borrowers are facing more stringent criteria than before
The obvious conclusion is that these and other policy changes will reduce the number of qualified buyers, thus reducing housing demand across the country and eventually softening house prices–clearly our government’s strategy.
Will these trends continue? I can’t find anyone that knows for sure, but my recommendation remains the same. In this market, with regard to acquisition and maintenance of debt….STAY SAFE!
When choosing a mortgage, you want advice that you can count on. As a member of one of Canada’s longest established national broker networks, Our Brokers are dedicated to providing you with all the information you need to make a well-informed decision on your mortgage financing needs. We’re updated with knowledge of the current market trends, rates, and regulations regularly, allowing us to provide you with sound guidance.
More lenders are now offering a wider range of mortgages to choose from. Consumers have begun to shop around for their mortgage rather than simply taking what their financial institution offers. Lenders have started advertising discounted rates, making it obvious that there’s a good reason to shop around. But the biggest reason for the increasing reliance on a mortgage broker is that we can offer you several important advantages:
- Independent, unbiased advice. As mortgage brokers, we provide mortgages from various lenders, so we’re not tied to one lender or one type of mortgage.
- More mortgage choices. Mortgage brokers have direct electronic access to virtually every major lender in Canada, so we can show you a wide range of rates and features.
- Best-available rates. We study the rates daily and always know where to find the most competitive ones. Plus we know how to negotiate with lenders to ensure you’re getting the best available deal.
- Fast, convenient local service. Mortgage brokers are highly motivated to keep your mortgage moving forward quickly because we only get paid – by the lender – when your mortgage is complete.
- Specialized knowledge. As mortgage professionals, we have a thorough understanding of all available products, features and rates. And we can explain everything to you so you know exactly what you’re getting into.
- Secure, established lenders. Mortgage brokers deal with the same reputable, established Canadian financial institutions you’re used to. Plus, we have access to some innovative broker-only lenders who offer even more attractive rates and features.
The Mortgage Centre became one of Canada’s first national mortgage broker organizations in 1989. I’m fully qualified to provide you with all of these benefits. Plus, we’re local business persons with roots in the community and a deep understanding of your local market.
Using a Mortgage Broker from The Mortgage Centre/Dico Holdings is by far your best mortgage option.