26 Apr

Mortgage Market Update April 26, 2012

General

Posted by: Anne Martin

 

FSCO 11764 | Independently Owned & Operated
Mortgage Market Update
Date: April 26th, 2012  
Keeping you updated on Mortgage Matters

Market Comment
wiegh scales

V39060: Government of Canada marketable bonds, average yield, 3-5 year
Low           1/31/2012                                1.15

Average    1/02/2012- 04/18/2012        1.35        

High                03/20/2012                        1.61  

 

As expected there was no change in the Bank of Canada the past week. They certainly set the stage for some possible increases in the future.

The bond rate remained flat the past 7 days, therefore no changes in the fixed term mortgage rates.

We still have 2 lenders offering 10 year funds at 3.89%. A wonderful option for those concerned with future rates.  

 

If you have a variable rate of any more than prime +.75 or a fixed rate of 4.0% or more, we should explore the merits of refinancing to a lower rate.  

 

Contact us for a free, no obligation review. Spending a few minutes could save you thousands of dollars. 

 

Bank prime is 3.00%


The next meeting of the Bank of Canada is on June 5, 2012.

 

P.S. If you, your family, or co-workers require guidance on current market trends, please call us, we are always available to help.

 


….Anne

 

Slowing inflation good news for wage gains


Jay Bryan
Post Media News | Canada.com

April 20, 2012

Friday’s news of a big drop in Canada’s inflation rate is gstrategyood news in important ways. There’s just one exception: it isn’t likely to delay anticipated increases in interest rates.

 

Instead, we should focus on something more important: when incomes are rising slowly and inflation is rising a little too quickly, our real after-inflation spending power can stagnate. In fact, that’s been the case for more than a year, even though we’re now in the fourth year of recovery from the recession. Now there’s hope that this squeeze could end.

 

But the lower inflation rate won’t delay the Bank of Canada’s plans to hike interest rates because the drop – to 1.9 per cent in March from 2.6 in February – was very close to what the central bank had already expected. It was predictable because the inflation measure compares current prices with those 12 months ago, and a big spike in prices early in 2011 fell out of the calculation for March, lowering price gains for the past year.

 

Click here to read full article 

 

 

THE WOLF IS GETTING CLOSER


PERSPECTIVE
Craig Alexander
Senior Vice President & Chief Economist
TD Bank Group
Craig Alexander TD Vice President
Craig Alexander
Over the past couple of years I have felt like the little boy who cried wolf. I have repeatedly warned Canadians to be careful with their finances because interest rates are bound to rise eventually. I said that at the start of last year, and interest rates ended the year lower. Regardless, I keep stressing that you have to read the book – the wolf does show up at the end.

Well, the Bank of Canada’s messaging this week suggests that the wolf is getting closer and there aren’t too many pages left.

The Bank clearly laid out the case for raising rates before long. It raised the economic growth outlook for 2012 to 2.4%, implying that the slack in the economy would be eliminated sooner than previously expected. The output gap is projected to be closed in the first half of 2013, rather than the previously predicted end of 2013. That means that inflation risks are higher, despite the central bank’s comment that it views the inflation risks as balanced, and the Bank remains squarely focused on its mandate of keeping inflation at 2% over the medium term.

Moreover, while risks remain, there was a strong sense that the central bank is more comfortable with them. The economic environment is characterized as one in which emerging market economies achieve a soft landing, the U.S. economy grows at a steady pace and Europe emerges from its recession before long. In this benign scenario, the Bank is signaling that higher rates will soon be appropriate in Canada. And while not spelled out  explicitly, higher interest rates would have the happy coincidence of tempering household debt growth, which is identified as “the biggest domestic risk”.

The hawkish perspective outlined above raises two core questions: First, when will interest rates rise? Second, how much will they increase?

 

Click here to read the full article 

 

Historical Interest Rate Graphs 

 
Below you will find a feature which will give you current interest rate trends.interest rate graph It can also be accessed on our web site. I hope you and your clients find it useful..

 
 

Our Commitment to You

  • Constant update of Market Conditions
  • Innovative Mortgage Products
  • Value Added Services
  • Unbiased Advice
  • Innovative Mortgage Strategies and NOT just Order Taking
In This Issue
Market Comment
Slowing inflation good news for wage gains..
THE WOLF IS GETTING CLOSER..
Interest Rate Graphs
Quick Links

Anne Martin
 Anne Martin
Mortgage Agent
FSCO Lic. M10002257  
Neighbourhood Dominion
Lending Centres
FSCO Lic. 11764

39 Collier Street,
Suite 300
Barrie, ON  L4M 1G5

P: 705.720.1001 x225 or 1.888.500.1841
Direct: 705-791.6683
Fax: 705.739.1893 or 1.866.739.1893

Email
Visit My Website

Like me on Facebook  
 
This email was sent to anne@barriemortgagelocators.com by anne@barriemortgagelocators.com |  
Head Office; Neighbourhood Dominion Lending Centres | FSCO 11764 | Independently Owned and Operated | 1140 Stellar Drive | Newmarket | Ontario | L3Y 7B7 | Canada

18 Apr

April 17, 2012 Bank of Canada Update

General

Posted by: Anne Martin

NDLC Logo with wording
Bank of Canada Announcement
Date: April 17th, 2012  
Bank of Canada Announcement

Bank of Canada maintains overnight rate target at 1 per cent                        canadian economy

The Bank of Canada maintained its target rate. It is worth reading the final paragraph(below) as it mentions possible withdrawal of “monetary policy stimulus”, meaning rate hikes are possible in the near future. 

 

“Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. In light of the reduced slack in the economy and firmer underlying inflation, some modest withdrawal of the present considerable monetary policy stimulus may become appropriate, consistent with achieving the 2 per cent inflation target over the medium term. The timing and degree of any such withdrawal will be weighed carefully against domestic and global economic developments”
Click here to read the full article

 

The next Bank of Canada Announcement is scheduled for June 5, 2012

 

Bank prime is 3.0%

P.S. If you have any questions as to what this means to your mortgage, we are always here to help you with unbiased advice.
 
 
In This Issue
Bank of Canada maintains overnight rate target at 1 per cent…
Quick Links
Visit my Website

Anne Martin
Anne Martin
Mortgage Agent FSCO M10002257
Neighbourhood Dominion Lending Centres FSCO Lic 11764

99 Bayfield St. 2nd Floor Barrie ON L4M 4Y5

Cell: 705.791.6683 Office: 705.739.4041

Email Website

 
 
This email was sent to natalia@ndlc.ca by anne@barriemortgagelocators.com |  
Neighbourhood Dominion Lending Centres | FSCO 11764 | Independently owned and operated | 1140 Stellar Drive | Newmarket | Ontario | L3Y 7B7 | Canada

12 Apr

Mortgage Market Update April 12, 2012

General

Posted by: Anne Martin

NDLC Logo with wording
Mortgage Market Update
Date: April 12th, 2012  
Keeping you updated on Mortgage Matters

Market Comment
wiegh scales

V39060: Government of Canada marketable bonds, average yield, 3-5 year Low           1/31/2012                    1.15

Average    1/02/2012- 04/10/2012        1.34        

High                03/20/2012                        1.61

 

Uneventful would describe the bond and mortgage market this past week. No real changes at all. The Bank of Canada announcement is next Tuesday and no changes are expected.
We still have 2 lenders offering 10 year funds at 3.89%. A wonderful option for those concerned with future rates. 

 

If you have a variable rate of any more than prime +.75 or a fixed rate of 4.0% or more, we should explore the merits of refinancing to a lower rate. 

 

Contact us for a free, no obligation review. Spending a few minutes could save you thousands of dollars.

 

Bank prime is at 3.00%

The next meeting of the Bank of Canada is on April 17th, 2012.

 

P.S. If you, your family, or co-workers require guidance on current market trends, please call us, we are always available to help.
….Anne
 

Collateral mortgages: Why banks like them

Rubina Ahmed-Haq Moneyville | Powered by thestar.com Sun Apr 01 2012
collateral mortgage

If you’re buying a house and are shopping for a mortgage this spring you may come across something called a collateral mortgage. This home financing tool has been around for a while, but mainly in the background. Now it’s going mainstream with both TD Bank and no-frills ING Direct abandoning the conventional mortgage in favour of this type of financing exclusively. Other big banks make collateral mortgages available, but for now offer both kinds.

 

Many consumers hunting for a mortgage would be hard pressed to explain the difference between the two, but here it is:

 

With a conventional mortgage, you and your lender agree on how much you can borrow, the length of the term and the interest rate. As an example, say the house you’re buying is worth $200,000. With 20 per cent down you would borrow $160,000. You might select a fixed-rate, five-year term, which this week is between 3 and 4 per cent.

 

With a collateral mortgage, you still have an agreed interest rate and term, but the bank registers a charge of up to 125 per cent the value of your home, provided you have at least 20 per cent equity in it. In this example the charge would be $200,000 plus up to another $50,000.

 

That’s because a collateral agreement assumes you will want to borrow more in the future and so makes this extra amount available now. As long as you maintain 20 per cent equity in your home, you borrow up to 80 per cent of its value.

 

Click here to read full article

 

 

Historical Interest Rate Graphs 

 
Below you will find a feature which will give you current interest rate trends.interest rate graph It can also be accessed on our web site. I hope you and your clients find it useful..

 
 
Our Commitment to You

  • Constant update of Market Conditions
  • Innovative Mortgage Products
  • Value Added Services
  • Unbiased Advice
  • Innovative Mortgage Strategies and NOT just Order Taking
In This Issue
Market Comment
Collateral mortgages: Why banks like them…
Interest Rate Graphs
Quick Links

Anne Martin
Anne Martin Mortgage Agent FSCO Lic. M10002257 
Neighbourhood Dominion
Lending Centres
FSCO Lic. 11764

39 Collier Street, Suite 300 Barrie, ON  L4M 1G5

P: 705.720.1001 x225 or 1.888.500.1841 Direct: 705-791.6683 Fax: 705.739.1893 or 1.866.739.1893

Email Visit My Website

Like me on Facebook  
 
This email was sent to anne@barriemortgagelocators.com by anne@barriemortgagelocators.com |  
Head Office; Neighbourhood Dominion Lending Centres | FSCO 11764 | Independently Owned and Operated | 1140 Stellar Drive | Newmarket | Ontario | L3Y 7B7 | Canada