19 Jul

Mortgage Market Update July 19, 2012

General

Posted by: Anne Martin

 

FSCO 11764 | Independently Owned & Operated
Mortgage Market Update
Date: July 19th, 2012  
Keeping you updated on Mortgage Matters

Market Comment
V39060: Government of Canada marketable bonds, average yield, 3-5 year
Low           1/06 /2012                                1.01

Average   1/02/2012- 07/17/2012          1.33           Money Clock

High           04/25/2012                              1.62 

 

Continued uncertainty in Europe and other emerging economies is still a concern to the Bank of Canada. On Tuesday, it was announced that no changes will take place and bank prime will remain at 3%. 

The bond rate remained steady this week with five year money maintaining the 3.09% – 3.19% range. We still have 3 lenders offering 10 year funds at 3.89%.

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 September 5th, 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

 

 

Carney tempers expectations for economy   

  

JEREMY TOROBIN

OTTAWA – The Globe and Mail

PublishedWednesday, Jul. 18 2012, 10:37 AM EDT

Last updatedWednesday, Jul. 18 2012, 6:09 PM EDT

 

Mark Carney’s outlook has deteriorated for Canada, the United States, Europe, China, the global economy and world prices for key commodity exports like oil. But he is keeping his finger on the trigger for a possible interest-rate hike.

 

In a quarterly forecast released Wednesday, the Bank of Canada Governor and his policy team expanded on why they have cut Canada’s growth projections for 2012 and 2013, and pushed back their time line for when the economy will be back at full capacity. Despite “severe headwinds,” they are confident the economy can stay afloat as long as the European crisis is not allowed to spin out of control, U.S. politicians manage to avert the so-called fiscal cliff, and oil prices don’t drop to levels that could see investment in resource projects grind to a halt.

 

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
Carney tempers expectations for economy
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 natalia@ndlc.ca 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 Jul

What On Earth are Standard Charge Terms???

General

Posted by: Anne Martin

Did you ever wonder what that long sheet of paper the lawyer hands you when you sign for your  mortgage is?  It says “Standard Charge Terms” on the top and has lots of legal jargon and fine print that just boggles the mind!

Here’s what it means….

This document contains the rules by which the financial institution is loaning you the money and what yours and their obligations are.  There are such things as,

–  how they expect to be paid

–  what happens if you don’t pay

–  what yours and their rights are if you don’t pay

–  power of sale rules

–  any fees for NSF payments etc.

–  how you can take advantage of prepayment privileges

–  who pays the taxes

–  family law obligations

– what happens if you want to sell the property

–  terms by which the mortgage is transferable or assumable

– who pays the taxes

– what if the property is a condominium

–  you must comply with the law in your use of the property

And a whole lot more.  Standard charge terms are generally “standard” throughout the industry but there can be some differences from lender to lender, such as how much you can prepay at a time and when.

So, don’t just sign it to get things over with, give it at least a look over to make sure you understand what your obligations are and how the lender is obligated to you.

12 Jul

Mortgage Market Update July 12, 2012

General

Posted by: Anne Martin

Neighbourhood Dominion Lending Centres
FSCO 11764 | Independently Owned & Operated
Mortgage Market Update
Date: July 12th, 2012  
Keeping you updated on Mortgage Matters

Market Comment
V39060: Government of Canada marketable bonds, average yield, 3-5 year Low           1/06 /2012                                1.01

Average   1/02/2012- 07/10/2012          1.34           strategy

High           04/25/2012                              1.62 

 

With the new mortgage regulations last week, every lender saw instant increased volumes. As a result, we are experiencing slower turnaround times. On the conventional side, a few of our lenders have tightened amortizations to be consistent with that of the new changes but we do still have many offering the 30 -35 year amortizations.
The next announcement from Bank of Canada will take place on July 17th. No changes are expected.
The bond rate remained steady this week with five year money maintaining the 3.09% – 3.19% range.
We now have 3 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 July 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
 

Mortgage rules change today, but about half Canadians don’t know it

Financial Post Staff  Jul 9, 2012 – 8:59 AM ET | Last Updated: Jul 9, 2012 5:12 PM ET

fixed vs variable

TORONTO – New mortgage rules go into effect today in Canada but a recent survey suggests many people are unfamiliar with the changes.

Starting Monday, lenders can only issue home equity loans up to a maximum of 80% of a property’s value – down from 85%.

 

The maximum amortization period also drops to 25 years from 30 years – giving borrowers less time to repay the debt in full.

 

In addition, the federal government is capping the maximum debt ratios for households and limiting government insurance to mortgages on homes with a purchase price of less than $1-million.

 

 

 

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
Mortgage rules change today, but about half Canadians don’t know it
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 natalia@ndlc.ca by anne@barriemortgagelocators.com |  
Head Office; Neighbourhood Dominion Lending Centres | FSCO 11764 | Independently Owned and Operated | 1140 Stellar Drive | Newmarket | Ontario | L3Y 7B7 | Canada

9 Jul

Understanding Basic Mortgage Terminology Can Relieve Stress

General

Posted by: Anne Martin

Getting a mortgage can be a stressful experience.   There is so much to know and understand including some pretty confusing terminology like the difference between term and amortization.  Understanding what the mortgage professional is talking about can make the process a whole lot easier. 

Here are some mortgage related definitions –

house in boxAnd by the way,

Term

The period of time you are under contract with the specific lender and the interest rate that they are providing for that time period

Amortization

A term used to describe the period of time over which the entire mortgage is to be paid assuming regular payments.

Appraisal

An independent assessment of the property by a qualified individual.

Closed mortgage

A mortgage that cannot be prepaid, renegotiated or refinanced prior to maturity, unless stated in the agreed terms.

Closing costs

Costs that are in addition to the purchase price of a property and which must be paid on the closing date. Examples include legal fees, land transfer taxes, and disbursements.

Debt service ratio

The percentage of the borrower’s income used for monthly payments of principal, interest, taxes, heating costs and condo fees (if applicable).  GDS is gross debt service – how much you spend on Principal, Interest, Taxes and Heating.  TDS is total debt service – GDS plus all other payment obligations.

Default

A homeowner is ‘in default’ when he or she breaks the terms of a mortgage agreement, usually by not making required mortgage payments or by not making payments on time.

 Down payment

The money that you pay up-front for a house. Down payments typically range from 5%-20% of the total value of the home.

Early Discharge Penalty 

A penalty you may pay your lending institution for breaking the mortgage contract early.  This is usually 3 months interest or the Interest Rate Differential (IRD).  Whichever is larger. See below for IRD.

Equity                                        

The difference between the market value of a property and the amount owed on the property. This difference is the amount a homeowner actually owns outright.

Home Equity Line of Credit

A loan that is secured against your house, like your mortgage, but you obtain a maximum amount that you may borrow but only borrow in the amounts that are needed.  You only make payments, minimum is interest only, on what you have borrowed at any given time.  

High ratio mortgage

A mortgage where the borrower is contributing less than 20% of the value of the property as the down payment.  The borrower may have to pay a mortgage default insurance premium such as CMHC insurance, usually tacked onto the mortgage amount.

Interest Rate Differential

A way lenders calculate the penalty for discharging a mortgage before the end of a closed mortgage contract.

The difference between the interest that the financial institution will make if you continued your mortgage to the end of the contract and what they will make by loaning it to someone else at the current interest rate. 

Lump sum payment

An extra payment that you make to reduce the amount of your mortgage, usually as stipulated in your mortgage contract.

Mortgage broker

A company or individual that finds mortgage financing for individuals and companies whether for purchase, refinance, lender switches, etc. A broker does not actually lend money but seeks out a lender and arranges the mortgage terms.

 Mortgage default insurance

Required if you are contributing between 5% and 20% of the value of the property as the down payment.

Mortgagee/mortgagor

Mortgagee is the lender; mortgagor is the borrower.

Mortgage life insurance

This form of insurance pays the outstanding balance of your mortgage in full if you die. This is different from home or property insurance, which insures your home and its contents.

Mortgage interest rate

The percentage of interest that you pay on top of the principal amount of the loan.   

Open mortgage

A mortgage which you can pay off, renew or refinance at any time. The interest rate for an open mortgage is usually higher than a closed mortgage rate.

Porting

Transferring an existing mortgage from one home to a new home when you move. This is known as a “portable” mortgage.

Refinancing

Increasing the amount of your current mortgage,  usually at a new interest rate. The term of the new mortgage must be equal to or greater than the term remaining on your current mortgage.

Variable rate mortgage

A mortgage with an interest rate that changes with the market. The rate changes when prime rate goes up, meaning your rate is usually the prime + or – a fixed figure.  For instance if your variable rate is Prime (currently 3%) plus .50%.  You would pay 3.50%.  If prime rate goes up for instance to 3.25%, you interest rate would be 3.75%. 

5 Jul

Mortgage Market Update July 5, 2012

General

Posted by: Anne Martin

Neighbourhood Dominion Lending Centres
FSCO 11764 | Independently Owned & Operated
Mortgage Market Update
Date: July 5th, 2012  
Keeping you updated on Mortgage Matters

Market Comment
V39060: Government of Canada marketable bonds, average yield, 3-5 year
Low           1/06 /2012                                1.01

Average   1/02/2012- 07/03/2012          1.34           strategy

High           04/25/2012                              1.62 

 

The majority of our lenders have officially announced the changes to underwriting guidelines effective July 9th at the latest. We are seeing an overall tightening up in the mortgage industry with both high ratio and conventional mortgages.   The next announcement from the Bank of Canada will be July 17th. No changes are expected
 
The bond rate remained steady this week with five year money maintaining the 3.09% – 3.19% range.

We now have 3 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 July 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

 

Bank of Montreal predicts low key interest rate until mid-2013

Bloomberg July 3, 2012
The Vancouver Sun
fixed vs variable

TORONTO – The Bank of Montreal predicted Tuesday that the Bank of Canada will keep its key interest rate low for longer than it expected.

 

Economists at the bank are now predicting that the central bank will not raise its key rate until July 2013, six months later than their earlier prediction of January 2013.

 

The rate affects the prime lending rates at banks and in turn influences all kinds of interest rates including those charged to variable rate mortgages and lines of credit.

 
 

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
Bank of Montreal predicts low key interest rate until mid-2013
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