Showing posts from January, 2010
Two items of interest. 1) This past Tues. The Bank of Canada quarenteed to keep its trend-setting rate at 0.25% until the end of June. The implication was there to expect rates to rise after that. If you have a mortgage that is coming up for renewal or are looking to purchase soon, now is the time to give us a call to see how we can help. 2) Street Capital has rolled out the first nationally available 1-year adjustable rate mortgage. Paul Grewal, President of Street Capital, says the product is well-suited to those who expect that “discounts on ARM’s will increase.” It gives people “the flexibility to choose a shorter ARM term,” he adds. Therefore, if you think variable rates will be prime – 0.50% next year, for example, this 1-year variable lets you switch mortgages in 12 months without penalty--instead of waiting 3-5 years. Street Capital also lets customers convert to a 3-, 4- or 5-year fixed rate at any time, with no fee, and at discounted broker rates. Here are some of the key gui
Canada Prepared For Rising Rates according to a recent surrvety bay CAAMP. Claims that Canadians are taking out risky variable-rate mortgages and borrowing more than they can afford “are not based on actual data” and “are misinformed.” That’s according to CAAMP , who issued this study of 40,000 mortgages from 2009: Revisiting The Canadian Mortgage Market… Despite rising home prices, first-time mortgagors took out “far less” than they could afford last year, says CAAMP. "The vast majority of Canadian mortgage borrowers are not taking on undue risks. They have factored rising interest rates in to their mortgage decisions," stated Jim Murphy, president and CEO of CAAMP. CAAMP ran simulations to estimate what would happen if the Bank of Canada hiked rates 3% over two years (and fixed rates rose 1.25%). It found that income gains should offset much or all of the increases in mortgage payments that most Canadian’s would experience. "The bottom line from the simulations is th