In this article in the Financial Post, the age old debate of variable rate mortgages vs. fixed rate mortgages is raised…yet again. It infers that people are in over their heads with variable rate mortgages and that most people are best getting into a fixed rated mortgage. (more…)
West coast couple stakes it all on property – Alternative Analysis from a Mortgage Broker
I came across this article today in the Financial Post, in which a financial planner breaks down the situation of a volunteer reader. He delivers an opinion that I am inclined to disagree with. Although I am a mortgage broker and not a financial planner, I will attempt to explain my thoughts in detail with regards to the article. (more…)
ICICI Bank Joins The Mortgage Broker Channel
Although I had heard of ICICI Bank previously, we as mortgage brokers did not have access to them for our clients, and the client would have to go directly to one of their few branches to obtain a mortgage. However, this has now changed, and I now have access to this relatively new bank. There is a good article on them at the Financial Post, talking about their quick rate of growth. (more…)
Slow US Economy Could Affect Canada Variable Rates
Further to my comments yesterday about continuing to recommend variable rate mortgages to clients, there is a new story about the Chairman of the US Federal Reserve talking about an uncertain economic recovery in the US. (more…)
Bank of Canada increases Prime Lending Rate, Affecting Variable Rate Mortgages
As widely anticipated, the Bank of Canada today increased its prime rate to 2.75%, affecting variable mortgages. The Bank of Canada is the first central bank in the G7 to raise rates once, let alone twice as they have did for the first time 5 weeks ago. (more…)
Keep The Condo…Pay Down The Mortgage…Lower Your Taxes
On the Globe and Mail website today is a segment in which a reader poses a question about her financial situation and a financial planner provides some advice.
In this segment, a 57 year old woman on disability with some savings, some equity in a condominium and a fairly manageable mortgage asks how to best go about her finances when it comes to retirement. (more…)
Vancouver Home Sales Down 30%, Still The Second Best June Ever
In this article on the Globe and Mail today, they talk compare sales from this past June with the June of 2009, and that sales are down about 30% from last June. They correctly attribute the slower market (in my opinion) to the mortgage lending rule changes that were made in April. The market saw an increase in sales prior to the mortgage changes, and has seen a decrease in sales since the changes have been made.
The interesting part in the article is that (more…)
Bank of Canada Decreases Mortgage Qualifying Rate
The bank of Canada has decreased the their 5 year qualifying rate to 5.79%. This is the rate that “A” mortgage lenders have to use in their calculations when qualifying for variable rate mortgages or fixed rate mortgages where there is less than 20% equity in the home.
This change is often a reflection of the economy and bond markets. This will result in it being slightly easier to obtain a variable rate mortgage or shorter term fixed rate mortgage. The rate is also largely followed by the chartered banks posted mortgage rates.
US Mortgage Situation Bleak in Contrast to Canada
I came across this interesting article today that talks about the struggles in the US mortgage industry and housing market and also contrasts this to Canada. There has been a lot of news lately about US housing and mortgages being a large mess and continuing to be so almost 2 years after the initial hit, and how it is slowing economic recovery in the US. The most interesting part of the article for most Canadians is where they talk about Canada and the difference in mortgage lending between Canada and the US. (more…)
Strong Job Numbers Lead to Prime Mortgage Rate Increase
There is a news report today following a report from Statistics Canada stating that the Canadian economy added 93,000 jobs in the month of June pushing unemployment rates to their lowest levels in 1 1/2 years. Unfortunately for most people in Vancouver and BC, the job gains were mostly in Ontario and Quebec, where most of the job losses happened in the recession of late 2008. (more…)