According to the latest article from CMHC, housing starts have picked up the pace and are re-growing.
The seasonally adjusted annual rate of housing starts increased to 150,400 units in August from 134,200 units in July, according to Canada Mortgage and Housing Corporation (CMHC).
“Housing starts are trending higher, reflecting improvements in both the single and multiple segments,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “The improvement in housing starts is consiste…
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Added by Charmaine Idzerda on September 28, 2009 at 2:10pm —
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RITA TRICHUR Toronto Star: Falling bond yields could spur a slight drop in medium-term residential mortgage rates this summer, but bargain-hungry consumers would be foolish to count on considerably cheaper borrowing costs, experts say.
About a month ago, banks blamed soaring bond yields for two sizeable hikes to key residential mortgage rates.
Those moves drove up
posted rates on five-year fixed-rate loans by 60 basis points to 5.85 per cent.
While yields have reversed course in recent we…
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Added by Charmaine Idzerda on July 13, 2009 at 9:53am —
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This new exciting mortgage product is currently at a rate of 2.75%!
-Purchase must close by August 28th, 2009
-The 18-month term is convertible at any time with no penalty to a 5 year fixed rate mortgage, at published rates available at time of conversion
-20% prepayment allowed each year!!
-You may also increase payment by 20% each year
-On this product a minimum amortization of 15 years is allowed
Email Charmaine@designermortgages.ca for more information on getting this exciting new product!
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Added by Charmaine Idzerda on June 30, 2009 at 11:01am —
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Would you like to pay an extra $300 per month on your mortgage? Not likely.
That hasn’t stopped a number of Canadians, with the deal of a lifetime on a variable-rate mortgage, from switching over to a more expensive fixed-rate product and paying the extra freight.
A fear of rising rates is driving the rash decision. But if you’ve finally managed to pin your banker to the ground, why on Earth would you let him off the mat?
More than 28% of Canadians have a variable-rate product tied to prime,…
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Added by Charmaine Idzerda on June 22, 2009 at 11:29am —
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A new mortgage product has recently been launched.
This new and innovative product called the 50/50 WISE mortgage. Don’t choose between Fixed and Variable. Choose Both!
They key aspects to this new mortgage are detailed below:
•50% of mortgage is at the lowest ARM rate in the Industry (currently, prime +.40 = 2.65%). With flexibility to convert to a fixed rate mortgage.
•50% of the mortgage is secure at a competitive 5 year fixed rate.
•Combined total is at the lowest current 5 year effective r…
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Added by Charmaine Idzerda on June 10, 2009 at 4:12pm —
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Many lenders have raised their interest rates on 5 year and longer fixed rate mortgages.
Why is this happening?
Banks lend more money than they take in through deposits. In order to meet the demand for customer loans, they borrow money in financial markets. To ensure they are not taking interest rate risk, they lock in the rate on the money they borrow to match the term of the mortgage. For example, a 5 year fixed mortgage is funded by a 5 year fixed rate bond. In May, the rate on longe…
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Added by Charmaine Idzerda on June 8, 2009 at 12:41pm —
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The Home Renovation Tax Credit (HRTC) can help improve the value of your home.
Renovating your home is an investment in the long term value of your home. Here’s how the 2009 Home Renovation Tax Credit can work for you. Canadian homeowners can claim a 15% non-refundable tax credit for eligible expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350 ($9000 x 15%). Taxpayers can claim the HRTC when filing their 2009 tax return.…
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Added by Charmaine Idzerda on April 30, 2009 at 12:45pm —
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It means that you can get a 5 year fixed rate Mortgage for as little as 3.69% Quick Close Special (the lowest in Canadian history) and a variable rate at 2.85% (Prime plus 0.60).
Another important point, never before made, is that the Bank of Canada is going to hold the overnight lending rate steady until June 2010.
So if you currently have a variable rate, now is not the time to lock in if the Bank holds true to its promise.
Many people who are in fixed rates are looking at refinancing their mo…
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Added by Charmaine Idzerda on April 23, 2009 at 1:29pm —
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During Canada’s “Housing Boom”, that occurred roughly from 2002 to 2008, unsound price increases drove up levels of building. Affordability of these prices have diminished significantly leaving a large disconnect between house prices and income. This situation was in great need of a correction. Our view is that house prices exceeded the value of housing that was justified by fundamentals by approximately 9% nationwide. This overpricing forced a level of residential construction that exceeded its…
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Added by Charmaine Idzerda on April 8, 2009 at 4:30pm —
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As home buyers keep hearing about the “credit crunch” and doom and gloom, they wonder if they will ever be able to realize their dream of home ownership.
I guess it depends how you look at life, is the glass half empty or half full. I personally believe there is a wonderful opportunity, right now. Interest rates are at an all time low, plus there are tremendous “bargains” in the real estate market.
A little over a year ago we were paying 5.79% for a 5 year fixed rate. Today at a rate of 5.79% so…
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Added by Charmaine Idzerda on March 4, 2009 at 12:56pm —
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Whether you intend to finance your renovation yourself or borrow money, you should talk to a financial adviser and to your lender before you make firm plans. They can help you understand your options and advise on how much you can borrow. This information will help you plan realistically.
EXPLORE YOUR OPTIONS
Your own resources: For smaller renovation projects, you may consider self-funding material costs, especially if you plan to do the work yourself.
Credit card: Likewise, you can use your cr…
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Added by Charmaine Idzerda on March 2, 2009 at 5:16pm —
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Economic forecasting seems to be getting more and more difficult. Who would have thought a year ago that interest rates would fall to the current level? We had an increase in fixed rates that started in 2007 and pretty much continued to December 2008. During this time many buyers thinking this was the trend decided to lock into fixed rates. Homebuyers locked in their mortgage at the 5 year fixed rate, which was around 5.75%. Today we can get a 5-year rate as low as 4.29%. If you have a fixed rat…
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Added by Charmaine Idzerda on March 2, 2009 at 11:17am —
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