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Monday, March 08, 2010 8:50 AM

Interest Rates March 5, 2010

 CREATIVE MORTGAGE CORP.

March 5, 2010 - Mortgage News and Rates 

New Service -Due to the demand from realtors inquiring into client friendly editions of our newsletter and rate sheet, we have added this which can then be forwarded to your clients.  The newsletter will be more focused on issues pertaining to your clients such as new market regulations, interest rate movements and the different types of mortgages that may benefit them. We also plan to add examples on recent mortgages that we have helped clients obtain.  If you have any clients that you would think could benefit from our newsletters while you are trying to find them a home, please let us know. All we will require is their name and email address and they can asked to be removed from out list at any time in the future. 

Rates Hold Steady
As predicted, the Bank of Canada did not move their interest rates on Tuesday of this week. They did however give a  good indication that the Canadian economy is starting to heat up and that they will need to temper the growth at some point. In the fourth quarter of 2009, the economy grew at a pace close to 5%. With Canada showing large signs of strength and the US still faltering, it places tremendous amounts of pressure on the Bank of Canada to make a monetary adjustment in some capacity. Raising interest rates would be the easiest way to cool down the hot market, however with a lagging US market and a high Canadian dollar, it makes this task a little more complex. Any sort of increase in interest rates by the Bank of Canada could cause our Canadian dollar to increase which would harm our exporting economy that is still struggling.   http://www.financialpost.com/news-sectors/economy/story.html?id=2631601   
Mortgage Rules
Attached is a simple break down of the new mortgage rules and regulations set forth by the Canadian Department of Finance. This is a great link that you can use as a reference for any questions your client has as well as something that you could forward on directly to your clients. If they have any further questions, feel free to forward our contact information on to them.   http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2010/02/new-mortgage-rules-the-good-the-bad-the-ugly.html
10 Facts About HST
The new HST tax credit is going to be difficult on the real estate market once it comes into effect in July of this year. We have a great breakdown of 10 of the most important facts about HST that your clients should know about when purchasing a home. There are also a few simple examples which will help break down what your clients could be paying by purchasing a house after the rules comes into effect.   http://www.vancouver-real-estate-direct.com/HST/index.html 

 

   

Frustrated with your clients not being pre-approved? 

Have them contact us for a quick pre-approval so that you never have a deal fall through because of financing. 

We Value Your Clients:

Our main objective in working with your clients is to educate them on their financing options as well as provide them with adequate financing to help them purchase their home, investment or vacation property. We help clients see what they are capable of affording based on the rates we are able to offer. With our ability to fund mortgages with a high efficiency, we are able to pass along special rates that lenders offer us to your clients. We have the ability to set up mortgages all across Canada.

If you know of anyone who would enjoy reading our weekly Newsletter and Rate Sheet, please let us know and we can add their email address to our growing list.

BROKER'S BEST RATES

TERM

RATE*

PMT/$1,000**

APR

1 YEAR CLOSED

2.25%

$3.44/$1,000

2.26%

2 YEAR CLOSED

2.85%

$3.76/$1,000

2.87%

3 YEAR CLOSED

3.25%

$3.98/$1,000

3.28%

5 YEAR CLOSED

3.69%

$4.23/$1,000

3.72%

7 YEAR CLOSED

4.95%

$4.98/$1,000

5.01%

10 YEAR CLOSED

5.20%

$5.14/$1,000

5.27%

3 YEAR VARIABLE

PRIME - 0.40%

$3.24/$1,000

1.87%

5 YEAR VARIABLE

PRIME - 0.30%

$3.28/$1,000

1.96%

PRIME RATE 2.25%

For more information give us a call

RED Indicates a Recent Rate Change

              
Shaun Pierce, AMP                                                
Mortgage Consultant                                                
(250) 717 – 8949 (Ext. 102)
spierce@creativemortgage.ca                                  
Lesley Pierce, AMP
Mortgage Consultant              
(250) 717 – 8949 (Ext. 103)
Paul Cescon, BBA, AMP
Mortgage Consultant
(250) 717 – 8949 (Ext. 101)
 
For more information, visit our website www.creativemortgage.ca   
Follow us on Twitter - @MORTGAGE_BC

 

   * Rates are subject to change and Lenders approval
 ** Payments based on a 35 year amortization and monthly payments
 If you would like to be removed for our weekly rate sheet mailing, please reply to email asking to be taken off list
Posted by Brian O'Reilly | 0 Comments
Wednesday, March 03, 2010 7:54 AM

Why Didn't it Sell?

Why Didn't it Sell?

Hi,

Right now you're probably feeling frustrated, depressed, and maybe just a bit angry. You listed your home expecting it to be sold and expecting to be on your way to a new home or a new adventure by now.

 Instead, you watched your home expire off the market unsold.

What happened? Why isn't it sold?

 One of four vital factors was somehow "off." Even in a market that has a year's worth of inventory, a home will sell in a reasonable amount of time if the following four elements are done correctly: It's called the 4 P's of marketing.

Product Place Price Promotion

Your agent should have advised you about the proper price for your home in today's market. Unfortunately, some agents are afraid to tell you the truth about pricing, because the market is down and they know you'll be disappointed.

 Presentation is the area you control. Making your home look more desirable than all others for sale in its price range isn't done without effort, but it will pay off.

 Marketing is your agent's job, and it consists of many components. Not only must your agent place your home where it will be seen by the greatest number of buyers, he or she must provide enticing photographs and descriptions that show buyers they really must see this house.

 I'm sure you don't want to go through another disappointing experience, and I don't blame you. But you don't have to. Once these four factors are properly in place, you'll be on your way to seeing a "Sold" sign in the front yard. My web site at www.brianoreilly.ca is in all the top search engines for Kelowna & area Real Estate where 80% of buyers search. Check it out. Check out the Inspired Expired under the SELLERS button.What factor(s) were turned "off"?

Give me a call at 250-862-1546 I'll be glad to sit down with you and explain how we can make these 4 elements work together to give your home the edge over your competition. Of course, there's no obligation. Not computer savy, Call me. We deliver.

 

 Sincerely,

Brian O'Reilly

Posted by Brian O'Reilly | 0 Comments
Wednesday, March 03, 2010 7:22 AM

Interest Rates Feb. 26, 2010

 CREATIVE MORTGAGE CORP.

February 26, 2010 - Mortgage News and Rates 

 

Mortgage Regulations
There were a few significant changes made to the mortgage industry by our Finance Department which will come into affect April 19, 2010.

1. The minimum downpayment on rental properties has gone from 5% all the way up to 20%. The main reason for this change was to try and slow down speculative investors from purchasing rental homes with very little down payment. Essentially a slight drop in the housing market would lead to many rental houses in a negative equity position. This would make the financial lending institutions very vulnerable as people could walk away from their home and mortgage, similar to what occurred in the US.

2. The maximum you will be able to refinance your home to is 90% of the value which is down from 95%. Again, what the finance department was looking to do here was prevent the possibility of an owner pulling out too much equity and making themselves vulnerable to having a negative equity in their house.

3. The rate that the lenders and mortgage insurance companies will use to qualify someone for a property purchase has changed. The new rules indicates that you can only qualify on a 5 year fixed rate even if you are wanting a shorter fixed term or variable rate. There is no clarification as to whether the lending institutions will use their posted or discount rate for qualification purposes. We will update you when they clarify this. 

4. Lastly, the Finance Department really wanted to make it tougher to qualify for a mortgage based on a heavy reliance on the rental income. We have gone into more detail below as we see this as a new major obstacle for clients who are trying to get approved for a mortgage with rental income used as part of the mortgage payment from a qualification standpoint.    
Renewing Mortgages
When it comes time for clients to renew their mortgage we want to make sure they should do their homework before committing to a new term and rate. Recently, we had a client come to us with a maturing mortgage term and the offering rate from the existing lender. The rate the lender was offering their existing client who had made all his payments on time was 5.10% on a 5 year fixed rate. To put that in perspective, we can offer him 3.69% on the same term. Too often do our clients fail to call us for rates and sign on the first mortgage offer from their existing lender expecting it to be the best rate available. The message we want to get out is to have your clients do their homework when it comes to mortgages.  http://www.bankrate.com/can/news/mortgages/Jan10_mortgage_renewal_trasnfer_a1can.asp?prodtype=mtg
Rental Add-Back vs. Offset
As mentioned above, one of the major new regulations that are going to affect home buyers is the move from allowing rental offsets to now allowing only rental add-backs. The difference between the two sounds minimal but from a lending standpoint, it is huge! In the past most of the lenders that we used allowed a rental offset which would allow up to 80% of the rental income to be offset against the total mortgage payment. So for those homebuyers that would rely on rental income when qualifying for a mortgage can no longer be so dependant on the rental income. The new rule of rental add-backs to a maximum of 50% implies that only half of the total rental income will be added to the overall qualifying income amount which therefore would require a larger income to qualify for the same mortgage versus the 80% rental offset rule. This can really affect clients who are looking to get into the housing market and use the suite income to qualify for the mortgage.  http://www.bcmortgage.ca/investment_rental_bc.htm
  

Frustrated with your clients not being pre-approved? 

Have them contact us for a quick pre-approval so that you never have a deal fall through because of financing. 

We Value Your Clients:

Our main objective in working with your clients is to educate them on their financing options as well as provide them with adequate financing to help them purchase their home, investment or vacation property. We help clients see what they are capable of affording based on the rates we are able to offer. With our ability to fund mortgages with a high efficiency, we are able to pass along special rates that lenders offer us to your clients. We have the ability to set up mortgages all across Canada.

If you know of anyone who would enjoy reading our weekly Newsletter and Rate Sheet, please let us know and we can add their email address to our growing list.

BROKER'S BEST RATES

TERM

RATE*

PMT/$1,000**

APR

1 YEAR CLOSED

2.25%

$3.44/$1,000

2.26%

2 YEAR CLOSED

2.85%

$3.76/$1,000

2.87%

3 YEAR CLOSED

3.25%

$3.98/$1,000

3.28%

5 YEAR CLOSED

3.69%

$4.23/$1,000

3.72%

7 YEAR CLOSED

4.95%

$4.98/$1,000

5.01%

10 YEAR CLOSED

5.20%

$5.14/$1,000

5.27%

3 YEAR VARIABLE

PRIME - 0.40%

$3.24/$1,000

1.87%

5 YEAR VARIABLE

PRIME - 0.30%

$3.28/$1,000

1.96%

PRIME RATE 2.25%

For more information give us a call

RED Indicates a Recent Rate Change

              
Shaun Pierce, AMP                                                Lesley Pierce, AMP
Mortgage Consultant                                                Mortgage Consultant              
(250) 717 – 8949 (Ext. 102)                                      (250) 717 – 8949 (Ext. 103)
spierce@creativemortgage.ca                                  lpierce@creativemortgage.ca
Paul Cescon, BBA
Mortgage Consultant
(250) 717 – 8949 (Ext. 101)

 

For more information, visit our website www.creativemortgage.ca   
Follow us on Twitter - @MORTGAGE_BC

 

   * Rates are subject to change and Lenders approval
 ** Payments based on a 35 year amortization and monthly payments
 If you would like to be removed for our weekly rate sheet mailing, please reply to email asking to be taken off list
Posted by Brian O'Reilly | 0 Comments
Sunday, February 21, 2010 6:56 AM

Feb. 19, 2010 Interest Rates

 CREATIVE MORTGAGE CORP.

February 19, 2010 - Mortgage News and Rates 

Time is Ticking 
Although the Bank of Canada claims that they will not raise interest rates until July of this year it will not stop the lenders from making a pre-emptive move to raise their rates ahead of time. We are in a countdown for rate increases from manyof ourlenders. At the end of December, we saw one of our lenders raise the5 year fixed rate from 3.89% all the way up to 4.44%based strictly on theanticipation that the Bank of Canada may raise their rates at January's meeting. The lender since then has lowered the5 year rate back under 4% again. As mentioned in many previous articles, we have the ability to hold rates for 120 days for your clients as well as possess the ability to obtain quick pre-approvals. To find out what the maximum amount your clients can afford, have them call us for a quick approval.    http://www.montrealgazette.com/business/fp/Clock+ticking+interest+rate+hikes/2556509/story.html
Lending Restrictions are Here!!!
As of Tuesday this week the Department of Finance has made some proactive decisions to limit the excessive lending that they feel is currently occurring in Canada. These changes will play a significant roll in slowingdown the real estate market in Canada along with the implementation of the HST tax in July. The level of debt that Canadians took on in 2009 increased over 5% from 2008. The government is not so worried with  debt levels today based on the low interest rates, however, are more concerned  in 3 to 5 years when interest rates, especially on mortgages, will likely be much higher.  The three main major changes which will come into effect are as follows:
1. Home purchasers will only be able to qualify for a mortgage using the 5 year fixed term rate (even if they choose a shorter mortgage term).
2. Homeowners will only be able to refinance their homes to 90% instead of 95%.
3. The minimum downpayment required for rental properties has gone from 5% all the way up to 20%.  The Department of Finance is trying to limit the speculative purchasing of secondary rental properties with minimaldownpayments. http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2010/02/devilish-details-from-yesterdays-announcement.html
Why Our Bubble Didn’t Pop

There are many sceptics out there that point to Canada’s housing market as the next bubble to pop. This however will not be what happened in the US for two reasons, one being that we were not lending to borrowers with terrible credit and a zero downpayment and the second being that we have already experienced amarket correction in the housing market. That is not to say that we won’t see another correction in the future, however, our default rate is no where near the levels seen by the US economy.

The Housing market iscompletely intertwined with one issue affecting the next issue, similar to a champagne effect. To start, in the US when there was a tightening of the credit market due to the frivolous lending, it caused the housing market to slow down and this coincided with job loses in every sector tied to the housing market,from raw material production to contractors and  real estate agents etc. When jobs are lost, people cannot make mortgage payments and are forced to sell their homes or end up defaulting on their mortgage. When there are numerous people becoming unemployed at once, it floods the market with an excess supply of houses thus causing major downward pressure on the housing prices.

In Canada, we have experienced large number of unemployment, similar to the US. Our major difference is that we have never carried the same debt load as the US consumers. We tend to have larger amounts of equity in ourhomes compared to that of the US which has assisted Canadians in retaining their homes rather than having to sell at a reduced value. We are not bulletproof from another housing correction but we are definitelybetterequipped than our counterparts down south. http://www.mortgagebrokernews.ca/news/43560/details.aspx

 

Frustrated with your clients not being pre-approved? 

Have them contact us for a quick pre-approval so that you never have a deal fall through because of financing. 

We Value Your Clients:

Our main objective in working with your clients is to educate them on their financing options as well as provide them with adequate financing to help them purchase their home, investment or vacation property. We help clients see what they are capable of affording based on the rates we are able to offer. With our ability to fund mortgages with a high efficiency, we are able to pass along special rates that lenders offer us to your clients. We have the ability to set up mortgages all across Canada.

If you know of anyone who would enjoy reading our weekly Newsletter and Rate Sheet, please let us know and we can add their email address to our growing list.

BROKER'S BEST RATES

TERM

RATE*

PMT/$1,000**

APR

1 YEAR CLOSED

2.25%

$3.44/$1,000

2.26%

2 YEAR CLOSED

2.85%

$3.76/$1,000

2.87%

3 YEAR CLOSED

3.25%

$3.98/$1,000

3.28%

5 YEAR CLOSED

3.69%

$4.23/$1,000

3.72%

7 YEAR CLOSED

4.95%

$4.98/$1,000

5.01%

10 YEAR CLOSED

5.20%

$5.14/$1,000

5.27%

3 YEAR VARIABLE

PRIME - 0.30%

$3.28/$1,000

1.96%

5 YEAR VARIABLE

PRIME - 0.30%

$3.28/$1,000

1.96%

PRIME RATE 2.25%

For more information give us a call

RED Indicates a Recent Rate Change

              
Shaun Pierce, AMP                                                  Lesley Pierce, AMP
Mortgage Consultant                                                Mortgage Consultant              
(250) 717 – 8949 (Ext. 102)                                      (250) 717 – 8949 (Ext. 103)
spierce@creativemortgage.ca                                  lpierce@creativemortgage.ca
Paul Cescon, BBA
Mortgage Consultant
(250) 717 – 8949 (Ext. 101)

 

For more information, visit our website www.creativemortgage.ca   
Follow us on Twitter - @MORTGAGE_BC

 

   * Rates are subject to change and Lenders approval
 ** Payments based on a 35 year amortization and monthly payments
 If you would like to be removed for our weekly rate sheet mailing, please reply to email asking to be taken off list
Posted by Brian O'Reilly | 0 Comments
Thursday, February 11, 2010 11:11 AM

Home Buyers & Sellers

Posted by Brian O'Reilly | 0 Comments
Thursday, February 11, 2010 10:30 AM

BCREA Jan. 2010 News Release

For the complete news release, including detailed statistics, follow this link: www.bcrea.bc.ca/news_room/2010-01.pdf.

For immediate release

BC Home Sales Moderate in January

Vancouver, BC – February 11, 2010. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 118 per cent to 4,619 units in January compared to the same month last year. On a seasonally adjusted basis, MLS® residential sales in the province declined 16 per cent last month compared to December 2009.

“Home sales in the province eased in January as a result of waning pent-up demand and eroded affordability,” said Cameron Muir, BCREA Chief Economist. “While low mortgage interest rates will continue to entice many home buyers through the spring market, consumer demand is expected to moderate from its frenetic year-end pace."

The BC residential sales dollar volume increased 160 per cent to $2.27 billion in January compared to the same period last year. The average MLS® residential price climbed 19 per cent to $491,571 over the same period.

"Upward pressure on home prices, particularly in Victoria, Vancouver and the Fraser Valley, is beginning to slow as fewer home sales and a larger inventory reduce the chance of multiple offers,” added Muir.

-30-

For more information, please contact: 

Cameron MuirDamian Stathonikos
Chief EconomistDirector of Communications and Public Affairs
Direct: 604.742.2780Direct: 604.742.2793
Mobile: 778.229.1884Mobile: 778.990.1320
Email: cmuir@bcrea.bc.caEmail: dstathonikos@bcrea.bc.ca

BCREA represents 12 member real estate boards and their approximately 17,500 REALTORS® on all provincial issues, providing an extensive communications network, standard forms, economic research and analysis, government relations, applied practice courses and Continuing Professional Education (cpe).

To demonstrate the profession’s commitment to improving Quality of Life in BC communities, BCREA supports growth that encourages economic vitality, provides housing opportunities, respects the environment and builds communities with good schools and safe neighbourhoods.

For detailed statistical information, contact your local real estate board. MLS® is a cooperative marketing system used only by Canada’s real estate boards to ensure maximum exposure of properties listed for sale.

To change your email address or subscribe to more BCREA publications, click here.

Posted by Brian O'Reilly | 0 Comments
Thursday, February 11, 2010 9:51 AM

Mortgage Rates - Feb. 8, 2010

CREATIVE MORTGAGECORP.

 

February 8, 2010 - Mortgage News and Rates

  
Skeptical of a Recovery?
Economic recoveries do not occur overnight. An economy is considered to be in a recession when there are two or more consecutive quarters of negative growth. To get out of a recession the opposite has to occur which is 2 consecutive quarters of positive growth. The numbers haven't officially come out for the fourth quarter in Canada, but there is a strong case to be made for the growth to be in the 2.3% to 2.6% range. With a strong start to the 2010 year, many financial analysts and economists see the economy growing by even a larger amount in the first quarter. This could ultimately lead to the Bank of Canada raising their prime rate to help combat any fears of inflation beyond the 3% threshold.    http://www.financialpost.com/story.html?id=2499487
Job Growth = Economic Recovery?
One of the most important indicators for economic recovery, unemplyment numbers had a reduction in January. The 43,000 jobs that were added last month beat more estimates from economists which will help aide a reduction in the unemployment rate to 8.3% nation wide. When jobs are created, disposable income is increased which in turn allows consumers to pay their debt off and purchase new materials such as cars and houses. Positive unemployment rates triggers a waterfall effect by stimulating through economy through increased consumer spending. When consumer spending increases, it also increases demand for raw materials (oil, gold, lumber, etc.) and manufactured products (auto, consumer goods, etc.).  http://www.financialpost.com/news-sectors/economy/story.html?id=2525962
  
Canada's Reputable Mortgage Brokers
In Canada, the useage of mortgage brokers by the general public is a slow methodical process. We are slowly educating consumers that we are the way to go when it comes to mortgages. In the US, the exact opposite is occurring. In 2006, 65% of all mortgages were done through mortgage brokers and in 2009 that total dropped to 15%. The lack of government regulation in the US mortgage industry lead to frivolous lending practices by mortgage brokers. However, in Canada the regulations have been much stringent over the years which has helped Canada steer clear of a massive housing correction.   http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2010/02/us-broker-share-collapses.html
Frustrated with your clients not being pre-approved? 

Have them contact us for a quick pre-approval so that you never have a deal fall through because of financing. 

We Value Your Clients:

Our main objective in working with your clients is to educate them on their financing options as well as provide them with adequate financing to help them purchase their home, investment or vacation property. We help clients see what they are capable of affording based on the rates we are able to offer. With our ability to fund mortgages with a high efficiency, we are able to pass along special rates that lenders offer us to your clients. We have the ability to set up mortgages all across Canada.

If you know of anyone who would enjoy reading our weekly Newsletter and Rate Sheet, please let us know and we can add their email address to our growing list.

 

BROKER’S BEST RATES

TERM
RATE*
PMT/$1,000**
APR
1 YEAR CLOSED
2.25%
$3.44/$1,000
2.26%
2 YEAR CLOSED
2.85%
$3.76/$1,000
2.87%
3 YEAR CLOSED
3.25%
$3.98/$1,000
3.28%
5 YEAR CLOSED
3.69%
$4.23/$1,000
3.72%
7 YEAR CLOSED
5.25%
$5.17/$1,000
5.32%
10 YEAR CLOSED
5.35%
$5.23/$1,000
5.42%
3 YEAR VARIABLE
PRIME - 0.30%
$3.28/$1,000
1.96%
5 YEAR VARIABLE
PRIME - 0.25%
$3.31/$1,000
2.01%

PRIME RATE 2.25%
For more information give us a call
              
Shaun Pierce, AMP                                                  Lesley Pierce, AMP
Mortgage Consultant                                                  Mortgage Consultant              
(250) 717 – 8949 (Ext. 102)                                       (250) 717 – 8949 (Ext. 103)
spierce@creativemortgage.ca                                  lpierce@creativemortgage.ca
Paul Cescon, BBA
Mortgage Consultant
(250) 717 – 8949 (Ext. 101)

For more information, visit our website www.creativemortgage.ca   

Follow us on Twitter - @MORTGAGE_BC
   * Rates are subject to change and Lenders approval
 ** Payments based on a 35 year amortization and monthly payments
 If you would like to be removed for our weekly rate sheet mailing, please reply to email asking to be taken off list
Posted by Brian O'Reilly | 0 Comments
Monday, February 01, 2010 9:02 AM

Mortgage News and Rates - February 1, 2010

   

 CREATIVE MORTGAGECORP.

 

February 1, 2010 - Mortgage News and Rates

  
Rates Hikes Pushed Away
More and more financial articles are standing behind the Bank of Canada's decision to not raise interest rates in Canada too quickly. The Canadian economy still has not shown consistent enough economic figures from month to month to prove to the Bank of Canada that the economy is becoming stronger. For example, Novembers job numbers were very impressive and a good positive sign for our economy but as we rolled into December, the job and Consumer Price Index (CPI) numbers were below anticipated expectations. It is not a matter of if interest rates are going to rise but rather when they are. One of the main reasons for wanting to raise interest rates is to help temper too much growth in the Canadian economy as it will lead to higher prices (aka. an increase in the Consumer Price Index).    http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2010/01/rate-hike-predictions-pushed-back-slightly.html
Buying a Home - 10 Steps
When it comes to purchasing a home or investment property, sometimes your clients can become overwhelmed with the real estate jargon or the money lending process. CHMC has created a simple yet effective webpage that can walk your clients through the 10 steps of homebuying. Not all of them may be relevant to their current situation but it may help shed light on certain situations for them. A lot of the time when purchasers are looking at properties, they do not understand all the small costs that can be associated with a property such as an inspection, a lawyer fee or in some cases title insurance. We encourage you to pass the link we have attached to this paragraph  on to your clients. It may eleviate the amount of questions your client  may have during the process of  purchasing a new home.  http://www.cmhc-schl.gc.ca/en/co/buho/hostst/index.cfm
  
Fixed vs. Variable 
Since inception of our weekly rate sheet we know we have included a couple articles explaining the difference but this is a topic that can be discussed with many different pro's and con's. Rob Carrick of the Globe and Mail presents a different view than what we have written about in the past. He takes a view of looking at some of the intangibles that cannot be measured by numbers such as the comfort of knowing what your mortgage rate will be for 5, 7 or 10 years. There is also a quick break down of the difference when it comes to the fees if you decide to break your current mortgage contract in order to renew at a lower rate. Variable rate mortgages are generally less expensive if you want to payout your term than a fixed rate mortgage. The  normal industry penalty for a variable rate is usually 3 months  interest based on your balance and variable rate at the time of payout.  http://www.theglobeandmail.com/globe-investor/personal-finance/variable-or-fixed-both-options-have-merit/article1446994/
Yields All Over the Map
If you actively read our rate sheet you more than likely have picked up on our somewhat varying opinion on where we see interest rates  going short term. Long term we have no doubt that we will begin to see rates rise. This has a lot to do with our general philosophy that as the facts change so to will our opinions. The Candian economy is fragile with economic data changing from month to month. We have attached a good article that explains how there have been violent swings in the interest rate yields which ultimately affect the rates we can offer.  http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2010/01/yields-are-all-over-the-map.html
Frustrated with your clients not being pre-approved? 

Have them contact us for a quick pre-approval so that you never have a deal fall through because of financing. 

What Value Your Clients:

Our main objective in working with your clients is to educate them on their financing options as well as provide them with adequate financing to help them purchase their home, investment or vacation property. We help clients see what they are capable of affording based on the rates we are able to offer. With our ability to fund mortgages with a high efficiency, we are able to pass along special rates that lenders offer us to your clients. We have the ability to set up mortgages all across Canada.

If you know of anyone who would enjoy reading our weekly Newsletter and Rate Sheet, please let us know and we can add their email address to our growing list.

 

BROKER’S BEST RATES

TERM
RATE*
PMT/$1,000**
APR
1 YEAR CLOSED
2.25%
$3.44/$1,000
2.26%
2 YEAR CLOSED
2.85%
$3.76/$1,000
2.87%
3 YEAR CLOSED
3.25%
$3.98/$1,000
3.28%
5 YEAR CLOSED
3.75%
$4.26/$1,000
3.79%
7 YEAR CLOSED
5.25%
$5.17/$1,000
5.32%
10 YEAR CLOSED
5.35%
$5.23/$1,000
5.42%
3 YEAR VARIABLE
PRIME - 0.30%
$3.28/$1,000
1.96%
5 YEAR VARIABLE
PRIME - 0.25%
$3.31/$1,000
2.01%

PRIME RATE 2.25%
For more information give us a call
              
Shaun Pierce, AMP                                                  Lesley Pierce, AMP
Mortgage Consultant                                                  Mortgage Consultant              
(250) 717 – 8949 (Ext. 102)                                       (250) 717 – 8949 (Ext. 103)
spierce@creativemortgage.ca                                  lpierce@creativemortgage.ca
Paul Cescon, BBA
Mortgage Consultant
(250) 717 – 8949 (Ext. 101)

For more information, visit our website www.creativemortgage.ca   

Follow us on Twitter - @MORTGAGE_BC
   * Rates are subject to change and Lenders approval
 ** Payments based on a 35 year amortization and monthly payments
 If you would like to be removed for our weekly rate sheet mailing, please reply to email asking to be taken off list
Posted by Brian O'Reilly | 0 Comments
Sunday, January 31, 2010 11:23 AM

Advertising -- Where to Advertise


Advertising

I am often asked by Sellers and Buyers alike about advertising and where is the best place for them to search up-to-date active listings for my area, price and criteria.

Answer is only two places. In print form the Realtor Review tabloid or and in web form is www.realtor.ca  In both of these you will see up-to-date Listings of all types by location, price, sub area,  etc. etc. . . but web form is much more expansive than print form can ever be. Each individual  listing will also show a REALTORS® personal web site (if they have one) and in Realtor.ca just click on and your their.

What does a Seller typically want:
to have there home viewed in advertising form by as many buyer prospects globally as possible, then inspect there home, THEN have a Buyer  buy it at an acceptable price, preferrably in very short order. 

What does a Buyer typically want 
to view your advertised home  in an vertual tour, view all the rooms, view back and front yards, all specifications ie: room sizes, taxes, age of roof, furnace, h/w tank, how long on market, Asking price, view PDS, title, and pictures of neighbourhood, and what kind of neighbours do you have . . . . .Then  either eliminate it or  put it on the hit list to inspect  if it rates with there home buying criteria.

 Types of ads, Print, TV, Radio, Web
Facts.
  
Print Advertising newspapers  carry less than2% of all MLS Listings. Can't get the same expansive as web based ads. Definitely not a buyer choice of options.  Mmarginal results.. . in short it doesn't work any more.

Glitzy magazine in full colour is the same. You also get to meet the latest voted in #1 Realtor of the month/year whatever. He be the one who advertises the most in the magazine. It's called the self congratulating applause . . . .  no comment

TV/RADIO advertising both are out of business for listing ads. Realtor/Brokerage self promotion only. 

WEB advertising  Now were talking. FACT: 75% or more of all buyer ad calls come from the web. Buyers can view all  their wants,  even globally,  If any REALTOR disagrees then he or she is not utilizing the web properly. Web advertising has to be done with great care though. The old adage holds true, Sell the Sizzle NOT the Steak. Perpetual tours can be a killer in Web pages as they do just that "Sell the Steak not the Sizzle",  no need for buyer to inspect the home he's seen everything . .next . .  . didn't even make the short list. Again great care is needed. The goal of any REALTOR is to generate interest to the buyer as eventually the Buyer will need a REALTOR.

Answer is obvious only two places. In print form the Realtor Review tabloid or and in web form is www.realtor.ca  In both of these you will see up-to-date Listings of all types by location, price, sub area,  etc. etc. . . but web form is much more expansive than print, TV or radio form can ever be. Each individual  listing will also show a REALTORS® personal web site (if they have one) and in www.realtor.ca just click on and your their.

Where was the web 25 years ago when we as REALTORS could only dream of such a thing. But hold on TV was starting with list ads about then, we actually thought that was the end all and be all of advertising.  

Short of renting  all the space in every media world wide neither of the Seller and Buyer wants  can physically happen.  Except  Realtor Review which is a local listing direction ad newspaper to send buyers to a REALTORS web page. This is all The Realtor Review and www.realtor.ca was intended for and it is up-to-date bi-weekly or monthly depending on dead line.

I hope you enjoyed this article. Please phone or e-mail me with any comments or thoughts on the subject is alway appreciated.

Posted by Brian O'Reilly | 0 Comments
Sunday, January 31, 2010 10:25 AM

Mortgage Rates as of January 25, 2010

   

 CREATIVE MORTGAGECORP.
January 25, 2010 - Mortgage News and Rates
  
Rates Stay Flat
Last Tuesday the Bank of Canada met for the first time in the New Year. Even though the economy is recovering much quicker than the Bank of Canada had originally anticipated in October, the economy still remains fragile. There are two predominant reasons for this, a high Canadian dollar and continued weak demand from the US.  Overall, the Bank of Canada feels that the economy is relatively balanced with a little more weight tilting towards inflation which is largely caused by the extremely low interest rates.  http://www.financialpost.com/news-sectors/economy/story.html?id=2458992
No Housing Bubble
The Bank of Canada has come out and said that we are not currently experiencing a housing bubble even though we are close to the housing prices that peaked in 2008. The Bank of Canada claims that the housing recovery which we are currently encountering is due more to temporary factors. They view the housing recovery as an essential key to Canada's overall economy recovering. The fact that they have taken notice of the quick rise in housing and yet move to quell any fears of a rate hike shows that they are truly aware of the situation but are against raising rates to solely calm the housing market. The Bank of Canada fears that an interest rate hike will hurt the economy more than it will help it. This is why there appears to be a better chance of the government intervening on the housing market by increasing regulations such as larger down payments and shorter amortizations on mortgages, than the Bank of Canada stepping in and raising rates. http://www.reuters.com/article/idUSN1116060820100111?type=usDollarRpt
Mortgage Broker Demand
More and more Canadian homebuyers are turning to mortgage brokers to help them obtain a mortgage. In the past, especially within the older generations, if someone required a mortgage they would go to their banking institution and accept whatever rate was offered to them. If they really didn't like the rate, they would go from bank to bank in search of the best rate. This is a waste of the consumer’s important time and in addition may hamper their credit score as all Banks will pull a credit bureau in order to give an approval to the client.  What makes us so attractive compared to the typical bank is that we work for our clients and not for the lenders. We search to find the best possible rate and lender that best suits each client’s unique situation.  The major banks also tend to only lend to the clients who have perfect credit scores, high salaries and large down payments. For all the other homebuyers who do not meet the perfect criteria required, we can help them find a lender who will work with the client’s strengths to assist them in obtaining their mortgage.  http://www.mortgagebrokernews.ca/news/43523/details.aspx
US Mortgage Defaults
Much has come from the real estate meltdown in the US. Basically it was the epicentre of the global credit crisis and eventual meltdown of easy credit. We have attached an interesting article from the Wall Street Journal which looks at the US government’s  different strategies to try to correct the negative equity that homeowners currently have, which will allow more of the consumers to keep their homes rather than defaulting into foreclosure.  A startling message at the end shows how in the past people who defaulted on their mortgages were being shunned and now they are being viewed as doing the right thing. http://newzfor.me/news/3664178.aspx
Prep Buyers for 2010
Here is a great article from the Globe and Mail showing what your clients should be doing when it comes to purchasing real estate in 2010.  http://www.theglobeandmail.com/real-estate/home-buyer-prep-for-2010/article1431196/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+TheGlobeAndMail-RealEstate+(The+Globe+and+Mail+-+Real+Estate+News)

 

What We Do For Your Valued Clients:

Our main objective in working with your clients is to educate them on their financing options as well as provide them with adequate financing to help them purchase their home, investment or vacation property. We help clients see what they are capable of affording based on the rates we are able to offer. With our ability to fund rates with a high efficiency, we are able to pass along special rates that lenders offer us to your clients. We have the ability to set up mortgages all across Canada.

 If you know of anyone who would enjoy reading our weekly Newsletter and Rate Sheet, please let us know and we can add their email address to our growing list.

Our 5 year fixed rate sits at 3.75% which dropped again this week. The variable ratealso dropped this week and now sit at Prime - 0.25% (2.0%) on a 5 year term and Prime - 0.30% (1.95%) on a 3 year term. 

 

BROKER’S BEST RATES

TERM
RATE*
PMT/$1,000**
APR
1 YEAR CLOSED
2.25%
$3.44/$1,000
2.26%
2 YEAR CLOSED
2.85%
$3.76/$1,000
2.87%
3 YEAR CLOSED
3.25%
$3.98/$1,000
3.28%
5 YEAR CLOSED
3.75%
$4.26/$1,000
3.79%
7 YEAR CLOSED
5.25%
$5.17/$1,000
5.32%
10 YEAR CLOSED
5.35%
$5.23/$1,000
5.42%
3 YEAR VARIABLE
PRIME - 0.30%
$3.28/$1,000
1.96%
5 YEAR VARIABLE
PRIME - 0.25%
$3.31/$1,000
2.01%

PRIME RATE 2.25%
For more information give us a call
              
Shaun Pierce, AMP                                                  Lesley Pierce, AMP
Mortgage Consultant                                                  Mortgage Consultant              
(250) 717 – 8949 (Ext. 102)                                       (250) 717 – 8949 (Ext. 103)
spierce@creativemortgage.ca                                  lpierce@creativemortgage.ca
Paul Cescon, BBA
Mortgage Consultant
(250) 717 – 8949 (Ext. 101)

For more information, visit our website www.creativemortgage.ca   

Follow us on Twitter - @MORTGAGE_BC
   * Rates are subject to change and Lenders approval
 ** Payments based on a 35 year amortization and monthly payments
 If you would like to be removed for our weekly rate sheet mailing, please reply to email asking to be taken off list
Posted by Brian O'Reilly | 0 Comments
Monday, January 04, 2010 10:21 AM

Mortgage Services

  

CREATIVE MORTGAGE CORP.

January 4, 2010 - HAPPY NEW YEARS!!!!!

  

Rates are rising
Well what we have been preaching here are Creative Mortgage for the last few months have finally come to fruition. Street Capital became the first of our lenders to raise their rates, and raise their rates they did. Their 5 year fixed rate term went from 3.89% all the way up to 4.44% on news that when the Bank of Canada meets in the 3rd week of January (19th), there will discussions of raising rates. This is not to say that every lender is going to raise theur rates but there is a pack mentality that if one raises their rates, the majority of the lenders tend to follow.
New Lending Rules?
Jim Flaherty ruffled some feathers last week when he mentioned that Canadian mortgage lenders should tighten their lending requirements on their amortization lengths as well as the minimum down payments required. There are speculators out there who believe that the amortization maximum will be changed from 35 years to 30 years and the downpayment from the minimum 5% up to possibly 10%. This could have devasting effects on the real estate market as it will make it tougher for first time homebuyers to save up the required amount for a down payment. First time home buyers tend to push the market so as they slow down so to will the entire housing market. http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2009/12/1030-mortgage-rules.html
Canadian dollar Rising
The Canadian dollar has risen to a 3 week high on news that the Bank of Canada is considering raising their interest rates earlier than expected to combat the rapid economic recovery that Canada is currently experiencing. Keep a note in your calendars for January 19th which is the next meeting the Bank of Canada has planned.  http://www.financialpost.com/story.html?id=2375316

What We Do For Your Valued Clients:

Our main objective in working with your clients is to educate them on their financing options as well as provide them with adequate financing to help them purchase their home, investment or vacation property. We help clients see what they are capable of affording based on the rates we are able to offer. With our ability to fund rates with a high efficiency, we are able to pass along special rates that lenders offer us to your clients.

 If you know of anyone who would enjoy reading our weekly Newsletter and Rate Sheet, please let us know and we can add their email address to our growing list.

Our 5 year fixed rate sits at 3.89% which continues to sit well below historical lows. Our best variable rate is currently at Prime - 0.25% (2.0%) on a 3 year term.  With rates set to eventually rise  in 2010, we will see prime rate rise to combat any fears of inflation.

 

BROKER’S BEST RATES

TERM

RATE*

PMT/$1,000**

APR

1 YEAR CLOSED

2.25%

$3.44/$1,000

2.26%

2 YEAR CLOSED

2.85%

$3.76/$1,000

2.87%

3 YEAR CLOSED

3.25%

$3.98/$1,000

3.28%

5 YEAR CLOSED

3.89%

$4.34/$1,000

3.93%

7 YEAR CLOSED

5.25%

$5.17/$1,000

5.32%

10 YEAR CLOSED

5.35%

$5.23/$1,000

5.42%

3 YEAR VARIABLE

PRIME - 0.25%

$3.31/$1,000

2.01%

5 YEAR VARIABLE

PRIME - 0.20%

$3.34/$1,000

2.06%

PRIME RATE 2.25%

For more information give us a call

              

Shaun Pierce, AMP                                                    Lesley Pierce, AMP

Mortgage Consultant                                                          Mortgage Consultant              

(250) 717 – 8949 (Ext. 102)                                                (250) 717 – 8949 (Ext. 103)

spierce@creativemortgage.ca                                  lpierce@creativemortgage.ca

 

Paul Cescon, BBA

Mortgage Consultant

(250) 717 – 8949 (Ext. 101)

paul@creativemortgage.ca

  For more information, visit our website www.creativemortgage.ca   

Visit join our Facebook Group http://www.facebook.com/group.php?gid=137244795963 

Follow us on Twitter - @MORTGAGE_BC

 

   * Rates are subject to change and Lenders approval

 ** Payments based on a 35 year amortization and monthly payments

 

 If you would like to be removed for our weekly rate sheet mailing, please reply to email asking to be taken off list

 

 

Posted by Brian O'Reilly | 0 Comments
Monday, December 21, 2009 9:11 AM

Dec. 18, 2009 -- Mortgage News and Rates

  

CREATIVE MORTGAGE CORP.

December 18, 2009 - Mortgage News and Rate 

  

Future Rate Hikes?
Most if not all economits will agree that at some point we are going to see interest/mortgage rates return to normal levels. Inflation in November rose to 1% which remains short of the 2% target that the Bank of Canada is aiming for. They have however committed to keep rates where they are until mid 2010. In the US, the Federal Reserve came out and reinterated they stance to keep rates low. Essentially, unless the US start raising their rates, we will not see out rates start to rise dramatically based on Canada's fears that if our dollar rises too quickly it will hinder our exports to the US.  http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2009/12/future-rate-predictions.html
Job Rates Improving?
Canada is expecting job rates to increase in the new year by a larger rate than any of the other G7 nations. Job creation, especially of this magnitude points towards rapid economic growth. As we all know in the Real Estate industry, job creation leads to an increase is market activity. Also, with stability in the economy, it may entice buyers who have been sitting on the sidelines to start entering the market. http://www.theglobeandmail.com/report-on-business/job-creation-to-pick-up-in-2010-bank-says/article1403821/
Mortgage Term Refresher?
It never hurts to have a reminder of what some of the different rates we can offer to your clients are. The attached article from MortgageTrends is a great informative piece that you can forward on to your clients which will help them have a general understanding of the different mortgage terms before they head to mortgage broker like ourselves. http://www.canadianmortgagetrends.com/canadian_mortgage_trends/mortgage-term-review.html
Canadian Mortgages Safe
CIBC released a report last week stating that even with mortgage rates being as low as they currently have been, we are no where near ending up in a housing bubble similar to what the US has been experiencing over the course of the past two years. Part of  the reason is because homeowners have larger amounts of equity in their properties. Attached is an articles briefly explaining why that is. http://www.mortgagebrokernews.ca/news/39382/details.aspx 

What We Do For Your Valued Clients:

Our main objective in working with your clients is to educate them on their financing options as well as provide them with adequate financing to help them purchase their home, investment or vacation property. We help clients see what they are capable of affording based on the rates we are able to offer. With our ability to fund rates with a high efficiency, we are able to pass along special rates that lenders offer us to your clients.

 If you know of anyone who would enjoy reading our weekly Newsletter and Rate Sheet, please let us know and we can add their email address to our growing list.

Our 5 year fixed rate sits at 3.89% which continues to sit well below historical lows. Our best variable rate is currently at Prime - 0.25% (2.0%) on a 3 year term.  With rates set to eventually rise  in 2010, we will see prime rate rise to combat any fears of inflation.

 

BROKER’S BEST RATES

TERM

RATE*

PMT/$1,000**

APR

1 YEAR CLOSED

2.25%

$3.44/$1,000

2.26%

2 YEAR CLOSED

2.85%

$3.76/$1,000

2.87%

3 YEAR CLOSED

3.25%

$3.98/$1,000

3.28%

5 YEAR CLOSED

3.89%*

$4.34/$1,000

3.93%

7 YEAR CLOSED

5.25%

$5.17/$1,000

5.32%

10 YEAR CLOSED

5.35%

$5.23/$1,000

5.42%

3 YEAR VARIABLE

PRIME - 0.25%

$3.31/$1,000

2.01%

5 YEAR VARIABLE

PRIME - 0.20%

$3.34/$1,000

2.06%

PRIME RATE 2.25%

For more information give us a call

              

Shaun Pierce, AMP                                                    Lesley Pierce, AMP

Mortgage Consultant                                                          Mortgage Consultant              

(250) 717 – 8949 (Ext. 102)                                                (250) 717 – 8949 (Ext. 103)

spierce@creativemortgage.ca                                  lpierce@creativemortgage.ca

 

Paul Cescon, BBA

Mortgage Consultant

(250) 717 – 8949 (Ext. 101)

paul@creativemortgage.ca

  For more information, visit our website www.creativemortgage.ca   

Visit join our Facebook Group http://www.facebook.com/group.php?gid=137244795963 

Follow us on Twitter - @MORTGAGE_BC

 

   * Rates are subject to change and Lenders approval

 ** Payments based on a 35 year amortization and monthly payments

 

 If you would like to be removed for our weekly rate sheet mailing, please reply to email asking to be taken off list

 

 

Posted by Brian O'Reilly | 0 Comments
Monday, March 09, 2009 8:39 AM

Mortgage Rates as/of Feb 24, 2009

 


BROKER’S BEST RATES

FOR

February 24, 2009


RATE PMT/$1,000**


1 YEAR CLOSED 3.25% $3.98/$1,000

2 YEAR CLOSED 3.90%* $4.35/$1,000

3 YEAR CLOSED 3.95%* $4.38/$1,000

4 YEAR CLOSED 4.25%* $4.56/$1,000

5 YEAR CLOSED 4.34%* $4.61/$1,000

6 YEAR CLOSED 5.40% $5.27/$1,000

7 YEAR CLOSED 5.60% $5.39/$1,000

10 YEAR CLOSED 6.20% $5.78/$1,000

PRIME RATE 3.00%

Variable Rate 3.80% $4.31/$1,000

* Indicates rate change since last update

** Payments based on a 35 year amortization


For more information give us a call

@ 250-717-8949

OR

Lesley Pierce @ 250-317-3850

Shaun Pierce @ 250-878-8977

Posted by Brian O'Reilly | 0 Comments
Monday, March 09, 2009 8:20 AM

468 Klassen Road in Rutland North is Sold!

Sold

Rutland North, Rutland  -  The 2 story at 468 Klassen Road has been sold.

Property information

Posted by Brian O'Reilly | 0 Comments
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Monday, March 09, 2009 8:15 AM

2 Story For Sale in Kelowna South

622 Wardlaw
1/2 Duplex with Suite

• 2,778 sq. ft., 4 bath, 4 bdrm 2 story "Grade level Entry" - MLS® $589,000

Kelowna South, Kelowna  -  This 1/2 duplex has a suite and is approx. 2 years old. It is located in a demand area of Kelowna, close to Kelowna General Hospital and considered close-in to all amenities. Views from decks are to the North/East and North /West. The quality and finishing is top notch and of course can only be seen to be fully appreciated. It has hardwood and ceramic tile floors,3 bdrms. & 3 .5 baths on main, laundry both levels, main floor and suite appliances included (10), larger windows with venetian blinds to take in the views, 27' X 10" decks & patios with BBQ hook-ups, 2f/p's, central a/c, security, landscaped & irrigated, wired for hot tub on deck, hi-efficiency furnace, 30 year shingled roof, hardi-plank esterior walls,vaulted ceiling in main flr great room, fenced, parks 4 cars, both kitchen stoves are gas.

Property information

Posted by Brian O'Reilly | 0 Comments
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