Welcome to Brian O'Reilly Kelowna Real Estate Sign in | Help
Wednesday, June 30, 2010 8:27 AM

About Pre-Home Inspection

 
Spacer Image
Spacer Image
Spacer Image
Pillar To Post: The Home Of Home Inspection - Avoid Surprises with a Pre-Listing Inspection
SELL HOUSES FASTER WITH A PRE-LISTING HOME INSPECTION
Slow markets are the bane of a realtor's existence. Clients wonder in an expressive way why their home is not selling, let alone why the slow number of house visits by prospective buyers. Prelisting inspections by Pillar To Post help you excite the buying public to pay a visit in a unique way - a Professional third party report with colour photos hilighting the benefits of the home - and its fully electronically transmissable. Place the report on your website or email the report in a prep marketing piece. That makes your listing FIRST on the street AND you are demonstrating your value to a wary client. 

As an added bonus, a pre-listing home inspection can uncover previously unknown problems - major and minor - allowing sellers the opportunity to make repairs or replacements as needed. By addressing these issues before the home goes on the market, you can list a home with confidence in its condition and will have a better chance of maximizing its value. Being aware of issues in advance will also allow for disclosure of problems when selling, which can result in cleaner offers and a smoother transaction for both parties AND FASTER SALES!
As a real estate professional, you invest a great deal of time, money, and energy to market your listings. Between advertising, open houses, and meeting with clients, you need to get a good return on that investment. Don't be caught unaware of problems that could seriously undermine your dedicated efforts to sell a home. Having a home inspected before you list is more important than ever in this slow market, so make the most of your time and effort by getting a Pillar To Post home inspection prior to listing.
Give us a call and we'll show you the benefits firsthand. 
WHY PILLAR TO POST?
  • The Pillar To Post Inspection Report is generated on site at the completion of the inspection, so your client won't have to wait for the results. We send you the colour electronic version to place on your website or email to prospective clients. 
  • Our inspection reports are also available on line from the Pillar To Post web site, providing easy access for clients out of the area.
  • All Pillar To Post inspectors carry E&O insurance to protect the referring agent
  • As North America's leading home inspection company, Pillar To Post is committed to providing the highest quality service to real estate professionals and their clients
  • For more information about home inspection or to schedule a home inspection call us:
Craig Hostland RHI Lic # 47075

Craig.Hostland@pillartopost.com
www.pillartopost.com

765-4134  558-1160  833-1152

Spacer Image
Safe Unsubscribe
This email was sent to brianoreilly@shaw.ca by craig.hostland@pillartopost.com.
Pillar to Post | Kelowna Head Office | # 103 3677 hwy 97N | Kelowna | BC | V1X 5C3 | Canada
Posted by Brian O'Reilly | 0 Comments
Saturday, June 26, 2010 10:35 AM

Mortgage Rates as of June 25, 2010

CREATIVE MORTGAGE corp.

June 25, 2010- Mortgage News and Rates 

Inflation Fears
One of the main concerns for the Bank of Canada is the fear of the Canadian economy growing too quickly. Low interest rates have spurred the economic rebound which has lead to more positive growth numbers in our economy. By increasing interest rates the government is attempting to slow down growth caused by keeping interest rates so low for such an extended period of time. The Bank of Canada generally likes to raise rates sooner rather than later because it generally takes 6 months for interest rate hikes to fully affect the economy. If consumers continue to rack up debt at these low interest levels, the fear becomes what happens with the debt payments when interest rates go up and return to a more sustainable level.  Even with that weighing on the Bank of Canada, they are still hinting towards a potential rate hike when they meet again on July 20th. The financial market has priced in an 80% chance of a potential rate hike at the next meeting based off of the upward movement of bond prices. This is even after the fact that the Governor of the Bank of Canada, Mark Charney said after the first rate hike there was going to be no pre-ordained schedule for following rate hikes. Rate hikes to the Bank of Canada's key lending rate affects the price on variable rate mortgages more so than fixed rate mortgages.        http://www.financialpost.com/news/Rate+hike+still+expected+despite+tame+inflation/3185559/story.html
Mortgage Market Primer
For any of you out there who are always finding the news on mortgage information conflicting, here is an extensive break down of some of the mortgage numbers for Canada. The attached article includes a "Coles Notes" version of the extensive 18 page report created by the TD bank. The report mentions the various ways that funds are raised for mortgages in Canada, how they are backed by insurers and how the mortgage rates are determined by mortgage lenders. If you have any questions with regards to the information contained in the attachment, we encourage you to contact us. Of the plethora of numbers they list, some of the important numbers to note include the rate of mortgage delinquencies in Canada which currently stands at 0.44%, or roughly $18,000 homes which imply owners are 3 mortgage payments behind. Only 1% of homes have negative equity and less than 4% have less than 5% equity in their properties. As for home equity withdrawals, home owners continues to find other means to support their discretionary spending and are still disinclined to use the equity they have built up in their homefor repayment of other debt.  http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2010/06/mortgage-market-primer-td.html
Downpayment Saving
Many clients come to us looking to qualify for a mortgage. Often they have  the necessary income to qualify for the size of mortgage they are looking for but are lacking a downpayment. In order to save for a downpayment, buyers need to be extremely disciplined. We have attached an article which breaks down the 5 steps recommended in order to save for a down payment. The fourth example talks about an IRA savings plan for first time homebuyers which is the US equivalent of the Canadian First Time Home Buyers Plan (HBP) which can be obtained by pulling funds out of your RRSP. A total of $50,000 may be pulled out of an RRSP ($25K per spouse) which can be repaid through contributions over the course of 15 years.      http://www.moneyunder30.com/down-payment-saving-five-steps-to-save-for-your-first-home
 Our Value
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 e-mail address to our growing list.

BROKER'S BEST RATES

TERM

RATE*

PMT/$1,000**

APR

1 YEAR CLOSED

2.60%

$3.62/$1,000

2.62%

2 YEAR CLOSED

3.20%

$3.95/$1,000

3.22%

3 YEAR CLOSED

3.49%

$4.11/$1,000

3.52%

5 YEAR CLOSED

4.25%

$4.56/$1,000

4.30%

7 YEAR CLOSED

5.25%

$5.17/$1,000

5.32%

10 YEAR CLOSED

5.59%

$5.39/$1,000

5.67%

3 YEAR VARIABLE

PRIME - 0.65%

$3.19$1,000

1.87%

5 YEAR VARIABLE

PRIME - 0.50%

$3.24/$1,000

2.02%

PRIME RATE 2.50%
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
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
Friday, June 18, 2010 1:35 PM

Mortgage Rates as of June 18, 2010

CREATIVE MORTGAGE corp.

June 18, 2010- Mortgage News and Rates 

 

Another Rate Hike?
Another rate hike is not necessarily a given says the Bank of Canada's governor, Mark Carney. With the uncertainty that is persisting due to the European credit markets, it makes their decision in the coming months to raise rates a little more difficult. Even though we are seeing strong growth numbers from Canada, such as job creation, it will not necessarily lead to the Bank of Canada raising their lending rate for a second time within a month. The uneven global recovery may lead to a less structured set of rate hikes says Mark Carney. The new mortgage rules  implemented in April are also helping to slow down the Canadian economy's growth to a more sustainable level. The Bank of Canada does not always need to implement monetary policies (raising interest rates) to slow down growth as proven by their  implementation of new fiscal policies (new mortgage rules) in order to calm inflationary fears.  http://www.theglobeandmail.com/report-on-business/economy/carney-hedges-on-another-rate-hike/article1606273/
Mortgage Check-Up
Your body is important to you and this is why on average, people go to their doctors office for a check up once a year. Aside from your health, your finances are an integral part of your life. Too often people become complacent with their finances, especially when it involves their mortgages. Reviewing your mortgage product once a year will help you understand what you are in and whether or not it is still the correct product for you. This could involve simply comparing what your current interest rate is compared to what you could obtain on a new mortgage. If you are locked into a 5 year mortgage with 3 years remaining at 5.50% and the current 3 year mortgages are in the 3.50% range, it sometimes makes sense to pay the penalty to get out of your existing mortgage contract. This may not always be the case but at least you are cognizant of what the current rates are especially in the year that your mortgage term is up for renewal.  Lately our clients having been coming back to us with their mortgage renewal notices from their existing lenders with rates far above the current rates we can offer them. Through simple educational newsletters to our clients, weare encouraging our clients not to always take the first rate offered. Make sure that you explore your mortgage options with us before you settle for the first rate being offered. http://www.financialpost.com/personal-finance/mortgage-centre/Maybe+your+mortgage+needs+check/3141368/story.html 
Variable Rate Rules
To this day we still have realtors and clients asking us what rate they will have to qualify at in order to obtain a variable rate mortgage. What has made the new rules so confusing to most, is that not every mortgage lender uses the same qualifying rates for conventional mortgages.  For a non-conventional mortgage (less that 20% downpayment), the qualifying rate is the same for all lendersand this is the Bank of Canada's 5 year posted rate (currently 5.99%). However, for  conventional mortgages, there are some lenders with different rules than others. For instance, some lenders will allow people applying for a conventional mortgage to qualify at the lenders 3 year fixed rate, which is substantially less than the Bank of Canada's posted rate. Out of the 6 major banks in Canada, only one will allow you to qualify at a 3 year fixed rate. Most of the mortgage lenders that allow our clients to qualify on their 3 year fixed rates can only be accessed through independent mortgage brokers. This is another reason why dealing with a mortgage broker such as us will give you more options as well as enable you to qualify at lower rates.  http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2010/06/variable-rate-rulebooks-differ.html
Rate Directions?
In order for us to give you an idea of where we see rates heading we first have to differentiate between variable and fixed rate mortgages. Variable rate mortgages are  based off of prime rate which is changed whenever the Bank of Canada decides to adjust the rate at which they lend to financial institutions. They raise rates in order to stop the economy from growing to quickly which essentially holds inflation in check. Fixed rates are based off of the spreads that mortgage lenders are looking for. As mentioned several times in the past, mortgage lenders will use the Bank of Canada's 5 year bond rates in order to calculate what they are willing to offer for their fixed rates. Different lenders require different size of spreads between the bond rates and what they can offer, as the spread is what decides what the lenders require in order to make a profit.

Until we start to see the European countries conform to the new regulations set forth in the austerity bill (bailout package) and lower their debt, we will see Canada’s bond rates continue to stay relatively low as any sort of market uncertainty tends to draw investor’s funds to safe haven investments such as Canadian bonds. So with relatively stable bond prices, we won’t see large increases in the fixed rate mortgages unless lenders decide to increase the size of the spreads  they are wanting. With Variable rate mortgages being controlled by prime rate, until our government is more assured that the European countries will be financially stable and not affect our countrys growth, their rate increases may take longer and be more spread out.

Our Value
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 e-mail address to our growing list.

BROKER'S BEST RATES

TERM

RATE*

PMT/$1,000**

APR

1 YEAR CLOSED

2.60%

$3.62/$1,000

2.62%

2 YEAR CLOSED

3.20%

$3.95/$1,000

3.22%

3 YEAR CLOSED

3.49%

$4.11/$1,000

3.52%

5 YEAR CLOSED

4.25%

$4.56/$1,000

4.30%

7 YEAR CLOSED

5.25%

$5.17/$1,000

5.32%

10 YEAR CLOSED

5.59%

$5.39/$1,000

5.67%

3 YEAR VARIABLE

PRIME - 0.65%

$3.19$1,000

1.87%

5 YEAR VARIABLE

PRIME - 0.50%

$3.24/$1,000

2.02%

PRIME RATE 2.50%
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
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, June 10, 2010 6:56 PM

Mortgage Rates as of June 4, 2010

CREATIVE MORTGAGE corp.

June 4, 2010- Mortgage News and Rates     

We Are Not the US
Foreclosures are a part of the housing market, and in Canada real estate foreclosures do exist. However our foreclosure rates do not even come close to the levels which we have seen in the US. The major reason for this is we have much stricter lending policies which we must adhere to in Canada. The mortgage regulation changes by the government on April 19th have made it even more difficult for speculators to enter the real estate market which at times can be detrimental to our industry. We may see drops in the real estate market as predicted by CREA but we most likely will not see the rate of foreclosures that the US is still experiencing due to our government’s ability to regulate the mortgage lending industry.  So although we may see some foreclosures due to market conditions, it is more likely to be an isolated event such as a struggling mining community and less to do with people getting mortgages that they cannot afford unlike  the US.     http://www.financialpost.com/personal-finance/mortgage-centre/story.html?id=3081970
Rates on the Move!!!
The much anticipated move from the Bank of Canada finally occurred this week withthe bank rate being raised  0.25% and is now  0.50% (Prime rate increased from 2.25% to 2.50%). This move does not come as a major surprise to many seeing as how the first quarters GDP growth rate came in at 6.1%, a rate which has not been seen since before the recession. Canada became the first of the G7 countries to raise their interest rate. Even though there is financial turmoil looming in Europe the Bank of Canada needed to raise their rates in order to keep inflation within their 2% target range.  The Bank of Canada went out of its way to reiterate that this first rate increase is not necessarily the start ofa relentless campaign to start raising rates.  http://www.financialpost.com/news-sectors/story.html?id=3096853
Credit Score Secrets
Sometimes home buyers applying for a mortgage hit a wall in the process when the lenders find out what their credit scores are. Mortgage lenders view an applicant’s credit score as one of the most important pieces in underwriting a mortgage. A person’s credit score is a measure of how well they handle the debt they currently have.  If you have too many different lines of credit with  high  balances outstanding,  it will definitely affect your credit score.   Missed payments and bankruptcies also severely affect your score. If your credit score is not at a tolerable level, more often than not conventional lenders will no longer consider  you an acceptable client. This in turn will force you to go to a secondary lender or even a private lender where rates are extraordinarily higher. If the rates are too high it may cause your application to have too high of a debt-to-service ratio and thus not qualify at all. The key is to manage all your debt accordingly.    http://ca.finance.yahoo.com/personal-finance/article/yfinance/1623/credit-score-secrets
Our Value
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 e-mail address to our growing list.

BROKER'S BEST RATES

TERM

RATE*

PMT/$1,000**

APR

1 YEAR CLOSED

2.60%

$3.62/$1,000

2.62%

2 YEAR CLOSED

3.20%

$3.95/$1,000

3.22%

3 YEAR CLOSED

3.65%

$4.20/$1,000

3.68%

5 YEAR CLOSED

4.25%

$4.56/$1,000

4.30%

7 YEAR CLOSED

5.25%

$5.17/$1,000

5.32%

10 YEAR CLOSED

5.59%

$5.39/$1,000

5.67%

3 YEAR VARIABLE

PRIME - 0.50%

$3.14$1,000

2.02%

5 YEAR VARIABLE

PRIME - 0.50%

$3.14/$1,000

2.02%

PRIME RATE 2.50%
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
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
Friday, June 04, 2010 7:59 AM

May 2010 Central Okanagan Real Estate STATS

May 2010 Central Okanagan Stats detailed stats are available for your viewing Under LINKS
Posted by Brian O'Reilly | 0 Comments
Monday, May 31, 2010 9:06 AM

Mortgage Rates as of May 30, 2010

CREATIVE MORTGAGE corp.

May 28, 2010- Mortgage News and Rates     

Foreclosure: Add It Up
Too often we get caught up in the articles in the media, in whichthey generally put their own "doom and gloom" spin on the information they are presenting.  When the media reports about topics such as the growing amount of housing foreclosures, they are not always explaining the situation correctly. Sometimes when a mortgage holder goes into foreclosure, it is not always because they cannot handle the size of their mortgage payments and instead has more to do with them not being able to properly document their finances. The outcome of this could result in not having the funds in thecorrect account where the mortgage payments are being drawn out of and not noticing the missed payments until it is too late. It is extremely important to track your finances and budget accordingly. Even though there are some mortgages in foreclosure due to loss of jobs and increased interest rates, not all of them are a direct result of the economy as stated in the news. http://www.financialpost.com/personal-finance/mortgage-centre/story.html?id=3068447 
Mortgage Term Review
Are your clients trying to decide on how much they can afford or what mortgage term will suit them best, whether it is fixed or variable, short or long term. We have attached a great link for you and your clients to view which gives a quick, simple run down of the general mortgage options. This also includes home equity lines of credit and cash back mortgages. Not every mortgage option suits each client’s individual needs nor is every option is explained to clients by some brokers before they make their decision. Buyer’s remorse is not something that we want our clients to have so providing them with every piece of information to help them make an informed decision is one of our top priorities.  http://www.canadianmortgagetrends.com/canadian_mortgage_trends/mortgage-term-review-may-2010.html
The Greek Effect has Spread
Greece is in trouble financially, but they are not alone. There are several other countries in the European Union (EU) that are also struggling with their debt levels. To try to lower these levels, the countries which include Italy, Spain and Ireland are cutting costs where ever they can. This can equate to salary cuts and even more importantly massive job losses in the public sector which make up a large percentage of employment in these countries. The end result will be that these cuts will drive down consumer spending as there will be less disposable income. There are even countries including Germany which want to cut their ties completely with the European Union. All of this has lead to fear of Europe heading into a second recession.

How does this affect us here in Canada? The housing market will be affected as there will be less Europeans looking to purchase homes in Canada, especially in the Okanagan region. Also European investors who are investing in Canadian companies are more likely to be pulling their funds out and placing them into safer products such as Canadian bonds and US dollars. The silver lining would be that the increase demand would drive down bond prices which would theoretically lower mortgage rates.

Shut Out from Variables
There has been a decrease in high ratio variable rate mortgages being approved in Canada. Is the reason being because of weaker applicants trying to obtain mortgages or because Variable rate mortgages are a bad product? In short the answer is no and the reason why is because the latest rules handed down by the Canadian government have made it more difficult to get approved for a Variable Rate by having high ratio mortgage seekers (less than 20% downpayment) qualify at a unrealistic rate. See attached article for specifics. http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2010/05/shut-out-from-variable-rate-mortgages.html
Our Value
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 e-mail address to our growing list.

BROKER'S BEST RATES

TERM

RATE*

PMT/$1,000**

APR

1 YEAR CLOSED

2.65%

$3.65/$1,000

2.67%

2 YEAR CLOSED

3.30%

$4.01/$1,000

3.33%

3 YEAR CLOSED

3.65%

$4.20/$1,000

3.68%

5 YEAR CLOSED

4.35%

$4.62/$1,000

4.40%

7 YEAR CLOSED

5.25%

$5.17/$1,000

5.32%

10 YEAR CLOSED

5.59%

$5.39/$1,000

5.67%

3 YEAR VARIABLE

PRIME - 0.50%

$3.14$1,000

1.76%

5 YEAR VARIABLE

PRIME - 0.50%

$3.14/$1,000

1.76%

PRIME RATE 2.25%
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
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, April 12, 2010 7:13 AM

Martgages Rates April 9 2010

CREATIVE MORTGAGE corp.

April 9, 2010 - Mortgage News and Rates     

Variable Rates on the Move
While prime rate has been sitting at an all time low  for over a year now, people who have been choosing a variable rate mortgage are looking quite brilliant.  However when there is the slightest bit of rumblings that the government may start to raise rates, it causes some of the less sophisticated variable rate mortgage holders to start second guessing their decision not to lock into a fixed rate. If you have  a variable rate mortgage  you have more than likely paid a considerable amount of principle off on your mortgage. Rob Carrick of the Globe and Mail has an interesting take on what he thinks you should do to make sure that the variable rate mortgage is the right choice for your situation.  http://www.theglobeandmail.com/globe-investor/investment-ideas/the-end-is-nigh-for-low-interest-rate-heaven/article1516716/
Watch the Bond Rates
If you or your clients were caught off guard  by the earlier then expected mortgage rate increase on fixed rates, perhaps following the bond rates from time to time will help understand  going forward. Mortgage lenders are constantly looking for a certain spread between the Bank of Canada rate and the mortgage rate for the same term. For example, right now the 5 year Bank of Canada bond yield is just over 3% and generally the spread that they require is anywhere from 1.35% to 1.50%. So this is why we now see the 5 year fixed mortgage rate in the 4.39% to 4.59% range. There are plenty of reasons as to why bond yields move in either direction, however,  being mindful of where bond rates currently stand will help you gage where mortgage rates have been, where they currently are and where they may be heading in the future.  http://www.financialpost.com/personal-finance/mortgage-centre/story.html?id=2765457
Parity a Good Thing?
Our economy is growing and doing so quite rapidly. Out of the 7 major economic countries in the world, Canada is growing at the fastest pace. In order to combat the growth from getting out of control (i.e. inflation) the government is  likely to take steps towards raising the interest rates. A tell tale sign that our economy is getting stronger is to take a look at our own Canadian dollar which has steadily risen to the current level and  is currently close to parity with the US dollar. The government has continued to take steps to slow down the economy without having to raise the interest rates too quickly which could ultimately also cause our dollar to rise too quickly due to an influx of foreign dollars looking to invest in our higher yielding bonds. Such steps include slowing down the real estate market by regulating the lending industry so that there are less speculators purchasing secondary properties with little actual equity required. http://www.financialpost.com/news-sectors/story.html?id=2773228
   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 e-mail address to our growing list.

BROKER'S BEST RATES

TERM

RATE*

PMT/$1,000**

APR

1 YEAR CLOSED

2.60%

$3.62/$1,000

2.62%

2 YEAR CLOSED

2.90%

$3.78/$1,000

2.92%

3 YEAR CLOSED

3.29%

$4.00/$1,000

3.32%

5 YEAR CLOSED

4.39%

$4.64/$1,000

4.44%

7 YEAR CLOSED

4.65%

$4.79/$1,000

4.70%

10 YEAR CLOSED

4.99%

$5.01/$1,000

5.05%

3 YEAR VARIABLE

PRIME - 0.50%

$3.19/$1,000

1.76%

5 YEAR VARIABLE

PRIME - 0.40%

$3.24/$1,000

1.87%

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
Sunday, April 04, 2010 9:02 AM

Interest Rates April 2, 2010

CREATIVE MORTGAGE corp.

April 2, 2010 - Mortgage News and Rates     

 

Rates Have Risen
Most of the lending institutions in Canada have started or are planning on raising their rates in a pre-emptive move to combat the Bank of Canada raising their rates earlier than expected. With inflation numbers proving to be stronger than anticipated by the government, it has lead many financial institutions to start raising their rates ahead of the once projected third quarter increase. Several banks thus far have raised their rates and an example of this would be the 5 year fixed rates which have increased by 0.6% which now places them in the 4.40% to 4.50% range. Not all of our lenders have raised their rates yet but that is not to say that they cannot on a moments notice. The best advice that we can give your clients is to contact us to at the very least obtain up to 120 day rate hold for a mortgage term. The key rates to follow are the Canadian inflation rates as well as the Canada bond yield. When the bond rates rise, it shrinks the mortgage lenders spread and thus forces them to raise their rates. http://www.cbc.ca/consumer/story/2010/03/29/mortgage-rates-up.html
Mortgage Rules: Confused
There are many different articles coming out lately trying to place their twist on the new mortgage rules and regulations. We have had several realtors and clients in the past few weeks try to make sense of all the commotion. Below are some Coles Notes of what the new rules imply:

1. The rental offset changes are going to affect the investment property market the most. In the past if you owned a rental property some of our lenders would allow you to take 80% of what your rental income was and apply it against what the mortgage payment and taxes. This meant that you would technically only need to qualify for 20% of what the mortgage payments plus taxes would be. Now the rules have changed and  you can only utilize 50% of the total rent and add that amount to your total income in order to qualify. This really changes the debt servicing abilities of a lot of consumers looking to purchase an investment property.

2. In order to purchase a rental or secondary property, you are now required to put down 20% of the sale price. Before the rule changes the minimum down payment allowed was 5%.The government has implemented this rule to protect investment owners from fluctuations in the housing market that could cause their investment property to have zero or negative equity.

3. Refinancing has also become more difficult. The maximum you can refinance on your own home is now up to 90% which used to be 95%.This was implemented to protect the home owner from market fluctuations and the potential to have negative equity in your own home. Lenders vary as to what amount you could pull out to refinance a rental property but most will only allow a maximum of 70-75% of the homes value.

4. And lastly, the rate qualification rule. This one has seemed to confuse even the most intelligent minds which obviously does not include some from parliament. If you wish to take a mortgage with a term less than 5 years whether it is a variable or fixed rate will have to qualify on the Bank of Canada's 5 year posted rate which is currently  in the 5% range (http://www.bankofcanada.ca/cgi-bin/famecgi_fdps). If you chose to take a 5 year term or longer your qualifying rate is the lending institutions 5 year discounted rate which is always lower than the Bank of Canada's posted rate. The government is essentially trying to push more homeowners towards taking the 5 year fixed rate or longer term.

Although these rules don't officially take place until April 19th, some of the lenders have already implemented some of the changes. So the earlier you can get your clients in to us for an approval, the better chance we have of obtaining a mortgage based on the old rules and regulations.

   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 e-mail address to our growing list.

BROKER'S BEST RATES

TERM

RATE*

PMT/$1,000**

APR

1 YEAR CLOSED

2.60%

$3.62/$1,000

2.62%

2 YEAR CLOSED

2.90%

$3.78/$1,000

2.92%

3 YEAR CLOSED

3.29%

$4.00/$1,000

3.32%

5 YEAR CLOSED

4.35%

$4.62/$1,000

4.40%

7 YEAR CLOSED

4.65%

$4.79/$1,000

4.70%

10 YEAR CLOSED

4.99%

$5.01/$1,000

5.05%

3 YEAR VARIABLE

PRIME - 0.50%

$3.19/$1,000

1.76%

5 YEAR VARIABLE

PRIME - 0.40%

$3.24/$1,000

1.87%

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
Saturday, March 20, 2010 3:04 PM

Interest Rates March 19, 2010

 CREATIVE MORTGAGE CORP.

March 19, 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. Let us know if you would like them to be added while they are searching for a property.  

 

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

3.15%

$3.92/$1,000

3.18%

5 YEAR CLOSED

3.79%

$4.29/$1,000

3.83%

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 - 0.50%

$3.19/$1,000

1.76%

5 YEAR VARIABLE

PRIME - 0.40%

$3.24/$1,000

1.87%

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

 

Inflation Warning
No rates changes……………yet. Today's CPI (Consumer Price Index) report could spell the end of our low rate run as the government is fixated on the Inflation number and this report could be a key indicator. If the CPI number dips tomorrow then we may be ok, and if it goes the other way, well we all know what we are in for! Be sure to get your clients to send in applications to us so we can get them pre-approve at today’s rates.
Mortgage Regulation Effect
All good things must come to an end at some point and in the Canadian Department of Finance's case its low interest rates. The housing market has really help push the at one time reeling Canadian economy out of one of the worst recessions in history. Now that there has been a sharp improvement in the housing sector and the economy is strengthening, the next step for the government will be to slow down the growth so that Canada inflation rate stays in check. This is usually between 2 - 3%. The rules implemented by the Department of Finance plus their noted intentions to raise interest rates as earlier as July will help to temper the and rapid growth in the economy. Changes in mortgage rules will help to ease the housing market growth by discouraging frivolous speculators from purchasing rental properties will downpayments which has the potential for negative equity if a slight correction occurs.  http://www.nationalpost.com/homes/story.html?id=2672369#ixzz0iFKKWN5M
Dazed & Confused
Much confusion has set in amongst clients looking to purchase a piece of real estate. Obtaining a mortgage for a self-employed individual will become a little more difficult come April 19th. The reason is that the Canadian Mortgage and Housing Corporation (CMHC) has implemented new regulations for self-employed individuals who have been applying for mortgages based on what they estimate (state) their income to be. Some individuals have a tough time proving exactly what their income is based on numerous write offs and irregular paycheques. CMHC is now requiring a 10% downpayment instead of 5% on purchases and a maximum of 85% for refinances of existing homes, down from 90%. There are also a few other changes made by CMHC which are explained in the attached link. If you or your clients need any further explanation on the changes, we encourage you or your clients to contact us.    http://www.financialpost.com/personal-finance/your-money/story.html?id=2691340
Mortgage Pre-Payment Penalties
If a client locked in their mortgage rate around 2 years ago or longer and are now looking to pay the penalty to get out of their current commitment and refinance at a much lower rate, they may be in for quite a shock. With fixed rate mortgages, most if not all lenders calculation their payout on the greater of 3 months interest or the interest rate differential (IRD) which is the difference between the rate they are currently paying and the rate now being offered by the lender for the term remaining. For example, if a client has 3 years remaining on a 5 year fixed term mortgage at 5.70% and the lenders equivalent rate for a 3 year is now 3.20%, the interest rate differential will be 2.50% for the remaining 3 years of payments. To put that in perspective, on a $400,000 mortgage, the prepayment penalty could be as much as $20,000.  http://www.financialpost.com/personal-finance/your-money/story.html?id=2691340
Posted by Brian O'Reilly | 0 Comments
Saturday, March 20, 2010 2:45 PM

Interest Rates March 12, 2010

 CREATIVE MORTGAGE CORP.

March 12, 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. 

Posted is the New Qualifier
There has been speculation as to how the Bank of Canada was going to calculate qualification for mortgages after April 19th. Ultimately they have made the decision that any mortgage with a term of less than 5 years will require the borrower to qualify at the Bank of Canada's posted rate. This only applies to clients if they are obtaining a high ratio mortgage which requires less than 20% down. These rules will not come into effect until April 19th so there is still time for you clients to take advantage of the current rules. These changes will largely affect clients who are looking to try to get into the market by qualifying on a shorter, lower rate term. To give an example, this week the Bank of Canada has posted their 5 year mortgage rate at 5.39%. So a client who trying to qualify on a 3 year fixed rate at 3.25% will soon be required to qualify for the same mortgage at 5.39% which will make it more difficult. The one exception  is for clients who are requesting a 5 year term as they can have the choice of qualifying at the Bank of Canada's posted rate or the lending institution contract rate whichever is better at the time.  http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2010/03/breaking-news-posted-is-the-new-qualifying-rate.html
Mortgages for the Self-Employed
Obtaining a mortgage for a self-employed individual will become a little more difficult as of April 19th. The reason for this is that the Canadian Mortgage and Housing Corporation (CMHC) has implemented some new regulations for self-employed individuals who have been applying for mortgages based on what they estimate (state) their income to be. Some individuals have a tough time proving exactly what their income is based on numerous write offs and irregular paycheques. CMHC is now requiring a 10% downpayment instead of 5% on purchases and a maximum  of 85% for refinances of existing homes, down from 90%. There are also a few other changes made by CMHC which are explained in the attached link. If you or your clients need a  further explanation on the changes, we encourage you to contact us.    http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2010/03/insured-stated-income-programs-tighten-up.html
Improving Credit
Every week we send out our rate sheet showing the best rates that we can offer your clients which in some cases you decide to forward on to your clients. These rates are based on clients having strong credit scores and in the event they don't, we have attached a great link to help your clients improve or maintain a strong credit score. Mortgage lenders are usually more lenient on documentation requirements if the clients have strong credit.  http://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/ca02178.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

3.79%

$4.29/$1,000

3.83%

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
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
More Posts Next page »