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.htmlCanadian 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=2375316What 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
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* Rates are subject to change and Lenders approval
** Payments based on a 35 year amortization and monthly payments
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