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 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 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/ 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.
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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)
Paul Cescon, BBA
Mortgage Consultant
(250) 717 – 8949 (Ext. 101)
Follow us on Twitter - @MORTGAGE_BC
* Rates are subject to change and Lenders approval
** Payments based on a 35 year amortization and monthly payments
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