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)
Lesley Pierce, AMP
Mortgage Consultant
(250) 717 – 8949 (Ext. 103)
Paul Cescon, BBA, AMP
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
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