Here’s a link to a newscast about what the stock market thinks will happen with interest rates when the Bank of Canada meets on July 20, 2010.
http://www.theglobeandmail.com/video/will-bank-of-canada-raise-interest-rates/article1632965/
I would love to have your opinion, so leave a comment below!
- John Carle
ReMax Real Estate (Edmonton)
www.knock-knock.ca
780-701-9090
This is a guest post by Julie Cooper of Tower Wealth Management…
Hi Everyone!
I hope you have had a busy spring market!
Today I met with one of my lenders who is opening up their Stated Income mortgages for Rental Properties again! The borrower must be either Business for Self or a fully commissioned earner.
Requirements to prove are:
BFS – one document proving Business for Self at least six months
Commissioned – letter from person who writes the commission cheque stating borrower is 100% commissioned – no income amount to be reported!
With both, no Notice of Assesments or other verification is needed!
This lender will do these stated income for rental property mortgages in Edmonton and immediate surrounding areas for those with average credit (contact me for full details) and 35% down. The investors this may appeal to are those with large amounts of equity in their principle homes or who already have some investment properties with good equity looking to purchase more investment properties – at decent rates! (current 3 year rate is 4.70 and current 5 year rate is 5.99 – rates are subject to change without notice).
I am pretty excited to have a lender back in the rental property/stated income arena and wanted to let you know asap for any opportunities you may come across. Let me know if you have any questions!
Julie Cooper CMA, AMP
Tower Wealth Management/Axiom Mortgage Solutions
16406 100 Ave. Edmonton, Alberta T5P 4Y2
p.780.484.5777
f.1.866.891.7305
t.1.866.484.5777
c.780.982.1154
juliecooper@towerwealth.com
“We provide individuals and businesses with comprehensive wealth management solutions using our unique Wealth Navigation Program”
If you follow the news, you have heard about it– Mortgage Rates are on the RISE! Now that the economy is showing signs of recovery, the inevitable has begun to happen – increasing mortgage rates…..currently, it is fixed interest rates that have started increasing (interest rates that do not fluctuate during the term of your mortgage), but variable rates (rates that fluctuate) are also expected to start increasing as early as June 1, 2010.
This spring market looks to be a great buying opportunity – property values seem to have stabilized from the hot market that ended in 2007 and interest rates are at record lows, making home buying an attractive idea for many Canadians. Whether it’s your first home, or you are looking to upgrade from your current home, getting your financial ducks in a row now can save you thousands of dollars in interest when you are ready to purchase that perfect property.
What can you do to safeguard against rising mortgage rates if you haven’t begun searching yet or are currently looking without interest rate protection? An independent mortgage associate can find the perfect lender for your financial situation and secure an interest rate for you for up to four months. This way, your rate is protected from the rate increases lenders and financial experts caution are expected to continue. The best part – if interest rates should instead decrease during your rate protection period, you will receive the lower interest rate. In other words rate protection offers all win and no risk!
Securing an interest rate when you are house hunting is key. Even a small increase in interest rates can make a big impact on your monthly mortgage payment and the interest you will pay in your mortgage term. Just a quarter point interest rate hike will cost you almost $3,700 more over a five year term on a 300,000 mortgage* – however, since the end of March 2010, interest rates have increased by over a half a percentage point. Coupled with the newly announced increases in the news over the last couple of days, the end result will be increases of up to a full percentage point in just three weeks – a potential of almost $15,000 more interest paid over the term.
Interest rates are expected to continue to rise with the economic recovery. Interest rate protection is a prudent way to ensure you will be prepared to make an offer when you find the perfect property. While some lenders have already started this second round of increases, there are others that have held off for a day or two. However, they too will begin to match the increases other lenders have already initiated. Don’t get caught in the higher rate increase! All it takes is talking to an independent mortgage associate to secure a great low rate.
If you’d like to secure a mortgage, you are welcome to use the contact form below. A mortgage specialist with Axiom Mortgages will contact you within 1 business day.
* (amortized over 35 years)
This blog post was provided by Julie Cooper with Axiom Mortgage Solutions.
Julie Cooper CMA, AMP
Tower Mortgage / Axiom Mortgage Solutions
16406 100 Ave.
Edmonton, Alberta T5P 4Y2
p.780.982.1154 f.1.866.891.7305
There’s been a lot of speculation surrounding this change. The new qualifying rate has been a big question mark ever since the Finance Department announced its new mortgage rules on February 16.
The posted qualifying rate will be published by the Bank of Canada each Monday at approximately 12:01am Eastern Time.
Currently lenders use qualifying rates that range from discounted 3-year fixed rates (like 3.29% today) to posted 5-year fixed rates (5.39% today).
Going forward, mortgages with terms of five years or more will use the contract interest rate.
This is key because it suggests lenders will still be able to qualify insured 5-year fixed borrowers using heavily discounted contract rates (e.g., 3.75% instead of 5.39%, as of today).
If so, guess which term is going to grow in popularity? Yes sir; the 5-year fixed. It’ll be the easiest term to qualify for, for people with borderline debt ratios.
CAAMP estimates that 30% of home buyers choose a 1- to 4-year term. With this new qualifying rate, some of those people will be forced into a 5-year term (and a very small number will no longer qualify at all).
Keep in mind, these changes only apply to mortgages over 80% loan-to-value, says CMHC. So if you’re putting down 20% or more, you probably won’t be affected.
Based on the recent inquiries we’re seeing from concerned borrowers, there may be a rush to get applications in under the old rules.
This information is courtesy of:
Krista Rumberg
Mortgage Specialist
Krista@MortgageSimple.ca
www.MortgageSimple.ca
The Honourable Jim Flaherty, Minister of Finance, today announced a number of measured steps to support the long-term stability of Canada’s housing market and continue to encourage home ownership for Canadians.
“Canada’s housing market is healthy, stable and supported by our country’s solid economic fundamentals,” said Minister Flaherty. “However, a key lesson of the global financial crisis is that early policy action can help prevent negative trends from developing.”
The Government will therefore adjust the rules for government-backed insured mortgages as follows:
Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes. This will help ensure home ownership is a more effective way to save.
Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.
“There’s no clear evidence of a housing bubble, but we’re taking proactive, prudent and cautious steps today to help prevent one. Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it,” said Minister Flaherty. “If some lenders aren’t willing to act themselves, we will act. These measures demonstrate the Government is committed to taking action when necessary to support the long-term stability of a sector that is so vital to our economy and the financial well-being of Canadian families.”
These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010.
___________________________________
For further information, media may contact:
Annette Robertson
Press Secretary
Office of the Minister of Finance
613-996-7861
Jack Aubry
Media Relations
Department of Finance
613-996-8080
This post was copied from http://www.fin.gc.ca/n10/10-011-eng.asp
Are you a first-time home buyer? If so, the non-refundable first-time homebuyers tax credit may allow you to collect up to $750.
What is the Home Buyers’ Tax Credit (HBTC)? For 2009 and subsequent years, it is a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009 (i.e., closing after this date).
The new HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.
An individual will qualify for the HBTC if:
- they acquire a qualifying home (new or already constructed houses, semi-detached homes, townhouses, condos or mobile homes); and
- neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of purchase or any of the four preceding years.
So, for many people venturing in to home ownership for the first time, it may offer a small incentive to ease the financial contribution that comes with it.
For more information on the Homebuyers Tax Bredit visit;
http://www.cra-arc.gc.ca/gncy/bdgt/2009/fqhbtc-eng.html
Hi John;
We were in touch today with the banker today on the house we bought, and they want to know if we want a variable rate or fixed rate mortgage? What do you think?
- Steve & Kristy
Hi Guys!
Well, that’s a tough question. It really depends on your own comfort level. I think rates will stay low for a while, so you’re probably safe to stay variable. But keep a close eye on the rates… when they start to climb, lock that mortgage into place.
I have another client who gave me a brilliant idea. Tell your banker to base your payments on a fixed rate of 6.0%. Any extra payment will go against your principle, and you’ll pay it down faster. This way you can really take advantage of the current low rates. When rates start to climb, you can still lock in below that 6% level… and thus not face increased payments. Just a thought for you.
Have a great day, and I’ll see you next month with your keys!
- John Carle
Hi John;
We were in touch today with the banker today on the house we bought, and they want to know if we want a variable rate or fixed rate mortgage? What do you think?
- Steve & Kristy
Hi Guys!
Well, that’s a tough question. It really depends on your own comfort level. I think rates will stay low for a while, so you’re probably safe to stay variable. But keep a close eye on the rates… when they start to climb, lock that mortgage into place.
I have another client who gave me a brilliant idea. Tell your banker to base your payments on a fixed rate of 6.0%. Any extra payment will go against your principle, and you’ll pay it down faster. This way you can really take advantage of the current low rates. When rates start to climb, you can still lock in below that 6% level… and thus not face increased payments. Just a thought for you.
Have a great day, and I’ll see you next month with your keys!
- John Carle
Hi John;
We were in touch today with the banker today on the house we bought, and they want to know if we want a variable rate or fixed rate mortgage? What do you think?
- Steve & Kristy
Hi Guys!
Well, that’s a tough question. It really depends on your own comfort level. I think rates will stay low for a while, so you’re probably safe to stay variable. But keep a close eye on the rates… when they start to climb, lock that mortgage into place.
I have another client who gave me a brilliant idea. Tell your banker to base your payments on a fixed rate of 6.0%. Any extra payment will go against your principle, and you’ll pay it down faster. This way you can really take advantage of the current low rates. When rates start to climb, you can still lock in below that 6% level… and thus not face increased payments. Just a thought for you.
Have a great day, and I’ll see you next month with your keys!
- John Carle
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