You might have seen the headline “HSBC crushes mortgage records with 0.99% variable rate”. No doubt about it, this is a great rate. However, it’s not for everybody. It is important to remember, like most deals, there are some restrictions. Among other things this offering is limited to high-ratio mortgages with a downpayment of less than 20 per cent. The reality is a higher interest rate may apply for non-owner-occupied properties, amortizations greater than 25 years and other exceptions to standard lending guidelines.Continue reading “Because not everyone fits into the same box”
“My fellow Canadians, Canada has spoken…” you’ve heard the speech before. Okay, now that the party is over, what’s the hangover gonna look like? It’s hard to say for sure. Politicians are infamous for making promises they can’t keep.
One thing that we (I’m talking about anyone with a mortgage or invested in real estate) should be concerned with is what the Liberals plan to do with housing, mortgage rules, interest rates.
Here’s part of what they have promised.. Good and Bad. Continue reading “Trudeau effect on housing market, interest rates and more….!”
This isn’t 2010, 11, 12, 13 or even 2014… It’s 2015, and once again, we are making this announcement. 5 year Fixed Mortgage rates are an new all-time lows! Today, you can get a 5 yr fixed rate for 2.79%, even 2.74%, with some conditions. (and by the way, yes, I am seeing slightly lower rates advertised, and I have access to these, but I won’t recommend these to my clients as they contain inferior terms, limited privileges, product restrictions and inflated prepayment penalty calculations… I won’t promote these.)
Just 2 years ago, the Federal Minister of Finance’s office picked up the phone, and called a Bank because they were advertising a 5 yr fixed rate at 2.99%. The federal govt was concerned that the record low rate, at the time, would promote more consumer spending and make the already hot real estate market, even hotter. Continue reading “Mortgage Rates hit Record lows again!”
Fixed mortgage rates are tied into Govt of Cda bond yields. As the yields go done, so does the fixed mortgage rates.. well, usually.. more on that later..These bond yields have hit all-time lows in the past week… Yesterday, they were as low as 0.55%... To put that into perspective, the 5 yr bond yield is lower than the Bank or Canada overnight rate, which now stands at 0.75%. Another historical event. That almost never happens.
Check out these 2 historical charts to compare the Bank of Canada rate from 1935 to Dec 2014 and 5 year Govt of Cda bond yield from 1980 to Dec 2014….
If you’re wondering what this means for you, a Canadian consumer, it means mortgage rates should go even lower. Institutional investors are pricing in a further Bank of Canada rate cut at their next schedule meeting on March 4th, 2015. Continue reading “Record low Bond yields means even lower fixed mortgage rates”
FEAR..! They say fear motivates us to do things we shouldn’t. If you’ve been reading the News Headlines for the past several weeks, you’ve been hammered with RATE HIKE FEARS! Everyone was saying rates were gonna go up.
It wasn’t just speculation, it was a foregone conclusion. Almost factual! There were headlines even reporting how much of an impact these new ‘higher rates’ would affect our lives, our budgets, our house values, our savings, etc. We saw so-called ‘Experts’ recommending we lock into long term Fixed rates! There was one articles telling us we should consider selling out homes! I mean if you didn’t know better, you would think the sky was falling!
Panic was starting to set in for thousands of Canadians. I was getting calls from concerned consumers asking if they should be doing anything with regards to their mortgage, their investments, and other personal finances. Continue reading “Bank of Canada Rate cut is positive news… don’t listen to fear mongers.”