http://www.creb.com/public/documents/statistics/2009/package/res-stats-2009-may.pdf
Calgary Real Estate Board Housing Market report for May 2009. Good news as Calgary is showing a month over month gain as well as a gain from same month in 2008.
Just when the market seems to be picking up the lenders start to increase their fixed interest rates. Bond rates/yeilds have been on the rise for the last month so it’s no surprise to see the rates are increasing slightly. Rates are still outstanding! On another note, the lenders are now starting to reduce their spreads on variable rates. We can now get a closed variable at prime plus .30% (2.55%). With the Bank of Canada holding steady until June 2010 this is now becoming a more viable option. When you use a broker you can always lock into a fixed rate at any time….at our discount!
If you have been sitting on the fence to see if rates would drop further, it is now time to make a decision as it seems that we have already hit the bottom and are now starting to rise. Any questions, please contact us.
Great news for those of us on variable rate mortgages or with lines of credit. The Bank of Canada has dropped interest rates by another quarter point. More good news is that most of the banks seem committed to dropping their Prime Lending rate as well.
The most frequently asked question that we get when the prime lending rate is decreased is “how will it affect our fixed rate” the answer is simple….it won’t. Fixed rate mortgages are based on the bond market not the prime lending rate.
It looks as though the prime lending rate will remain extremely low right into 2010. I would hang tight to your variable rate mortgages and take advantage of the low interest rates.
A great tip to help reduce your amortization quickly is to keep your payment the same even when the rates are down. The extra money that goes directly to your principle will reduce your amortization substantially.
For all of our website visitors who are thinking of or have already moved to Canada and looking for information on how to obtain a mortgage I will try to provide up to date product information so that you can make informed decisions when purchasing your Canadian home.
NEW INCOME GUIDE FOR NEWCOMERS TO CANADA:
New Canadians (even those on a work permit) can now use guaranteed income from foreign countries such as police pensions or Her Majesty’s Forces pension income to qualify for a mortgage. Certain conditions do apply, so please contact me with any questions.
Foreign Rental Property Income: New Canadians can now use rental income from their foreign properties as part of their Canadian mortgage application. There are only a couple of lenders willing to take this income into consideration and of course they have very strict guidelines that they follow. It is great news for those considering a move to Canada, but have been unable to sell their international home. Please contact me with any questions as I would be very happy to walk you through the guidelines.
As a New Immigrant to Canada you have options available to you to finance the purchase of a home.
Whether you are a professional, a tradesperson or self employed there are options for you. At Mortgage Planning Centre we specialize in mortgage financing for those new to Canada. We make it a priority to understand all programs and products that relate to new immigrant financing. We also understand the stress involved in such a long distance move and that is why we recommend a mortgage consultation prior to moving to ensure that you understand the process and have your paperwork prepared so that your home purchase will be a smooth transaction.