It’s all over but the crying!!
No more rate holds at 3.89%, but if you have a live deal closing in the next 30 days I have one lender still keeping a 3.89% Quick Close rate. Although I don’t expect it to last the week!
Here’s an update of the current rates:
1 Year 2.55%
3 Years 3.29%
4 Years 3.64%
5 Years 4.19%
10 Years 4.99%
5 year 30 Day Quick Close 3.89%
Bank Prime Rate as of Mar 31/10 2.25%
3 yr Variable Rate = Prime -.50% 1.75%
5 yr Variable Rate = Prime -.50% 1.75%
* Rates are subject to change without prior notice.
* OAC
Regards,
Peter McKinnon
Mortgage Broker, Centum Pacific Mortgages
Cell 604.506.6789
Office 604.609.0333 Fax 604-687-1677
peter_mckinnon@centum.ca http://www.peterlmckinnon.com
Wednesday, March 31, 2010
Monday, March 29, 2010
RBC and TD pull the trigger!! Interest rates head up
RBC started the week off by raising their 5 year posted fixed rate a record 0.60% to 5.85%.
TD followed shortly after with the same. We can expect more to follow as the week progresses.
What should you do?
If you are in a variable rate product and were planning on locking in to a fixed rate, better get in touch with your lender.
If you are renewing an existing mortgage soon, or in the market to buy, contact your mortgage broker and get a 3 or 4 month rate hold. ING offers a great rate hold without a full application so it is a great way to hold a nice rate with little information! Currently ING will hold a 5 year rate of 3.89% for 120 days. This could change anytime so don't wait!
Stay tuned for more rate updates!
Peter_mckinnon@centum.ca
http://www.peterlmckinnon.com
c: 604-506-6789
TD followed shortly after with the same. We can expect more to follow as the week progresses.
What should you do?
If you are in a variable rate product and were planning on locking in to a fixed rate, better get in touch with your lender.
If you are renewing an existing mortgage soon, or in the market to buy, contact your mortgage broker and get a 3 or 4 month rate hold. ING offers a great rate hold without a full application so it is a great way to hold a nice rate with little information! Currently ING will hold a 5 year rate of 3.89% for 120 days. This could change anytime so don't wait!
Stay tuned for more rate updates!
Peter_mckinnon@centum.ca
http://www.peterlmckinnon.com
c: 604-506-6789
Monday, March 15, 2010
Pre Approvals and upcoming changes April 19th
As you may have heard there are some changes coming down on April 19th from the government that will effect mortgages.
The change that will effect most buyers is the qualification rate used by lenders to determine how much money they will lend based on debt servicing ratios. In the past if a purchaser was trying to stretch their topside, you could qualify for a higher dollar amount by taking a shorter term or variable rate mortgage product. This would allow a lender to use a 3 year rate of 3.25% instead of the higher 4.09% 5 year rate. Doesn't seem like much, but that difference could mean tens of thousands of dollars on your mortgage. As of April 19th, the government will be dictating a contract rate (like the bank rate) that will be based on 5 year rates and that all lenders will be required to use in qualifying mortgage debt ratios, regardless of product.
Right now, with the threat of higher rates coming, many of my clients are looking for pre-approvals or rate holds to lock in a great rate while shopping for their new home. How does the change effect your rate hold or pre-approval?
Suppose you get pre-approved before April 19 and you’re putting down less than 20%. What happens if you don’t sign a purchase agreement until, on or after, April 19? Which qualifying rate will the lender use to determine if you can afford the mortgage?
CMHC has provided this clarification:
Pre-approval does not count as a financing agreement as it doesn’t represent a binding agreement to advance funds. So even if the borrower gets pre-approved before April 19, given that he/she would sign the purchase agreement after the cut-off date, the new rules would apply.
In practice, if you’re well-qualified, you won’t be impacted by any of this.
If, however, you are getting pre-approved and your debt ratios are near the limits, it could mean that:
a) The higher qualifying rate after April 19 might reduce the mortgage amount you’ll qualify for (assuming you haven’t signed a purchase agreement before then); and,
b) You might potentially qualify for only a 5-year fixed term.
Keep in mind that the government’s new posted qualifying rate does not apply if you are putting down 20% or more.
Hope this helps clarify this topic. Stay tuned for further updates regarding the other changes coming soon!
Peter McKinnon
www.peterlmckinnon.com
The change that will effect most buyers is the qualification rate used by lenders to determine how much money they will lend based on debt servicing ratios. In the past if a purchaser was trying to stretch their topside, you could qualify for a higher dollar amount by taking a shorter term or variable rate mortgage product. This would allow a lender to use a 3 year rate of 3.25% instead of the higher 4.09% 5 year rate. Doesn't seem like much, but that difference could mean tens of thousands of dollars on your mortgage. As of April 19th, the government will be dictating a contract rate (like the bank rate) that will be based on 5 year rates and that all lenders will be required to use in qualifying mortgage debt ratios, regardless of product.
Right now, with the threat of higher rates coming, many of my clients are looking for pre-approvals or rate holds to lock in a great rate while shopping for their new home. How does the change effect your rate hold or pre-approval?
Suppose you get pre-approved before April 19 and you’re putting down less than 20%. What happens if you don’t sign a purchase agreement until, on or after, April 19? Which qualifying rate will the lender use to determine if you can afford the mortgage?
CMHC has provided this clarification:
Pre-approval does not count as a financing agreement as it doesn’t represent a binding agreement to advance funds. So even if the borrower gets pre-approved before April 19, given that he/she would sign the purchase agreement after the cut-off date, the new rules would apply.
In practice, if you’re well-qualified, you won’t be impacted by any of this.
If, however, you are getting pre-approved and your debt ratios are near the limits, it could mean that:
a) The higher qualifying rate after April 19 might reduce the mortgage amount you’ll qualify for (assuming you haven’t signed a purchase agreement before then); and,
b) You might potentially qualify for only a 5-year fixed term.
Keep in mind that the government’s new posted qualifying rate does not apply if you are putting down 20% or more.
Hope this helps clarify this topic. Stay tuned for further updates regarding the other changes coming soon!
Peter McKinnon
www.peterlmckinnon.com
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