Your Mortgage Matters

Variable Rate Update Dec 8th

2010-12-08T16:00:00.000-08:00

Variable Rate Update - December 8, 2010

All variable rate mortgages are affected by changes in monetary policy as dictated by the Bank of Canada. Generally, when the Bank of Canada (BOC) decides to move its “overnight lending rate”, chartered banks and other financial institutions react by moving their prime rate accordingly. I prepared the following summary to help you track the market:

What Happened?

As expected, The Bank of Canada announced this morning that it will leave its overnight interest
rate unchanged at 1%. It also signaled that any future changes to their rate will be carefully considered as threats to the global economy have increased. Following this decision, banks and other lenders are expected to leave their prime rate at 3%.

How Does This Affect You?

Assuming you were comfortable with being in a variable rate yesterday, today’s decision should give you even more reassurance that this is a good place to be in the short-medium term. While fixed rates have inched up over the last month, there is no apparent reason to lock-in immediately. That said, for those concerned about rising rates, a “no commitment” rate hold might be worth securing (see below).

Today’s Average Variable Rate Mortgage: Prime less 0.70% (currently equal to 2.30%)

Variable rate discounts (that is, the reduction below prime) seem to have leveled off after a year of large decreases. If you’ve entered into a variable rate term over the last couple of years, it may be worth switching into a new variable mortgage with a better discount off prime. Figuring this out involves a very straightforward calculation that I’d be happy to assist you with.

Today’s Best “No Commitment” 120 Day Rate Hold: 5 Year Fixed @ 3.79% (Other terms available on request).

Worried about missing out on fixed rates while they’re low? Securing this rate for the next 4 months is as easy as letting me know you’d like to. No obligation, no application, and no credit check necessary.

Outlook and Opinion:
Canada seems to be reluctantly married to low rates over the long term and the typical reasons to raise rates (to calm inflation, to cool off the economy, to keep up with other central banks) appear to be an afterthought at the moment. As long as the Canadian and American Dollar remain close to par, the Bank of Canada will have a very hard time justifying further rate increases. This is because a high Canadian Dollar acts as a drag on the economy while at the same time reduces inflation by lowering the cost of our imports. Today’s rate decision had very little effect on the bond market, signaling that the experts believe low rates are here to stay.
Providing you have risk tolerance and flexibility in your budget to withstand higher payments over time, variable rates will likely provide a larger interest savings over the next five years.

The next Bank of Canada meeting and decision date on rates is January 18th, 2011.

Strategies for Paying Down your Mortgage

2010-11-25T14:16:00.000-08:00

I know its a little early for New Years resolutions but when it comes to saving thousands in interest its always a good time!!

Strategies for Paying Down your Mortgage

Set a Goal – We have all heard the saying "failing to plan is a plan to fail" so you need to at least think about what you are trying to achieve and take small steps towards that goal. For instance, decide you want to pay an extra $10,000 this year towards your mortgage, then work back and see what you need to do monthly or weekly to achieve your goal.

Establish Savings Habits – It’s pretty difficult to aggressively pay down the mortgage without establishing proper saving habits. Having the ability to generate savings brings a lot of freedom and can ultimately lead to paying off the mortgage faster.

Accelerated Bi-weekly Payments – This is a common strategy that works! By simply paying the mortgage during bi-weekly pay periods (instead of monthly) can result in an extra payment by the end of the year, which ultimately means less interest. This strategy alone can reduce the mortgage amortization by 3-4 years.

Topped up Payments – I like the strategy of topping up mortgage payments as it is forced savings. Even an extra $100 per mortgage payment can make a difference in amortization. Most fixed mortgages allow payments to be topped up by as much as 20%. One of my favorites is to have my variable rate clients set their payments at the 5 year fixed rate. That way they don't even notice the extra money going straight to the principle!!

Annual Lump Sums – This goes back to having savings habits. With strong savings, it enables the homeowner to use up some of those prepayment mortgage allowances. Most mortgages allow a lump sum payment of 15- 20% of the original mortgage balance annually. Take advantage and put large amounts when cash was available. For example, if you sell another asset (ie rental property), do well on some stocks (hopefully!!) or receive an inheritance.

Most of these items are common sense, but sometimes you need a reminder to create a new plan of action. Hope this helps!

Peter McKinnon
www.peterlmckinnon.com
peter_mckinnon@centum.ca

Mortgage Shopping Revealed!

2010-11-09T15:40:00.000-08:00

Here are some recent stats on how consumers shop for mortgages:

Mortgage Shopping
1.96: Average number of mortgage quotes obtained by consumers.
42%: Percentage of mortgagorswho got just one quote.
I guess the idea of shopping around and saving money apparently doesn’t appeal to some folks.
6%: Number of borrowers who got no quotes.
This includes people who simply signed their renewal letter. What a painful thought.
10%: Share of mortgagors who got over three rate quotes.

Pre-payments
12%: Percentage of mortgagors who made a lump-sum pre-payment in the past year.
So many people want 20% pre-payment privileges and so few people use them.
16%: Percentage of mortgagors who increased their regular payments in the past year.
7%: Percentage of mortgagors who did both.

Rate Selection
66%: Chose fixed rates in the last 12 months.
29%: Chose variable/adjustable rate mortgages.
4%: Chose hybrid mortgages (part fixed / part variable).

Term Selection
66%: Took 5-year terms.
8%: Took terms over five years.
26%: Chose terms less than five years.

Professionals Consulted When Mortgage Shopping
70% spoke to a bank rep.
40% spoke to a mortgage broker.
Up five percentage points from last year.
22% spoke to a credit union.

Where People Went For A New Mortgage
40% went to a mortgage broker
39% went to a bank
21% went elsewhere

peter_mckinnon@centum.ca
http://www.peterlmckinnon.com/

Where are rates going??

2010-10-05T10:14:00.000-07:00

Yields Close At A 17-Month Low

The 5-year government yield (which influences 5-year fixed mortgage rates) closed at 1.998% on Monday, its lowest level in 17 months.

Friday's all-important jobs reports will determine if bonds hold the 2.00% level for the short-term. Employment expectations are pretty low, so it wouldn’t take much for a positive surprise.
If yields do stay below 2%, we may see discounted 5-year rates inch a bit lower.

Lenders currently have plenty of spread (profit) in today’s typical 3.59% five-year fixed.
As usual, economic performance (both here and in the US) will influence bonds over the medium-term. BMO expects “Canadian bond yields to decline a bit further in the coming six months and then [turn higher] once the Bank of Canada resumes tightening.” (Bloomberg)
CIBC predicts “a pause in rates until May.”

Other notable facts:

Bloomberg recently surveyed 14 major economists and their consensus is for the next BoC rate hike to come in 2nd quarter 2011. (Businessweek)

Reuters says the markets are pricing in an 89% probability of no change at the BoC’s next meeting on October 19.

TD’s latest forecast calls for a 5.50% prime rate and a 4.35% five-year yield by year-end 2014.

That’s a 250 and 235 basis point increase respectively. Based on historical spreads, that suggests the following rates in four years:
5-year variable rates: 4.75%
5-year fixed rates: 5.60%.

Of course, I don’t have to remind most readers how big the margin of error is in long-range forecasts.

Peter McKinnon

www.peterlmckinnon.com

peter_mckinnon@centum.ca

Homebuyers Shouldn't Expect Hot Deals.....

2010-08-20T15:05:00.000-07:00

From The Canadian Press Aug 15th, 2010

Sellers are facing more empty open houses and fewer bids on their homes, but experts say
buyers shouldn't expect to see a retreat from record-high home prices when July housing data is
released Monday.

Home sales have fallen 25 per cent since reaching a peak at the beginning of the year as
demand slows and more houses come onto the market. But it will take much longer for sky-high home prices to fall and the market to enter buyer-friendly territory. And history is on the side of the seller.

"Over time, if you were to look at the last 40 years, it's much more common to see sellers'
markets than buyers' markets," said Phil Soper, president of Royal LePage.
"It comes down to the different psychology that exists between buyers and sellers. Buyers are
very quick to adjust to a down market and sellers are very slow to adjust to a down market.
Sellers stubbornly hold onto their perception of what their home is worth, whereas buyers turn on a dime."

Soper expects to see sales decline dramatically from last July's near-record activity, but predicts
there will be little change in home prices when the Canadian Real Estate Association releases its
monthly sales figures Monday.

Seasonally-adjusted home sales fell 8.2 per cent in June from the month before and shrunk 19.7
per cent compared to June 2009. However, the average Canadian home price sat at $342,662
compared to $326,689 in 2009. "You would think prices would come down more rapidly given the drop in sales," said Sal Guatieri, senior economist with BMO Capital Markets.
Guatieri expects to see as much as a 35 per cent year-over-year drop in July home sales. He
projects monthly sales figures will be around 32,600 homes, which would represent the weakest
July since 2001. However, he says price increases will weaken just slightly, and only because
they were so high last year.

"It's only in a so-called buyers' market, where there are lot more listings on the market than sales, that buyers have some bargaining power and sellers are more willing to ease up on price, that we would see prices actually falling," he said.

But Mark Weisleder, a real estate author and lawyer, says real estate agents are beginning to
notice some discernable changes as the Canadian housing market cools off. Buyers are not as rushed to make an offer and are becoming more aggressive in negotiations, while sellers are beginning to accept less than asking price for homes as interest wanes.

"(Agents) are going to open houses, sitting there for three hours, and two people come in at the
most. Right now there doesn't seem to be that level of stampede mentality to go see a house,"
Weisleder said. "I do believe there is a disconnect between some of the data that people are throwing out there every day in the numbers, and slowly you're going to see prices come down."
Many buyers hurried to close in late 2009 and the first half of this year ahead of the new
harmonized sales tax in B.C. and Ontario, new mortgage requirements, and to take advantage of
record-low interest rates.

That pulled ahead sales that might otherwise have occurred in the second half of 2010,
increasing demand and leading to bidding wars in which buyers were willing to overpay to secure
a property. As home prices crept higher and consumers became more confident about an economic recovery, more sellers put their homes on the market, which increased inventory.
Now fewer buyers are shopping for homes just as more listings flood onto the market. That has
shifted the housing balance away from the seller-friendly market into neutral territory, but it's still shy of a buyers' market. Weisleder says the market isn't poised to enter buyers' territory any time soon, as historically low interest rates and a stable economy continue to make buying a Canadian home attractive.

"Because of the interest rates being so cheap to borrow money, prices may not fall too much
because people can still afford (to borrow) probably more than they should," he said.
"But it doesn't mean the house is worth that much," he said, adding that if rates go up it could be
catastrophic for homeowners who have taken on more debt than they will be able to afford.
Meanwhile, sellers have become accustomed to fetching high home prices and want to hang onto
their properties for as long as it takes to get those prices -- although that window has stretched
from a couple of weeks to a few months.

"No seller wants to jump the gun, so a lot of people are sitting on the fence and trying to hold on,"
Weisleder said. "A lot of people are very upset they didn't sell six months ago."

Bank Rate goes up, 5 years come down!!

2010-08-17T13:02:00.000-07:00

What a roller coaster ride we've had this year......

3 months ago we were looking at bond yields over 3% which drove 5 year rates to 4.59% (thanks RBC!!) and the threat of Bank of Canada increases and higher rates to come.

Skip ahead, and we've had 2 BoC rate increases, bank prime now sitting at 2.75%, but corporate bond yields have crashed to the 2.15% allowing mortgage lenders to drop 5 year fixed rates. As of today my best is 3.69%!! with the majority hovering in the 3.89%- 4.09%.

On the real estate side, we're now told by the media that we have a buyer's market in Vancouver. Cheap money and a buyers' market? Who would have guessed?

Here are the current rates as of today: OAC and subject to change of course!!

5 year fixed Quick Close 3.69% must fund within 30 days of application
5 year fixed Standard 4.09%

3 year fixed 2.90%

5 year VRM prime - 0.65% 2.10%

3 year VRM prime - 0.75% 2.00%

peter_mckinnon@centum.ca
www.peterlmckinnon.com

cell 604-506-6789

Interview with Odlum Brown Strategist on whats to come from interest rates

2010-06-17T09:14:00.000-07:00

If you haven't had enough opinions offered or articles about what to expect in the coming months and years, here's some great points from Hank Cunningham, Fixed Income Strategist for Odlum Brown with over 40 years experience.

These excerpts are from Canadian Mortgage Trends http://www.canadianmortgagetrends.com/
an invaluable resource for what's going on in the mortgage world!

On long-term interest rates…

Hank: I don’t see much upward pressure on rates—not in the developed world. There’s no inflation to speak of. In fact, inflation continues to recede in most places if anything.

On the European debt crisis…

Hank: The sovereign debt issue is a major problem, but it’s confined to a part of the globe where it’s not going to have a material impact on the rest of the world. Certainly not from a growth point of view.

On long-term rates one year from now…

Hank: You’re going to see a flatter yield curve looking out a year. The spread between a 1-year mortgage and a 5-year mortgage is going to be a lot narrower. The yield curve is still steep right now. I think (mortgage) clients are still better off floating than they are fixing.

One of the other things you have to think about is the amount of debt coming due by governments. The U.S. has 40% of its debt maturing in the next three years. They don’t want higher inflation and interest rates.

On inflation risk…

Hank: Inflation is just under 2% in Canada. In the U.S. it's under 1% actually.

The 5-year rate might go up a bit, but the market will get anticipatory (and discount the Bank of Canada’s future rate increases)…and then, longer-term yields should come back down. People tend to underestimate the discounting nature of the market.

Note: I have removed a great technical analysis of effect bond yields to save some of you from getting too detailed, if you'd like to read more http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2010/06/1-on-1-with-hank-cunningham.html

On economists’ forecasts of the Bank of Canada…

Hank: Economists generally do straight line forecasting. They don’t allow a lot of room for (unexpected) changes in the marketplace. Rate forecasts depend on your view of the world. My view of the world is one of growth with very little inflation. In that scenario there is no need for serious tightening. Market rates will rise if the demand for money rises. The market really acts independently from the Bank of Canada, as you know.

On where we go from here…

Hank: The BoC has already indicated that rates are going up. It (the hike in June) won’t be the last increase in the Bank rate. You’re going to see a flatter yield curve for sure.
The banks have been funding longer-term mortgages with short-term money. They pay nothing on savings and charge 4% for a mortgage. It’s been easy arbitrage. In 12-18 months that will be over.
In the meantime, people with mortgages will be “forced” to fix at the wrong time, right before rates come back down again. It happens, and it’s going to happen again. We’ve already had one false move in rates.

On going fixed or variable…

Hank: Money has been cheap. If people have fear of rates rising, you can fix right now and still have cheap money. I have no problem recommending that. But if you’re playing it close to the chest, I would stay floating right now.

Have a great weekend!

Peter McKinnon
http://www.peterlmckinnon.com/
peter_mckinnon@centum.ca

Housing Prices to fall in 2011??

2010-06-10T12:24:00.000-07:00

I have had more than a few clients asking me about the recent studies released by the Canadian Real Estate Association (CREA) indicating a 3.5% decrease in the price of homes in BC by the end of 2011.

Should I wait to buy? I am asked.

Well, the same report predicts an increase of 2.3% for the balance of 2010. Assuming that there is no margin of error in these "studies" that would indicate a net decrease of approximately 1.2% if you were to wait for the next 18 months to make your purchase.

Lets do some common sense math. If I was to purchase the average Vancouver home at approx $700,000, a 1.2% savings would be $8,400. Nothing to sneeze at by any means! That would cover the land transfer tax on your eventual purchase. But, lets be realistic here.....if you are renting right now waiting to buy, you will undoubtedly spend more than $8,400 over the next 18 months. Also if mortgage rates increase by the predicted 1 -2 % over the same period you could pay $ 6,000 - 12,000 more in mortgage interest (assuming a 10% down payment).

If you are already a homeowner and are thinking of a move, you know how hard it is to time the sell and the buy, without a rental period in between to catch the best conditions of each transaction.

My advice?? If your purchase is for your home, get out with a qualified realtor and get a good deal on what you want....now.

Peter McKinnon, Centum Pacific Mortgages
Vancouver
http://www.peterlmckinnon.com/
peter_mckinnon@centum.ca

Rate Update May 28th

2010-05-28T14:21:00.000-07:00

Mortgage Rate Update

Government of Canada bond yields have dropped to 2.60%. and 5 year discounted fixed are currently 4.39%. In March when bond yields were this low, 5 year rates were at 3.69%. Could be some room for further declines. Next Tuesday, June 1st, is the next rate announcement from the Bank of Canada so we'll have to wait and see. Earlier this week, the OCED was pressuring Mark Carney to raise interest rates in Canada to bring them back to natural levels, but it is still anybody's guess.

Fixed rate mortgages

3 year 3.75%
5 year 4.19% best discounted
5 year 4.59% standard

Variable rate Mortgages

3 year 1.65% special
5 year 1.75%

Contract qualifying rate
6.10% (applies to variable mortgages and terms of less than 5 years)

Retreating prices put rate hikes on back burner - The Globe and Mail

2010-05-19T19:42:00.000-07:00

Retreating prices put rate hikes on back burner - The Globe and Mail

Who says sandwichboard advertising is dead??

2010-05-12T16:31:00.000-07:00

Caught Marvin Barclay of Century 21 In Town Realty trying out a new, or is it an old marketing technique!

He has created his own mini monopoly cards as his business cards. And created these larger versions to wear as he walks around downtown.

http://www.century21.ca/marvin.barclay

Time will tell if the age old sandwich board is making a comeback!

5 year Fixed Rates Ease with Bond Yields

2010-05-11T10:29:00.000-07:00

Just like the weather man, economists can be wrong as well!!

After the quick jump in interest rates by the big banks forseeing their "costs" rising as the bond yields climbed to 3.00%, we now have a easing this week. We have had a number of lenders drop their 5 year rates by 15 basis points. Why?

GREECE! With the crisis is Europe unfolding in the financial markets we have had a flight back to North American assets. Have you noticed the stronger US dollar? This is because investors who are worried about their exposure to European investments, are they selling them and moving back into American and Canadian dollars. A very popular, "safe" investment is to buy our government bonds. This has led to a lowering of 5 year government bond yields..
http://www.bloomberg.com/apps/quote?ticker=GCAN5YR%3AIND

How low will they go? When will they move back up? These days that is like picking the winning 6/49 numbers! But if you are shopping now or have any mortgage renewal or refinancing to do get on with it!

Regards,

Peter McKinnon
peter_mckinnon@centum.ca
http://www.peterlmckinnon.com/

Excerpt from Canadian Mortgage Trends.com

2010-04-30T09:41:00.000-07:00

Typically a lender’s biggest fear is an informed consumer,” says mortgage planner, Peter Majthenyi. (See this Q&A with Rob Carrick)

That’s because informed consumers are more likely to make choices that are less profitable for lenders.

Going variable is one choice that’s yielding less lender profit these days. For many lenders, gross margins are currently over 20 basis points better in fixed-rate mortgages than in variables.
The big banks salivate at the thought of homeowners paying elevated 4.65% 5-year bank rates. (We’re talking discretionary fixed rates here. The banks’ publically disseminated “special offer” rate is even higher: 4.85%.)

At 4.65%, the average 5-year fixed bank mortgage is 156 basis points over the GoC bond yield (based on Thursday’s close). That’s a succulent spread for a lender. Remember: Five weeks ago, some lenders were selling mortgages at spreads of half that.
Not everyone’s biting, though.

The 2.9 percentage point gap between fixed and variable rates is wide enough to drive a truck through. Informed and well-qualified consumers are therefore comparing today’s fixed rates to prime - .50% variables—and many are taking their chances in a floating rate.

Read the full article at http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2010/04/views-on-variables.html

Great Q&A Session on Variable Vs Fixed Mortgages

2010-04-30T09:38:00.000-07:00

http://www.theglobeandmail.com/globe-investor/personal-finance/qa-variable-rate-vs-fixed-rate-mortgages/article1545026/

Peter McKinnon
www.peterlmckinnon.com
peter_mckinnon@centum.ca

RBC at it again pushing rates up!

2010-04-26T13:50:00.000-07:00

Even though bond yields are taking a breather from their recent steady advance, the Royal Bank has seen fit to raise their fixed rates yet again. As of tomorrow their 5 year posted rate is increasing to 6.25% giving the discounted rate a 15 basis point rise to 4.85%.

My question is this....why do all the banks follow RBC? Just imagine if other lenders actually followed the free market system and determined their own rates based on their business parameters? Then consumers would have genuine choices in the market instead of the monopoly that is the Canadian banking system. Oh we receive praises from around the world for our banks, but there is a reason they are so profitable, we pay for it!!

My soapbox aside, be prepared for all the other members of our financial system to follow the leader and raise rates this week. Get those rate holds in place! Today's 4.59% may seem like a steal in a month or so the way things are heading!

BoC Holds Rates,but opens door for June hike

2010-04-20T13:52:00.000-07:00

The Bank of Canada held the overnight rate target at 0.25%, but surprised markets by removing the conditional commitment to keep rates there until the end of the second quarter of 2010. This increases the likelihood of a rate increase in June.

The Bank of Canada has recognized stronger-than-expected near term growth in both the global and Canadian economic recovery, but remains cautious about the great amount of uncertainty that remains as monetary and fiscal stimulus unwinds.

Peter McKinnon
www.peterlmckinnon.com
peter_mckinnon@centum.ca

So you've got a great rate approval.....BUT

2010-04-16T11:09:00.000-07:00

It has come to my attention that a lot of people in the market right now who are shopping for a property purchase may be in for a rude awakening when it comes time to remove financing subjects.

For example, I met a couple at a recent open house who have a great rate from a lender that is good for 90 days and they are looking a properties in the $450,000 range based on figures provided by their mortgage specialist. When I asked if this figure was based on the old qualifying rate or the new rules which come in effect on the 19th? They weren't sure.

What realtors working with their clients and purchasers need to understand is that under the new guidelines, which many lenders are already using, the amount of money one can qualify for will be based on the Bank of Canada Contract rate, NOT the rate they will receive on their mortgage. For example, I have clients with a 3.89% rate hold, but when they make an offer to purchase and we submit the deal the lender will use the current 5.85% contract rate!

How does this effect their purchasing power?

On an income of $100,000 this couple could get a $430,000 mortgage at 3.89%, but with the 5.85% contract rate, this income will only allow a $355,000 mortgage. That's a $75,000 reduction in purchase price.

So if you or your clients have been given a price range to work with, I would strongly suggest you contact your mortgage specialist and get an update based on the coming changes.

Peter

Tips for First time buyers

2010-04-13T10:40:00.000-07:00

I have mentioned some great web resources for mortgage information and articles, one of my daily reads is www.canadianmortgagetrends.com

Here are some great things to consider when entering the mortgage market!!

1) Allow five business days for financing in your purchase offer. Realtors sometimes ask buyers to get preapproved and write "clean" offers without conditions. But preapprovals don't guarantee a "final" approval. Preapprovals are often just glorified rate holds. Proper financing conditions give you time to arrange an iron-clad approval before you commit to buy.

2) Start with the term. The term you pick often effects the total interest you pay more than the rate itself. Consult a professional to pick the right term from the start. Have him or her run a rate simulation to show which term would save you the most money over five years.

3) Negotiate wisely.If your credit is strong, use the Globe's mortgage rate table at tgam.ca/mortgagerates as a starting point for rates. Ask your mortgage planner to find a lender who will beat the best rate for your province. Use a mortgage professional who compares all lenders; not just a handful.

4) Go short. Don't consider a long-term amortization (such as 30-35 years) unless you are confident you'll later have spare funds to make prepayments. A 35-year amortization will lower your monthly payments 16 per cent on a 4-per-cent, $250,000 mortgage. However, the total interest you'll pay increases 32 per cent versus a 25-year amortization.

5) Tap your RRSPs for a down payment. If you qualify as a first-time home buyer, you and your spouse can each use up to $25,000 from your RRSP as a down payment. CRA will not deem that money taxable income as long as you annually repay 1/15th of the amount withdrawn.

6) Don't pay for what you don't need. Paying extra for an open mortgage, a "capped" variable rate, cash back, large prepayment options, or a 10-year term is often unnecessary. Have your mortgage professional compare the estimated interest cost of the alternatives.

7) Consider a hybrid. Hybrid mortgages are part fixed and part variable. You determine how much of your mortgage goes in each part. Since no one knows how high rates will climb, hybrids nicely diversify your interest-rate exposure.

Rate Update March 31, 2010

2010-03-31T14:05:00.000-07:00

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

RBC and TD pull the trigger!! Interest rates head up

2010-03-29T14:11:00.000-07:00

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

Pre Approvals and upcoming changes April 19th

2010-03-15T15:05:00.000-07:00

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

Banks push government for New Rules!!! And get them!

2010-02-16T16:29:00.000-08:00

Funny how in a "free" market society our big banks have all pushed the government for TIGHTER lending rules? What happened to "competition"?? Not in the Canadian banking system! It seems lenders can't regulate themselves so they have asked the government to help them with it. And Joe Flaherty has answered the call.

As of April 19th the following changes will be implemented in mortgage lending:

1) All borrowers must meet the standards for a 5 year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term; - this basically will make it harder for people to qualify for a variable rate product. For instance right now debt servicing ratios use a 3 year rate typically 1.0% lower than a 5 year rate.

2) The maximum amount one can withdraw in refinancing their mortgage will be reduced to 90% from the current 95% of the value of one's home; net effect of this change will be to limit owners from using their home equity to consolidate debt, do renovations, etc.

3) Non-owner occupied properties will require a minimum down payment of 20%. - this change is to reduce speculative investment in the market. Right now investors can buy a rental property with as little as 5% down. For many investors 20% might be a little "rich" and will take their money elsewhere. Time will tell if this will cause a reduction in rental inventories in the market and overall higher rents, especially in hot investment markets like Vancouver.

Now I don't mind changes to benefit the economy and some of these new rules may help. But when the motivation behind the changes seems to be the big banks trying to protect themselves from losing market share to competitors, that just doesn't sit right.

Well at least interest rates are still low!

GO CANADA GO!!

Peter McKinnon

www.peterlmckinnon.com

2010-01-25T13:45:00.001-08:00

Great article for understanding why mortgages are so cheap!! it's taxpayer money......http://ping.fm/NhapM

2010-01-20T12:57:00.001-08:00

More Canadians using Mortgage Brokers.....
http://ping.fm/sdnBK

Inflation rate low, bond yields ease

2010-01-20T12:39:00.000-08:00

The annual inflation rate rose a less-than-expected 1.3 per cent in December, said Statistics Canada, and core inflation stayed at 1.5 per cent - a half a percentage point below the Bank of Canada's target rate.

In addition, consumer prices dropped last month.

"The way markets look at it is that because inflation remains subdued, it puts even less pressure on the Bank of Canada to raise interest rates and that softens the currency," Bank of Montreal chief economist Douglas Porter told The Canadian Press. He added that business can't raise prices due to the weakness of the economy and the strength of the Canadian dollar has quashed import prices.

Bond yields continue their decline and are hovering around 2.55% this week.

What does this mean? Inflation is the driver for the short term lending rates set by the BoC so there is no reason for the bank rate to move up. 5 year bond yields drive the fixed term rates, indicating the long term rates should hold steady as well.

There is still time to take advantage of the low rates!

peter_mckinnon@centum.ca
http://www.peterlmckinnon.com

2010-01-19T12:06:00.001-08:00

BoC holds steady,no rate moves til June. 5yr Bond yields easing from highs so 5yr rates should hold for now. http://ping.fm/yuDGZ

2010-01-18T12:34:00.001-08:00

Variable rate special PRIME MINUS 0.40%!!! only 1.85% with a Nov 2012 Maturity. Click today http://www.peterlmckinnon.com

2010-01-14T14:23:00.001-08:00

Variable rate drops to prime minus .20% on 5yr,
3yr special at prime minus 0.30%!! More to come!
http//:www.peterlmckinnon.com

Interest Rate Update - majors lower variable rate

2010-01-14T13:58:00.001-08:00

We have had 3 AAA lenders drop their variable rate mortgages.

One is a 3 year term at prime minus 0.30%, that's 1.95%!!
the other 2 are offering a 5 year term at prime minus 0.20% or 2.05%!!
Both lenders have great prepayment options of 20-25%

Will this lead to more "variable rate drops"? I believe it will, simply because it makes good business sense. They gain market share with the "sale" price with the intention of moving you into the higher rate fixed products once the rates start to move up which of course we know they will, just a question of time!

Current interest rates for Thursday, January 14th, 2010

Fixed Rate
1 year 2.35%
3 year 3.25%
5 year 3.89%
5 year Quick Close 3.74%

Variable Rate
3 year Special 1.95% prime minus 0.30%
5 year 2.05% prime minus 0.20%

http://www.peterlmckinnon.com/
peter_mckinnon@centum.ca

Peter McKinnon
cell 604-506-6789

2010-01-11T15:15:00.001-08:00

Great article on Bank of Canada, the housing market and its effects on interest rate hikes
http://ping.fm/vNih6

2010-01-06T17:02:00.001-08:00

Jobs data may lead to higher interest rates....
http://ping.fm/eJ7ia

Rates on the way up?? Jobs may tell the story...

2010-01-06T16:45:00.000-08:00

After the rise in bond yields during December, lenders have started to rattle the chains on 5 year rates. 5yr yield is hovering precariously below the 15 month highs set in September/ October at 2.74%. See the following chart:

http://www.bloomberg.com/apps/quote?ticker=GCAN5YR%3AIND

This will be the third attempt at crossing the 2.90% mark as as most investors and chart analysts will tell you, the third times a charm! So how do we know which way things will run?

Most lenders are waiting for the US and Canadian jobs reports due out on Friday morning.

If the job numbers are good, rates will be going up!
If they are bad, rates will probably hold steady.

If I were in the market right now I would be asking my mortgage professional for a rate hold on Thursday just to hedge your bet.

Peter McKinnon
peter_mckinnon@centum.ca
www.peterlmckinnon.com
604-506-6789

2010-01-05T11:27:00.001-08:00

What will rising rates look like and what can you do now to protect yourself?? http://ping.fm/bDMEg

2010-01-04T09:40:00.001-08:00

Happy New Year!! Well it's time to get back at it. Any mortgage renewals coming up?? Great article..http://ping.fm/YZvFO

2009-12-15T11:51:00.001-08:00

Rate Update: 5 year fixed NOW 3.74% 3 Year 3.40% Variable Rate Special 2.00% til Jan 31st! http://www.peterlmckinnon.com

2009-12-08T15:09:00.001-08:00

BOC holds steady at 0.25% RBC lowers rates, 4.19% 5 yr fixed. Watch for other lenders to head lower! Could we see 3.75% again??

What's up (or more appropriately down) with rates?

2009-12-02T11:23:00.000-08:00

With bond yields dropping so are 5 year rates!

Best discounted no frills 5 year fixed now at 3.84% this is a quick close product with limited prepayment options.

If you like more features like 25% prepayments….I have a major lender that has just dropped their five year to 3.99% from 4.19%! more to follow? I think so. Most of the big banks wait for someone to lead the way and then they will follow suit.

This same lender just joined the non bank lenders with a variable at prime minus 0.10%!

Maybe we'll all be in for a nice Christmas present and a Happy New Year!

All the best!

Peter McKinnon 604-506-6789
Centum Pacific Mortgages
peter_mckinnon@centum.ca
www.peterlmckinnon.com

2009-12-02T10:49:00.001-08:00

No frills 5 year fixed now at 3.84%
Major lender just dropped to 3.99% from 4.19%! more to follow? www.peterlmckinnon.com to apply!

2009-11-20T12:40:00.001-08:00

5 Year fixed drops! What did I tell you yesterday!
3.89% 5 yr fixed, closed. http://www.peterlmckinnon.com

2009-11-19T12:10:00.001-08:00

BIG 5 Drop 5 Year rates to 4.19% stay tuned for my discount lenders heading below 4%!!! Could we see 3.75% again???

2009-11-17T16:14:00.001-08:00

Variable Rate drop special! 5 Yr Now prime less .10 or 2.15% 3 yr Special prime less 0.25% or 2.00%!!!! http//:www.peterlmckinnon.com

2009-11-06T12:13:00.001-08:00

Gastown Open House Sunday 2-4pm 36 Water St
Check it out http://ping.fm/t41MD

2009-11-06T12:10:00.001-08:00

Interest Rate Update ----lenders drop 5 yr fixed to 4.09%, 2.25% VRM holding steady
http://www.peterlmckinnon.com

Economic Highlights GDP, Interest Rates, Dollar

2009-10-30T15:45:00.000-07:00

Weekly Economic Hightlights from TD Economics:

Canadian GDP fell 0.1% in August, dampening prospects for the potency of Canada’s Q3/2009 rebound.
Canadian industrial product and raw materials indices declined in September, pointing to continued downward pressure on core consumer prices from cheaper inputs.
Employment Insurance beneficiaries declined in August, but likely exhaustion rather than new jobs.
Bank of Canada sticks to script that higher dollar means slower recovery, pointing to low rates for longer.

Happy Halloween!!

Peter_mckinnon@centum.ca

http://www.peterlmckinnon.com

2009-10-29T12:15:00.001-07:00

Rate update Oct29th SPECIAL 3.99% 5yr fixed, 4.15% Standard 5 yr fixed, 5yr VRM 2.25%
www.peterlmckinnon.com

2009-10-22T14:57:00.001-07:00

How to rebuild your credit rating...blog update
http://ping.fm/PPIhq

How to Rebuild your Credit Rating

2009-10-22T14:37:00.000-07:00

I have had a few clients that have had some trouble with their credit bureau report which affects their ability to get a mortgage at normal rates. So how does one improve their bureau score?

STEP ONE: View your credit file to ensure all the information about you is correct, and that all your outstanding debts have been paid off. To get your credit file, contact,
TransUnion Canada http://www.transunion.ca
Equifax Canada http://www.equifax.com

This is important as many credit providers are happy to update your file with bad news but seem to overlook updating your file when you've caught up or paid off an account completely.
If there are errors contact the lenders and have them update the credit bureau.

STEP TWO: Arrange a loan, likely at a very high interest rate, and then have a perfect payment record over the next 12 months.
Follow up: After a year of making your payments in full and on time, try to re-negotiate your loan down to normal rates.

Car loans are great for this. Car dealerships are usually more lenient especially if you're looking to finance a newer car.

STEP THREE: Get a secured credit card, where you keep money on deposit with your card company to offset the maximum you can charge on your card.
Follow up: After two years of paying your card off on time, apply for a conventional credit card.

Unfortunately the process does take time, usually 12 - 24 months of consistent payments, so if this is your situation just get started and you'll be able to go back into debt before you know it!!

peter_mckinnon@centum.ca
www.peterlmckinnon.com

2009-10-14T17:26:00.001-07:00

Variable rates at prime MINUS 0.10% but Fixed rates are on the rise! Majors have moved to 4.34%!! apply now http://www.peterlmckinnon.com

2009-10-05T13:31:00.001-07:00

Rate update for October 5th ---- 5 year Variable @ prime!! 2.25% 5 year Fixed 3.75% http://www.peterlmckinnon.com to apply

Broker Loyalty?

2009-10-01T16:48:00.000-07:00

I have noticed an interesting phenomenon since joining this industry.

Clients who have spoken with a financial institution about their mortgage needs and have been quoted a given rate and terms. Then our mortgage shoppers go to the internet or broker market and find out they could get a much cheaper rate elsewhere.

After working with a broker to secure the better rate in a comparative product, the bank follows up with the clients (hopefully, although not all banks are very diligent on this process) to find out that they are working with a broker and have secured a better rate.

At this point the banks representative says "oh, I can get you that rate" or my personal used car salesman's favourite " let me check with my manager and see what I can do". Miraculously they come back with a slightly lower rate.

My question is this? What do you do? Take the lower rate from the bank, who obviuosly didn't give you their best rate the first time around, OR do you stick with your broker who was truly looking after your best interest from the start?

Luckily in my experience most people take the second option, but there's always a few that cause me to shake my head!

Rate update 3.75% 5 year fixed, 2.35% Variable 5 year

4 year Special variable at prime!! 2.25%! til Oct 30th.

Visit http://www.peterlmckinnon.com to get started!

2009-09-25T14:13:00.001-07:00

Rate drop update!!! 5 year fixed now 3.75%!!!!!
Variable prime plus 0.10%!
www.peterlmckinnon.com to apply

Vancouver Home Prices 10th Highest in North America

2009-09-24T09:05:00.000-07:00

If you are wondering when the bubble is going to burst in Vancouver real estate, don't hold your breath!

Vancouver remains the most expensive city for houses in Canada and the tenth most expensive city in North America, according to the 2009 Coldwell Banker Home Price Comparison Index, which looks at the prices of 2,200 square foot homes in different markets.

Vancouver's average price was $1,262,625 (CDN) while Fort McMurray, Alta, beat out Calgary and Edmonton with an average price of $638,000 CDN. Toronto's average price was $824,347 CDN.

"Despite record-breaking prices in many of Canada's major markets, these homes are selling, as buyers take advantage of today's historically low interest rates," said John Geha, president of Coldwell Banker Canada Operations, who described the type of house surveyed in the study as the "aspirational home." "These move-up buyers have been a critical component in our resurgent real estate market, and will continue to play a major role in Canada's recovering economy.

Check out this story to see why the world considers our real estate a bargain!

http://www.cbc.ca/consumer/story/2009/09/23/realestate-global.html

2009-09-21T11:51:00.001-07:00

Rate Drop Update!!! 5 yr fixed 3.89% variable prime plus 0.10% or 2.35%! www.peterlmckinnon.com to apply

2009-09-11T10:19:00.001-07:00

BoC holds steady reiterates outlook....rate update
http://ping.fm/bcN5v
http://ping.fm/ROlkN

2009-09-11T10:16:00.001-07:00

Looking for something to do this Sunday? head down to the COHO Festival at Ambleside in West Van. I am playing at the beer garden 1:30 -5pm

BoC Holds Rates and Outlook

2009-09-10T10:35:00.000-07:00

Bank of Canada is holding fast at 0.25%, no suprises but it still nice to hear them reiterate their stance and outlook. Some bank economists are even predicting rates may hold til the end of 2010.

Read more:
http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2009/09/boc-keeps-rates-steady.html

Can't predict the future, but for now, we have lenders easing their rates in all products, variable and fixed terms.

Here are my current best rates...........OAC

Fixed Rate Products

Term Rate
1 Year 2.55%
2 Year 2.90%
3Year 3.45%
4 Year 3.89%
5 Year 4.09% Standard
5 Year* 3.95% 30 Day Closing Special
7 Year 5.20%
10 Year 5.40%

5 Year Variable prime plus 0.20%
Open variable prime plus 0.80%

http://www.peterlmckinnon.com

peter_mckinnon@centum.ca

2009-09-02T16:58:00.001-07:00

Blog update on latest rates and trends.
http://mckinnonmortgages.blogspot.com/

Big 5 drops variable rate to 0.20% leading the way for more drops to come??

Interest Rate Update

2009-09-02T16:35:00.000-07:00

Today we've had one of the Big 5 lenders drop their variable 5 year rate to 0.20%!

This is below the best that many non bank lenders are offering, which usually leads to more competitive responses from all lenders! And who wins? the mortgage customer!

Bond yields are holding steady in the mid 2.50% range so this may give some room for the longer term rates to move.

Current rates:

1 year 2.55%
3 year 3.59%
5 year 4.19% Standard
5 year 3.95% Quick Close

Closed variable bank prime plus 0.20% or 2.45% currently.

Check out the rates regularly on my webiste at
http://www.peterlmckinnon.com/

or contact me directly for the latest rates and products

peter_mckinnon@centum.ca

BC Housing sales have doubled.....Friday, August 28,2009

2009-08-28T13:54:00.000-07:00

since the january bottom.

That's according to Cameron Muir of the BC Real Eastate Association.

Buyers are coming back in droves causing multiple offer situation for many properties, but luckily for purchasers there hasn't been a jump in overall prices.

Good news is that the Real Estate board expects only a 1 percent increase in prices until well into 2010. You add the lack of inflation threat and Bank of Canada keeping interest rates low and we have a great opportunity to get that first home, upgrade(or downsize), or add an investment property, or second home.

read more at
http://www.vancouversun.com/business/real+estate+upward+climb+rest/1935829/story.html

RATE UPDATE::

Variable Rate 5 YR .................2.55% (Custom maturities at prime plus 0.15%)

3YR Fixed.................................3.59%

5YR Fixed.................................4.15%

5YR Fixed SPECIAL...............3.99%

http://www.peterlmckinnon.com/

peter_mckinnon@centum.ca

Mortgage Rate Update August 25th

2009-08-25T14:15:00.000-07:00

Lenders are starting to lower rates!

Featured Rates for August 24, 2009

5 Year Quick Close 3.99%
5 Year Standard 4.15%
3 Year Standard 3.59%
5 Year Variable Prime + .30%

Current Bank Prime =2.25%

peter_mckinnon@centum.ca

http://www.peterlmckinnon.com

#2208 - 550 Pacific Blvd Yaletown Open house

2009-08-21T12:16:00.000-07:00

I will be working with Nick Nikjou this Sunday 2 - 4 pm at the fabulous AZURA by Concord Pacific #2208 - 550 Pacific Blvd, 1brdm and den with amazing amenities!
Check it out at

http://www.mikestewart.ca/listings.php

and for Nick http://www.century21.ca/nick.nikjou

Check out the latest rates at http://www.peterlmckinnon.com or call 604-506-6789!

2009-08-21T12:09:00.001-07:00

AZURA OPEN HOUSE SUN 2-4pm #2208 - 550 Pacific Blvd. Check out this 1 bdrm and den in Yaletown http://ping.fm/Lrp45

2009-08-20T09:33:00.001-07:00

Inflation lowest in 56 years! Means interest rates will hold.....
http://ping.fm/ntNf6

Inflation NOT a concern, bond yields slip

2009-08-19T13:10:00.000-07:00

The latest report from Stats Can says inflation is at its lowest in 56 years!
prices actually declined by 0.9% last month. Much of this decline is attributable to lower gas prices off 40 cents a litre on avergage since last July's high of $1.37/litre, but the core inflation rate is staill at a very comfortable 1.8%.

Read more: http://www.globeinvestor.com/servlet/story/RTGAM.20090819.wcpi0819/GIStory/

What does this mean for mortgage interest rates?

Well the BoC uses a 2.0% core inflation rate, so 1.8% indicates that Mr. Carney will be sticking to his no increase policy. There has also been a drop in the 5 year bond yields on this news to 2.49%, which means that some lenders may look at easing their fixed rates from the current 4.29% to maybe the 4% or lower range. These will most likely be the non-bank lenders so you'll want to make sure your mortgage broker is on the ball for you!

http://www.peterlmckinnon.com

peter_mckinnon@centum.ca

2009-08-14T16:15:00.001-07:00

Vancouver housing resales up 90% from July 2008
http://mckinnonmortgages.blogspot.com/

Mortgage Rate Update Friday, August 14th

2009-08-14T14:42:00.000-07:00

Interest rates holding at lows! Check it out...

Variable 5yr closed bank prime 2.25 + .35%

Fixed 5yr Closed 3.99% Special 30 day closing

Standard 5yr fixed 4.29%

Our friends at MCAP are offering a 2.40% variable maturity for May 2012. Very cheap and interesting product for those who want to ride the variable but keep their options open for renewal in approx. 2years and 10 months! http://www.mcap.com/Home.aspx

Big news for the week July home sales for Vancouver saw a 90% increase over 2008! So if you are in he market for property in Vancouver get approved and get ready to make an offer the first look. Listings are scarce and you need to move fast to get in.
Check out the details at the Globe and Mail:
http://www.globeinvestor.com/servlet/story/RTGAM.20090814.whousing0814/GIStory/

Have a great weekend!

2009-08-13T11:11:00.001-07:00

VRM SPECIAL Bank Prime plus 0.15%!!! Maturing May 2012 That's 2.40% 604-506-6789

Rate Update Monday, August 10,2009

2009-08-10T14:04:00.000-07:00

Current mortgage interest rates:

5 year Fixed Closed 3.99%
5 yr VRM Closed 2.50%

Average MLS resale price for local markets
City June 2008 June 2009
Halifax $235,312 $240,093
Saint John, NB $170,199 $172,731
Montréal $269,257 $275,578
Ottawa $298,336 $307,793
Toronto $395,918 $403,918
Hamilton/Burlington $287,249 $297,117
Winnipeg $206,327 $212,542
Saskatoon $310,386 $276,867
Calgary $418,866 $392,601
Edmonton $341,376 $328,285
Vancouver $611,613 $575,949
Victoria $476,639 $476,686

Source: Canadian Real Estate Association

2009-08-07T13:58:00.001-07:00

Mortgage rate update 3.99% 5YR Fixed 2.50% Variable.

2009-08-07T13:57:00.001-07:00

Open house this Sun 2-4 at 1111 Alberni "Shangri La check out this place! http://ping.fm/gXTUd
http://ping.fm/uBDhT

2009-07-31T11:55:00.001-07:00

Hmmmm...Fireworks, Blackcomb and Kelowna fires, Pride weekend, heat wave? Thankfully its a long W/E go enjoy!

Tough times, heat wave, LONG WEEKEND!

2009-07-31T11:43:00.000-07:00

With so much going on this week its tough to find clarity of a topic.

Let's see..... We have Fireworks - Pride Festivities - Blackcomb Fires - Okanagan Fires

38 degree Heat Wave - New HST tax coming..... phew!

I am just glad its a long weekend! And I am not working!
Go create some memories this weekend and don't worry...the world will sort itself out as it always does!

Cheers

5 year rates bottoming

2009-07-24T14:17:00.000-07:00

Well those pesky Bond yields have started to rise again!
Just passed 2.65% today after optomistic comments about an early recovery from the recession by Mark Carney of the Bank of Canada.

What does this mean to mortgage consumers? If you are a little uncomfortable with variable rate products currently offering 2.50% you might want to lock into your lenders current 5 year rate. We have many lenders currently offering 4.19-4.29% for 5 year fixed.

For more info http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2009/07/mortgage-advice-from-mark-carney.html

and to see the Mark Carney report:
http://watch.bnn.ca/#clip196425

Nobody knows the future, so remember to always consult a licensed mortgage professional about your individual situation.

2009-07-21T12:53:00.001-07:00

Bank of Canada keeps rate at 0.25%! Mortgage rates holding 2.60% variable and 4.19% 5 year fixed. http://mckinnonmortgages.blogspot.com/

BoC confirms rate hold

2009-07-21T12:43:00.000-07:00

There were no surprises today with the Bank of Canada rate decision....holding at 0.25% setting the Bank prime at 2.25%. The only factor to watch out for that may change this outlook is a rapid rise in inflation which right now is not a concern as the CPI actually decreased recently.

“Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010.” (That suggests at least 11 more months of prime rate at 2.25%.)

What does this mean to mortgage holders and those looking to get into the market??

If you have a variable rate mortgage you can feel comfort in knowing you'll have 10 - 11 more months to decide on locking into a 5 year product. If you are looking to enter the market or refinance the cost of borrowing will remain attractive for the next year or so.

Again, everyone's circumstances are different so make sure you consult with a mortgage broker when you're ready to go!!

2009-07-17T13:37:00.001-07:00

Anyone looking for a downtown pad? Come see me this weekend at the Shangri La! Open house Sat and Sun 1-4pm #2509 - 1111 Alberni Street
http://ping.fm/PtsUz

Oooo La La - the Shangri La!!!

2009-07-17T13:21:00.000-07:00

Hi All,

If you are in the market for a downtown getaway pad come by 1111 Alberni Street this weekend!! I'll be at an Open House with realtor extrodinaire Nick Nikjou of Century 21 In town Realty. http://www.century21.ca/nick.nikjou

Saturday and Sunday 1pm - 4pm

Gorgeous 2 bedroom 2 bath on the 25th floor!

Of course if you need any help with financing this $1,149,000 purchase you know who to call!!

2009-07-08T10:27:00.001-07:00

Rates stay at 4.24% for 5yr even though bond yields have slipped 40 bps... http://mckinnonmortgages.blogspot.com/

5 Year Bond Yields continue to slip....

2009-07-08T10:08:00.001-07:00

Well, just when you thought the trend was to higher 5 year rates, the Goverment of Canada 5 year treasury yields are dropping again.

http://www.bloomberg.com/apps/quote?ticker=GCAN5YR%3AIND

In mid June, the 5 yr yields, which drive the banks setting of fixed rates, were topping 2.81% which led to the increase in rates for fixed term products by 0.75 - 1.00%. A month later? These yields are slipping below 2.40% as I write this, but are the banks going to move?

Bank insiders have said no based on 2 facts:

Profitability, if the banks keep the rates at present levels but their cost of borrowing drops they make more money!! And, after all, that's what they are in business for...

Secondly, with the ups and downs in many economic factors on a weekly basis the banks are in a "wait and see" mode. No point in lowering rates just to move them back up just as fast.

In my opinion, a little stability is welcome!!

2009-07-02T15:05:00.001-07:00

Great article in the Straight about variable rates and their effect on mortgage payments...http://ping.fm/IvO5O

Bond Yields Easing

2009-06-24T13:06:00.000-07:00

Is the Fed's quantitative easing working?

Maybe....after the meteoric rise in 5 yr yields and interest rates on mortgages over the last 3 weeks, the 5 year bond yields are easing slightly back down to 2.54% from a closing high of 2.81%.

The big banks last moved their five year rates back when the yields were at 2.69% so does this mean rates may come down? I wouldn't bet on it just yet, but I think this means things will remain stable for the next few months. No drastic up or downs for now.

2009-06-23T13:39:00.001-07:00

Mortgage Rate Update! Variable 2.65% 5 Year Fixed 4.35% Get a preapproval today!
www.peterlmckinnon.com

2009-06-12T11:53:00.001-07:00

BoC holding rates til June 2010.
http://ping.fm/FW6kq

BoC to hold rates til June 2010

2009-06-12T11:38:00.000-07:00

In a recent speech Mark Carney, Bank of Canada Governor, has stated again the BoC will not be raising the prime rate...

He said "The Bank of Canada has no plans to adjust its rates until at least next June as it attempts to keep inflation at check below two per cent. "

This is good news for those mortgagees in Variable rate products. Now if the 5 year bond yields would settle down we may see some leveling off in the fixed rate market, in which we have seen a jump almost 1%. Current 5 year average is 4.49% some lenders are holding at 3.99% but who knows for how long.

If you are in the market, contact your broker and get a preapproval to hedge your bet for the 90 to 120 days just in case!!

2009-06-09T13:38:00.001-07:00

Rates up 60bps in 9 days!
http://ping.fm/iYUBI

Bond Yields going up.....

2009-06-09T09:16:00.000-07:00

Bond yields have hit 2.71% today up 20 points from yesterday so.....
Fixed rates will continue to rise, and we may even see shorter term rates start to creep.

http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2009/06/bond-yields-jump-again.html

http://www.bankofcanada.ca/en/rates/bonds.html

2009-06-05T14:55:00.001-07:00

Rate update June 5th http://ping.fm/3MxtM

Interest rate update

2009-06-05T14:48:00.000-07:00

I have been warning for a while and boy it's happened fast!

Current rates:

5 Year Fixed 3.99 - 4.09%!

3 Year Fixed 3.15%

1 Year Fixed 2.75%

Closed Variable 2.65%

If you were waiting for the bottom, it's here!

http://www.peterlmckinnon.com

2009-06-03T14:33:00.001-07:00

Going...going...gone! Lowest 5 yr fixed 3.84% OAC as of Thursday!

2009-06-01T14:32:00.001-07:00

Mortgage Rate update...http://ping.fm/9ogPI

Fixed Rates UP, Variable Down?

2009-06-01T14:18:00.001-07:00

The Royal Bank is the first of the big 5 to raise its rates. They have set thier benchmark posted rate for a 5 year fixed at 5.45% up 20 basis points. This brings their "discounted" specials to 4.15% . http://www.globeinvestor.com/servlet/story/CNW.20090601.C9687/GIStory/

Most of us have expected this due to the rise in the bond yield which has hit 2.56. It is olny a matter of time til the rest follow.

Don't worry, we have plenty of lenders still holding below 4.00% and I am still able to put my cients in at 3.60% OAC, but I would suggest anyone looking to purchase or renew to get an application in now and hold your rates for the next 90 -120 days depneding on your bank or broker.

If you are still feeling lucky or just love the variable products, rates are coming down! Short term money is getting cheaper as the stimulus packages take effect, and with the BOC expected to hold the rate at 0.25% on Thursday, we have lenders dropping these to bank prime plus 0.40%. 2.65% for a closed 5 year VRM!

Going to be a great summer for real estate and finance!

Yes, Rates are going up!!

2009-05-29T13:16:00.000-07:00

It's official....5 year rates are up!

Just received updates from our last lenders at 3.54% both are now at 3.79% joining the trend started last week.

Now we'll have to wait and see what the big banks do.

2009-05-29T13:15:00.001-07:00

Mortgage rates going up!!! Lowest available 5 year fixed now at 3.79% OAC.

2009-05-29T12:01:00.003-07:00

5 year rates creeping up?? http://ping.fm/o5LBk

2009-05-29T12:01:00.001-07:00

Open house Sun 2-4pm #411 - 1989 Dunbar St. Kits

5 year Rates creeping up?

2009-05-29T11:43:00.000-07:00

Have received updates from 2 lenders this week that have moved their 5 year fixed interest rates up by 10 basis points. Is this the start of the uptrend? Could be.....

The lenders in question are non bank institutions that were discounted from many of the bank rates so when they go up they are just coming into the range where many of our lenders have always been, in the 3.79 - 3.99% range.

If you are currently in a variable, especially prime plus, product and your not in a gambling mood, you may consider locking in to your lenders current rate.

If you are currently looking at a renewal or new purchase in the next 3 months you should contact your mortgage broker and get a preapproval in place to protect the rate, just in case.
REMEMBER .....Just because you're preapproved doesn't mean you have to go with that lender.

2009-05-22T13:46:00.001-07:00

Check out the mortgage updates....http://ping.fm/F3sT5

2009-05-22T13:44:00.001-07:00

Downtown Vancouver Open House Sat & Sun 2-4pm #520 - 1133 Homer come on by! Bring coffee!

Variable Interest Rate Drop

2009-05-22T13:30:00.000-07:00

Some interesting things are going on. First, we have private lenders going lower than the banks for the variable business. I now have a few lenders at bank prime plus 0.60%! That's 2.85%!

On the other side of the fence the rumblings are starting to surface about the bond yield, which recently touched 2.27% (up 40 basis points in a few weeks), driving the 5 year fixed rates up. I have had one lender increase their 5 year rate from 3.54% to 3.69 to 3.75%. What does this mean?

May be time to lock in if you're in a variable product? Definitely time to keep an eye on things.
Stay tuned!

www.peterlmckinnon.com

5 year Fixed now 3.54% OAC

2009-05-15T13:25:00.001-07:00

Yes they've gotten even cheaper! 3.54% OAC

Since last September, your dollar is worth 20% more when qualifying for a mortgage, and your payments will be 20% less! Check out a great article at

http://www.canadianmortgagetrends.com/canadian_mortgage_trends/2009/05/cheaper-homeownership-lures-first-timers.html

I know most will be enjoying their long weekend but I'll be working...if you want to check out a great downtown condo come by the Pomaria, #1102 - 1455 Howe Street between 2pm and 4pm
and say hello.

Cheers