Son Of A Broker » Mortgage Interest Rates

Monday Mortgage Minute- Toronto June 21st

chris — Tue, 22 Jun 2010 01:41:04 +0000

It looks like the fixed mortgage rate market has stabilized after the bank of Canada’s decision to increase the prime rate earlier this month. While rates aren’t as low as earlier this year, mortgage interest rates still remain low historically speaking.

With signs that the housing market is cooling and interest rates are staying low you have decided that now is the time to buy your first home. But what is the first step? Unless you are lucky enough to have the cash available to purchase without financing you should talk to a mortgage broker before you even talk to a real estate agent or search on MLS. By sitting down with a mortgage professional you can eliminate uncertainty and save yourself a lot of time when searching for a home. In many cases it takes only a 10 minute conversation to get assessed. You’ll be able to set a realistic price range and become aware of any potential pitfalls that could arise when satisfying conditions for the lender. Visit my website www.TridacMortgages.com to submit a quick & secure online application or send me an e-mail if you have any questions?

Chris Molder – Son Of A Broker

2.80% – 1 Year Fixed

3.75% – 3 Year Fixed

4.25% – 5 Year Fixed

3.13% – Merix 50/50 Mortgage (Fixed/Variable hybrid)

P-.65 3 Year Variable

P-.60 5 Year Variable

Prime Rate is currently 2.50%.

NOTE: Rates are subject to change without warning at the lender’s discretion.

Click here to view the embedded video.

Monday Mortgage Minute June 7th 2010

chris — Mon, 07 Jun 2010 20:02:36 +0000

Following the Bank of Canada’s interest rate announcement last Tuesday we weren’t too sure in which direction the fixed rate market would move. Mortgage lenders responded by lowering their fixed rate mortgage rates. They also increased the spread on the 5 year variable rate mortgage from P-0.50 to P-.60 giving an effective rate of 1.90% based on the new prime rate of 2.50%. If you are just entering the interest rate market because you are considering buying or your mortgage is coming up for renewal it may not be obvious whether to go fixed or variable in this market. The circumstances are individuals are unique and there is a mortgage solution to suit your circumstances give me a call to discuss. 416.461.0204ext2

Chris Molder – Son Of A Broker

2.80% – 1 Year Fixed

3.75% – 3 Year Fixed

4.25% – 5 Year Fixed

3.10% – Merix 50/50 Mortgage (Fixed/Variable hybrid)

P-.50 3 Year Variable

P-.60 5 Year Variable

Prime Rate is currently 2.50%.

NOTE: Rates are subject to change without warning at the lender’s discretion.

Click here to view the embedded video.

How To Qualify For a Variable Rate Mortgage

chris — Tue, 04 May 2010 19:40:52 +0000

On April 19th 2010 new mortgage rules came into effect which have made it a little bit more challenging to qualify for a variable rate mortgage. Traditionally lenders qualified your maximum mortgage amount based on their current 3 year fixed rate. However, today it is a little bit more complicated and this post will help you if you are considering financing with a variable rate mortgage.

The rate used to qualify your maximum mortgage amount now depends on whether your mortgage is high ratio or not. Generally speaking if the mortgage you require represents 80% (i.e. less than 20% down payment) or more of the value of your home, then your mortgage is high ratio. If your mortgage is high ratio, then the lender is required to use the new Bank of Canada Qualifying rate. This rate is set every Wednesday by the Bank of Canada (Look for series V121764).

If your mortgage represents less than 80% (i.e. more than 20% down payment) of the value of your home then the rate used to qualify is the traditional 3 year fixed rate offered by your lender.

So in practical terms what does this all mean and what is the significance to you?

Based on the rates at time of publishing this post the difference is huge. Consider the following scenario for illustration purposes. Assume that your household income is $50,000 per year and you carry no outside debt. If your mortgage is high ratio then the maximum variable rate mortgage you could qualify for would be $184,815 based on the new bank of Canada qualifying rate of 6.25%.

If your mortgage is conventional (or represents less than 80% of the value of your home) then the total mortgage amount you qualify for would be $248,835 based on today’s best 3 year of 3.84%.

That is a difference of $64,000! That means that you may have to sacrifice variable to move into the neighbourhood or home that you want. That means that when you renew your mortgage you may be limited to taking a fixed. That means that you maybe forced to purchase with 20% or more to get the interest rate that you want.

New Merix Fixed 5 year with 90 Day Ratehold

chris — Tue, 04 May 2010 16:42:24 +0000

The problems over seas in Europe are already hitting close to home as bond yields have dipped for the last couple of days indicating that investor confidence is shaken. This bodes well for borrowers looking to get into fixed rate mortgages as there may be a reversal to the sharp steady increases to fixed rate mortgages over the past couple of weeks. Today, Merix Financial announced that they are lowering their fixed 5 year to 4.35%.

Click here to complete an application for a Merix Financial Mortgage today.

Monday Mortgage Minute May 3rd 2010

chris — Mon, 03 May 2010 16:28:42 +0000

Mortgage interest rates continue to climb for the 4th week in a row. There is a lot of discussion between observers and economists who think that the banks are prematurely driving rates up as highlighted in Rob Carrick’s Globe & Mail article, “Are Big Banks Jumping the Gun?”. With each passing week the variable option looks better and better, the only draw back is if you require a high ratio mortgage you will need to qualify based on the Bank of Canada’s Qualifying Rate which is an astronomical 6.25%. Not only is the spread between fixed and variable almost 3% there are a lot of forces at play which may prevent the prime rate from increasing significantly over the coming months, inflation is down in Canada and the Greek crisis will have far reaching global effects.

Chris Molder -Son Of A Broker

2.65% – 1 Year Fixed

3.85% – 3 Year Fixed

4.64% – 5 Year Fixed

4.39% – 5 Year Fixed Quickclose (Must close before June 15th)

3.25% – Merix 50/50 Mortgage (Fixed/Variable hybrid)

P-.40 3 Year Variable

P-.50 5 Year Variable

NOTE: Rates are subject to change without warning at the lender’s discretion.

Click here to view the embedded video.

Toronto Monday Mortgage Minute April 26th 2010

chris — Mon, 26 Apr 2010 19:11:40 +0000

After a very quick increase to fixed rate mortgages over the past 2 weeks mortgage lenders have started to compete for the new fixed 5 year. The standard rate is 4.59% however some lenders have introduced their quickclose rate at 4.39%.

The dilemma of deciding to go fixed over variable is on every borrower’s mind these days. Over the weekend the Globe & Mail featured the following article “Possible Rise In Mortgage Rates Pitting Couples Against One Another” . The spread between fixed (4.59%) and variable (1.75%) is about 2.80% which is significant. We know that in the coming months the Bank of Canada will increase the Prime Rate but with the latest report from Statistics Canada indicating that inflation was down in March it is questionable how quickly the prime rate will move up. Variable is looking like the better option these days but if you can’t make up your mind there is always the Merix 50/50. (3.25%)

5 Year Fixed – 4.54%

Quickclose 5 Year Fixed – 4.39% (must close before June 15th 2010)

3 Year Fixed – 3.84%

1 Year Fixed – 2.65%

Merix 50/50 Hybrid – 3.25% (current effective rate)

3&5 Year Variable P-.50% (1.75% current effective rate)

Rates subject to change without notice.

Click here to view the embedded video.

Monday Mortgage Minute & Interest Rates For April 19th

chris — Sun, 18 Apr 2010 16:07:14 +0000

A combination of positive economic data, the high Canadian dollar and probably the most important factor, the end of RRSP season in mid March when lenders artificially kept rates low to attract business, has caused two increases to fixed rate mortgages over the past 10 days. The difference between current fixed rates (4.59%) and current variable rate mortgages (1.75%) is 2.84% making variable a very attractive option today. Mortgages aren’t a one size fits all product, please call or write me if you would like to see what option suits you best.

Christopher Molder – Son Of A Broker

Fixed 1 year – 2.95%

Fixed 3 year – 3.95%

Fixed 5 year – 4.59%

SPECIAL Fixed 5 year – 4.44% (must close before May 31st)

3 or 5 year Variable P-.50 (1.75%).

NOTE: Rates are subject to change without warning at the lender’s discretion.

Click here to view the embedded video.

Monday Mortgage Minute For April 5th 2010.

chris — Mon, 05 Apr 2010 21:50:35 +0000

We all knew it was going to happen, we just didn’t know exactly when. Last Monday fixed rate mortgages increased. The fixed 5 year rate increased by a half of a percent from 3.89% to 4.39%. The following are current rates that I can offer but if you are feeling down that you missed an opportunity to capitalize on a low fixed rate mortgage consider my argument for opting for a variable rate mortgage at Prime minus 0.50 (1.75%). It appears that in the long run sticking it out with a variable may still be a good option. If you have questions or comments please feel free to write or contact me.

Chris Molder – Son Of A Broker

Fixed 3 year – 3.70%

Fixed 5 year – 4.39%

3 or 5 year Variable P-.50 (1.75%).

Click here to view the embedded video.

Monday Mortgage Interest Rate Minute – March 22nd

chris — Tue, 23 Mar 2010 00:36:51 +0000

Fixed mortgage rates are married to bond yields. As a mortgage broker I constantly look towards the 5 year Government of Canada bond yield to forecast where rates are heading to advise clients. Bond yields and fixed rate mortgages have a positive relationship. Put another way, when the yield on 5 year Canadian Bonds increases, the mortgage interest rate for a fixed 5 year mortgage also increases. Over the past 3 weeks we have observed an interesting trend. The bond yield has increased from 2.52% to 2.82%, an increase of +0.30% and yet lenders are not budging on their historically low interest rate offerings. If past trends are anything to go by a rate increase is just around the corner. In the mean time the following rates are still being offered.

Christopher Molder – Son Of A Broker

1 year fixed – 2.55%

3 year fixed – 3.35%

5 year fixed – 3.79%

SPECIAL * 5 year fixed – 3.69% (must close by April 26th 2010, purchase & refinance only)

3 year variable – Prime-.50% (1.75% effective rate)

5 year variable – Prime-.40% (1.85% effective rate)

Merix Financial’s 3 Year Variable Rate Down

chris — Wed, 17 Mar 2010 13:09:41 +0000

Merix is leading the way down with their 3 year variable rate mortgage. They announced yesterday evening that they are now offering Prime minus 0.50 which currently gives the borrower an effective rate of 1.75%! We are now back down to the same variable rate spreads that we saw pre-financial crisis fall 2008. The rate is good for 90 days, the rate is available for refinancing, purchases or switches at maturity of your existing mortgage. If you would like to explore if a 3 year variable is right for you, contact me.

Chris Molder – Son Of A Broker