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Issue No. 2 June 4, 2009
Rates Move Upward! 
Well, as expected, the Fixed Rate Mortgage Rates went up across the board effective today, with most lenders landing the 5 year term at 4.09%, some offering a small discount to 3.99% for quick closings! The Bond Yield Spreads are still tight so we will have to continue to monitor them to see if further hikes are in the near future!
 
 
 Rod Minnes
Global West Mortgage

 
Bank of Canada Tries To Avoid Loonie Talk
Hits 8-Month High
Paul Vieira, Financial Post  Published: Wednesday, June 03, 2009
 
There is no suspense about where interest rates are headed, and so-called quantitative easing is likely not in the cards. Nonetheless, tomorrow's scheduled Bank of Canada rate decision will be read closely to see whether or not the bank's governing council offers its take on the amazing flight of the loonie, which yesterday touched an eight-month high.
Don't count on it, a number of central bank watchers say, even though there is concern the loonie's ascent -- up more than 21% from US76 in early March -- is being driven by U. S. dollar weakness, as opposed to increased demand for Canadian products. The impact could be profound, economists say, and deliver another blow to the country's struggling exporters.
"People will be squinting very closely to see if there is any concerns ... about the dollar, but the bank will try its best to avoid any headlines," said Craig Wright, chief economist at Royal Bank of Canada.
Sebastien Lavoie, economist at Laurentian Bank Securities, expects one sentence "maximum" about the currency. Even then, he said, the bank likely won't say much other than to acknowledge the dollar is trading above expectations.
"The bank doesn't want people to lose sight that inflation is the target -- not the loonie," he said, adding the Bank of Canada may not want to wade into the discussion on the dollar until its senior officials hit the speaking circuit.
At its last rate decision in late April, the Bank of Canada unveiled its own unique manoeuvre, declaring that its record-low benchmark rate of 0.25% would remain at that level until June of next year due to a recession that had "intensified."
"Since that decision, the economic data have turned out to be not as bad as feared. Further, global economic optimism has gained momentum, risk aversion has waned, and the worst-case scenario for the U. S. economy appears extremely unlikely."
"While there are still some hurdles for the Canadian economy, the largest one has perhaps been cleared," said Charmaine Buskas, senior economics strategist at TD Securities, noting that the first quarter was likely the worst for the Canadian economy.
Regardless, analysts such as Ms. Buskas expect the central bank to retain its commitment on its benchmark rate, nor make any meaningful changes to its recent economic forecast -- which projected a 3% drop in the economy this year, followed by a 2.5% gain next year.
 
First Time Home Buyers Check List!
 
I have put together a checklist of steps for a First Time Home Buyer that will help in knowing what to do next!  Here are the STEPS to take "before" making an offer on a home!
 
1. Contact a Realtor and a Mortgage Broker!
This is the most important step you will take, ask your friends and circle of influence for referrals for both! Your  Realtor/Mortgage Broker will present a step by step guide as to how to proceed purchasing a home.
 
2. Get Pre-approved for a mortgage amount from your Mortgage Broker!
Have your Mortgage Broker determine how much you qualify for and go find you the best rate available in the marketplace.
 
3. Discuss some of the various issues regarding Mortgage Financing with your Mortgage Broker!
 Items like payment type (bi-weekly, monthly, etc), pre-payment privileges, amortization, and terms should be discussed up front to help you determine a comfort level to fit your budget.
 
4. Pre-Approval in Hand, Go House Hunting with Your Professional Realtor!
 Get your Realtor to correlate your "wants" , "needs", "areas" that fit the unique Dream Home you are seeking. 
 
Part 2 of the Checklist next issue!!!! 
 
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