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Issue No. 12                    "Representing Your Best Interest!!" September 30, 2009
Global West Receives Rate Special of 3.84% for 5 year term - 120 day Rate Hold!!!

Loyalty and Good Service spawns Special Discounts!!

 In an unprecedented move, Global West Mortgage has received a "Special Rate Discount" on all of it's 5 year term Mortgages for a limited period - in light of our companies excellent service and growth over the past few months! One of our lead lenders has offered this rate to all of our customers, with a "120 day Rate Hold", so we are eager to pass this on to your clients and referrals! Most other brokers are advertising a similar rate but the deal has to close in 30 days or less! to obtain that rate, NOT  OURS!!
Call us today!! 
Rod Minnes
Managing Broker

Rates as of Sept 30, 2009
Fixed Rate Mortgages    
6 month convertible            4.60%
1 year open                           6.55%
1 year closed                        2.75%
2 year closed                        2.90%
3 year closed                        3.45%
4 year closed                        3.79%
5 year closed                        3.84% 

Variable Rate Mortgages    
5 year closed - Prime* +.10%
5 year open   - Prime* + .80%

Home Equity Line Of Credit

Please call for product availability and rates.

Information from sources deemed to be reliable. Product availability and borrower qualification apply.
*Prime = 2.25%
Rod Minnes
Global West Mortgages
No guarantee rates will stay low, Carney warns
Paul Vieira, Financial Post, with files from Reuters  Published: Monday, September 28, 2009
Bank of Canada governor Mark Carney reiterated Monday that his pledge to keep the benchmark policy rate at 0.25% is "conditional" on inflation expectations, and should not be interpreted as a guarantee!
Governments will be required to undertake "concerted" and "sharp" efforts to restore fiscal sustainability once a market-led recovery is assured, Bank of Canada governor Mark Carney said Monday.
This will particularly apply to countries with ageing populations and "unsustainable entitlement programs," he said in a speech to the Victoria Chamber of Commerce.
While Mr. Carney was speaking about the need of governments to get their fiscal houses in order in the post-crisis landscape, the central banker also went to some lengths to reiterate that the central bank's pledge to keep interest rates at 0.25% until the end of June 2010 is "conditional" on meeting inflation targets. He told reporters afterward it would be unwise to assume current rates are "normal."
"It is an expectation, not a promise," Mr. Carney said in his remarks.
In recent weeks, analysts have debated whether the bank may move before that June 2010 deadline to raise rates given the strength in the economic rebound; or whether it may extend its pledge to keep a lid on growth in the Canadian currency, which it identifies as a risk to growth.
His speech touched on familiar ground, such as the risk of the rising loonie, but also attempted to set the landscape for the "hand off" from government-led growth to the private-sector-led expansion. His remarks suggested that stimuli - whether through government spending or low interest rates - should be kept in place "until the recovery is assured."
When that recovery is assured, certain countries have much work to do to clean up their public finances, Mr. Carney indicated. He did not cite specific countries in his remarks, but jurisdictions that fall under this category could include the United States and western Europe.
"Once the recovery is assured, concerted efforts will be necessary in most economies to restore fiscal sustainability," he said, adding it would be "particularly sharp" for some countries. "The fiscal cost of arresting the downfall will need to be first contained and then repaid over many years."
In Canada, the federal government has set out a framework under which it would remain in a deficit position until at least the 2014-15 fiscal year. But, the Conservative government said it would be able to reduce the amount of red ink in the coming years through cost controls and better growth.
More difficult decisions await legislators in Washington, which is recording shortfalls in the trillion-dollar range. Analysts warn of the need for U.S. legislators to cut spending and raise taxes, which could further keep U.S. consumers timid and undermine global growth.
Without aggressive efforts to keep the U.S. debt in check, bond investors will demand fatter yields that, in turn, could drive up inflation and weaken the U.S. currency.
But some governments are indicating they are prepared to take the steps Mr. Carney is calling for. Alistair Darling, Britain's finance minister, said Monday the country will make annual budget deficit reduction a legal commitment in order to bind future governments to getting the national debt down.
"Policy makers will have to act deftly to maintain stimulus long enough for private demand to take up the burden of growth, but not too long to undermine confidence in and the sustainability of that growth," Mr. Carney said. "The aftermath of the crisis will make considerable demands on structural policies in all countries, including Canada."
Among the structural changes in Canada would be the need for businesses to rely more on emerging markets as a source of demand as open access to the U.S. market becomes "less valuable," Mr. Carney said.
Afterward, he told reporters the U.S. economy would not be as "dominant" because that economy is going through a multiyear adjustmen

Read more:
Rising sales, housing prices point to recovery, says Re/Max
The worst is over in the Canadian residential housing market, according to a new industry report that forecasts growth in the sector in the fourth quarter of the year.
According to the Re/Max Bricks and Mortar Report, "The bounce-back that began in early spring has made this recession one of the shortest on record for real estate."
Sales have increased in more than half of the 11 markets surveyed for the report, and values have surpassed "record-breaking" 2008 levels in seven of the markets.
"The strength of the residential housing sector cross-country has taken many economists and housing analysts by surprise once again," said Elton Ash, regional executive vice-president, Re/Max of Western Canada.
"In terms of its impact on the resale market, by historical standards, this recession was one of the mildest. . . . While there may still be some challenges down the road, the worst is definitely behind us in the housing industry."
Low interest rates and falling housing prices in the midst of the economic downturn helped drive sales growth, Re/Max said.
Sales in Vancouver, one of Canada's most expensive housing markets, rose 14 per cent from January to August, while sales were up 7.4 per cent in Victoria over that period, 6.2 per cent higher in Edmonton and up five per cent in Regina. In Ottawa, where the real estate market remained fairly steady through the economic crisis because of the city's relatively stable employment situation, sales were up 2.4 per cent.
Nationally, the average price of a home is about $312,585, up 0.5 per cent from January to August, but there was a much larger jump in St. John's, N.L., where the average price rose 18.1 per cent to $203,584. There have also been substantial increases in Regina (6.4 per cent), Halifax-Dartmouth (3.5 per cent), Winnipeg (3.5 per cent) and Ottawa (3.3 per cent).
"Prices are on the upswing and inventory levels are tightening, so the push toward home ownership is expected to continue throughout the fall and possibly into early 2010," says Michael Polzler, executive vice-president, Re/Max Ontario-Atlantic Canada.
The picture south of the border isn't as optimistic. A report Thursday showed existing home sales in the United States fell in August after four months of gains.
Still, BMO Capital Markets economist Jennifer Lee suggests there is room for hope, pointing out that inventories continue to drop and, while housing prices continue their downward trend, the cuts are not as deep as they were earlier in the year.
Copyright (c) The Calgary Herald