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Issue No. 14                   "Representing Your Best Interest!!" October  15, 2009
5 Year Fixed Rate Increases - but Global West still has 3.84%!!

Lenders Raise 5 year Fixed rates by as much as .35%!

 Well, as the markets were indicating in the bond yields, rates went up significantly today with most lenders. However, we do have a couple of stragglers hanging in there, probably, until the weekend, I still have 3.84% available. Most lenders are now offering 4.34% for 5 year money!  ACT NOW, not coming back this way for awhile, if ever!!!
 
Call us today!! 
 
 
Rod Minnes
Managing Broker

Rates as of Oct 15, 2009
 
  
Fixed Rate Mortgages    
     
6 month convertible            4.60%
1 year open                           6.55%
1 year closed                        2.55%
2 year closed                        3.30%
3 year closed                        3.70%
4 year closed                        4.09%
5 year closed                        3.84% 
       

Variable Rate Mortgages    
5 year closed - Prime* +.00%  ****
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%
 
 
Sincerely,
 
Rod Minnes
Global West Mortgages
 
TD Bank, Scotiabank latest to raise mortgage rates!!!
Financial Post  Published: Tuesday, October 13, 2009
 
Several Canadian banks are increasing the cost of taking out a mortgage with them.
On Tuesday, TD Bank said it is raising rates on fixed mortgages, with the five-year posted rate increasing 0.29 of a percentage point to 5.84%.
Rates will also rise on two, three, and four-year fixed-rate mortgages. The two-year will go up 0.3 of a point to 4.2%, the three-year will increase 0.3 of a point to 4.75%, and the four-year will rise 0.35 of a point to 5.29%.
The changes come into effect Wednesday.
Later Tuesday, Scotiabank made an announcement about raising a number of its key interest rates. Six-month mortgages were going up 0.1 of a point -- flexible closed to 4.65%, open to 6.5%. Three-year closed rates are up 0.3 of a point to 4.75%, four-year closed rates are up 0.35 of a point to 5.3%, five-year closed rates are up 0.35 of a point to 5.84%, seven-year close rates are up 0.1 of a point to 6.6%, and 10-year closed rates are up 0.1 of a point to 6.95%.
These changes were also to take effect Wednesday.
Such moves follows an announcement Friday from Royal Bank of Canada that it was making a series of increases to its mortgage rates, ranging from 0.1 to 0.35 of a percentage point -- effective the following day. 
 
Rod's Musings!!!
 
Well it had to happen, the markets rebounding above the 10,000 mark, both the DOW and a long time ago, the TSE! Oil up, gold up, the real estate market making headway both here and south of the border! and bond yields reducing the banks spreads on lending money!
 
I do wonder how we will adapt to the new rates on the horizon, having been spoiled with Variable rates in the 2.25% range, lower for those who got in over a year ago, when discounting was prevalent on all floating products! Fixed rates that start with a 3 have made all components of the market respond to a major crisis relatively quickly! The news has all gone from negative doomsday writing to positive indicative signs everywhere!
 
Amongst all of this, rates will rise as we go along, careful not to pull us back into the recession again, but nonetheless they will rise!
 
If one is allowed to opinion, was not the latest major financial set back a great eye opener to all of those in business today and all of those who have the ability to move forward. I think it made all of us stronger business people! After dealing with this crisis, I have to believe that rising rates will only be a minor distraction to a stronger workforce and economy!
 
I look forward to working with the business people who made the recovery happen, and survived!
 
 
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