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Issue No. 19                "Representing Your Best Interest!!" December 24, 2009
Merry Christmas to all!!! 
 Fixed Rates going up - Variable Rates going down!

Bond yields have gone from 2.44% to 1.21% in 4 weeks leaving us well below the banks comfort zone of 1.60-1.70%...

  
As predicted, 2010 will be the year of the rate increase! and it looks like it is going to start right away in the new year! Bond spreads have been deteriorating quickly of late, and only the Christmas season will save us from a rate hike! This will be the last of 3.99% or better we will see for awhile, a long while in my books! Get pre-approved now!
 
 On a positive note, Variable Closed products are now available at PRIME -.20%!!! as discounting of those prepare us for that increase in the near future!
 
 
**Please note, we only advertise full service rates, not quick close products as we do not want to mislead those relying on our rate sheets.
 
 
Call us today!! 
 
 
Rod Minnes
Managing Broker

Rates as of Dec 24, 2009
 
  
Fixed Rate Mortgages    
     
6 month convertible            4.60%
1 year open                           6.50%
1 year closed                        2.35%
2 year closed                        2.95%
3 year closed                        3.50%
4 year closed                        3.99%
5 year closed                        3.89% 
       

Variable Rate Mortgages    
5 year closed - Prime* - .20%  ****
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
 

Loonie hits three-week high on outlook for rate hike

Daniel Kruger and Ye Xie, Bloomberg  Published: Wednesday, December 23, 2009

Canada's dollar climbed to the strongest level in almost three weeks amid speculation an accelerating economic recovery will prompt the central bank to raise interest rates sooner than it expected.

The currency strengthened for a fourth straight day versus its U.S. counterpart after Finance Minister Jim Flaherty said in an interview that China may be poised to buy Canadian dollars as it seeks to shield its reserves against the U.S. dollar's decline. Crude oil, Canada's biggest export, surged.

"Investors do like the Canadian dollar," said Amelia Bourdeau, a currency strategist in Stamford, Conn., at UBS AG. "The market continues to think the Bank of Canada will hike before the Fed. The fiscal position of Canada is in a much better shape than many other countries."

The Canadian dollar appreciated 0.9% to C$1.0478 per U.S. dollar at 1:06 p.m. in Toronto, from C$1.0574 Tuesday. It touched C$1.0471, the strongest level since Dec. 4. One Canadian dollar buys 95.43 U.S. cents.

The loonie briefly pared gains after a Statistics Canada report showed the nation's gross domestic product grew 0.2% in October, less than the 0.3% forecast in a Bloomberg News survey of economists, and a U.S. report showed purchases of new American homes unexpectedly fell last month.

Canada's currency gained versus 12 of its 16 most-traded counterparts tracked by Bloomberg today and was the top performer this month. The loonie climbed 16% this year.

"The trend has definitely been very favorable for the Canadian dollar over the last few days," said C.J. Gavsie, Toronto-based managing director for foreign-exchange trading at Bank of Montreal, Canada's fourth-largest lender. "In comparison to the other majors, Canadian dollars held in incredibly well against the dollar."

Traders are raising bets that the nation's central bank will increase interest rates on signs of an economic revival. The yield on the overnight index swap due in nine months, based on predictions for the Bank of Canada's rate at that time, was 0.4%, almost the highest level in two months, from 0.38% on Dec. 18 and 0.32% at the end of November.

Central-bank policy makers next meet to determine interest rates on Jan. 19. They held the benchmark rate steady at a record low 0.25% at their last meeting on Dec. 8 and reiterated a pledge to leave it there though June 2010, barring a change in the inflation outlook.

The Federal Reserve repeated Dec. 16 that it will keep U.S. interest rates "exceptionally low" for an "extended period."

Safer Investment

Finance Minister Flaherty said Canada has the lowest debt levels among the Group of Seven nations, making its currency a relatively safer investment.

"It does not surprise me that China and Russia would take greater positions in the Canadian dollar than they have previously," Mr. Flaherty said during a Bloomberg interview Tuesday in his office in Ottawa. "I would expect countries looking around the world to invest in market currencies that are reliable."

Year End Tidbits ????

As we approach the countdown to move to 2010, which I think will prove a very interesting year in the Real Estate Market, I leave you with some short "get you thinking" type of info articles! I left my Prediction in the bottom of this, just to remind all of my thoughts, and so I can go forward into 2010 without having anybody say "why didn't you tell me"!! :)
 

Why Global West Mortgage does not do Sub-Prime Mortgages

I have run across many situations in the many years I have been in the business and often been asked why we don't offer borrowers with beat up credit, unverifiable income, loads of debt, or other financial difficulties a mortgage.

 After all, mortgage brokers can make a lot of money charging high fees and/or earning big commissions on sub-prime mortgages, because they're usually offering them to people who are desperate. Justifying their actions is easy, because the broker is really that person's only hope.

I don't do it. I never have. I can't justify it. and a year like 2009 where we saw many private lenders disappear, only made it clearer that  type of business is not to the benefit of anybody! There is a time and place for PRIVATE money, and Global West Mortgage is actively working on a Mortgage Investment Corp to handle these situations, draw financing, interim loans, and the like!  However, taking advantage of people who need help is never justified and I refuse to do it - even when I walk away from handsome paydays. I have told many people to "do this and that" and come back to see me in a year!  If they decide to go ahead and pursue another avenue to get a deal done, so be it! I will not be the broker of record when a couple of months down the road they have buyers regrets! and because I set them up with a 10% mortgage, I will always be remembered for the wrong things!

I'm very proud to say that I am not getting calls from orphaned clients saying, "My lender is out of business so I can't renew my mortgage, and nobody else will offer me a loan! I can't sell my house because the value is not there and I don't qualify anywhere else! I'm going to lose my home!"

My motto "don't let one deal staring you in the face, cover your eyes to a world of potential.  By doing what is in the best interests of the clients, one will always grow that potential income in the long run".

 

Mortgage Testimonials

Over the past year, Global West Mortgage has been privileged to work with some great new Realtors and Clients, many who are kind enough to send us a thank you email or card to express their gratitude for the service we provide. These are truly cherished and give us a lasting sense of accomplishment, long after the commission cheques have arrived.

This business can eat you up and spit you out at times because it's very competitive, very intense, very time-sensitive, it can be people's income,  and we're dealing with large sums of other people's money - not to mention their homes - on a regular basis.

The testimonials we receive are the greatest reward we can hope for. When we started Global West Mortgage, our goal was to receive as many testimonials as possible, and let the growth of our company be dependent on the happiness of our clients, not the bank account! A sincere thanks to all of our customers for your business and your loyalty, we look forward to working with you in 2010.

 Enjoy Life - Every Day
 
Enjoy the holiday season with your family and friends, and be thankful for all that we have!  Live life to the fullest, and look at the world outside of your comfort zone, amazing things await you!
 
Merry Christmas to all and a Happy New Year!!
 
 
PREDICTION - We will see rates drop to below 4.00% again here almost immediately based on the spreads, and it is my prediction that this will be the last time we see these rates! By early new year there will hints that rates are on the move up, and by the end of 2010 we will see a 1% increase in fixed and variable rates! In the meantime housing prices seem destined to climb by at least 10% as well nationally! The combination of these factors will mean affordability right now will not be matched in the years coming! Inflation will the target word for 2010-2011 and on!

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