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Welcome to My Mortgage Broker
 
Greetings!

Happy New Year and all the best in 2010!  As your mortgage broker I will do more than simply wish you well - I will help you make this year a good one. Included in this first issue of 2010 are some helpful strategies - that you won't likely hear about from your banker - but I am happy to share. 

Feel free to email or call me with any questions and PLEASE PASS ON THIS INFORMATION to anyone you know that could benefit - sharing is a good thing.
The No-Penalty Re-Finance
Lock in a great low rate early - with low or no penalty

We all know rates will go up again and the Prime lending rate could easily reach 6% (like in 2007) and fixed rates over 7%.

So, people have been asking me to help them refinance their mortgage - but have trouble making the move if there is an early renewal penalty to pay to their current bank - even if the new payments are considerably lower. The decision usually comes when it is very clear that - even with a penalty - the cost savings over a 5-year term makes sense.  

Here are two must-read strategies that you can take advantage of to refinance your mortgage into a great low rate (fixed or variable) and pay a low or no penalty - even if your mortgage isn't up for renewal for a year or more.

By applying to refinance your mortgage today - you reduce the impact of higher rates when your mortgage is up for renewal later this year or even in 2011.  We can hold a current low fixed rate below 4% for 120 days.  During that time if rates rise - your penalty at the current lender will drop.  Penalties are based on time and the spread in interest rates - so time is your friend.  Your penalty drops and you get a great rate for the new term of your mortgage - win -win!

If you want to reduce your penalty you could consider renewing into a slightly higher fixed rate or a variable rate at P+.1% (2.35%) - this is not the lowest variable rate available but the slightly higher rate allows you to get a cash back to offset your penalty and/or legal fees.  If you choose the variable rate option, you can either stay in that variable product or lock into a fixed rate (the fixed rate will be 10-20 basis points higher than our best rate - but still around 4%).  For those people with larger mortgages this can be a great way to save on the penalty and access our very attractive rates.

These are only two options - for more details on these strategies or others - or - to run some numbers for your specific scenario - please give me a call or email anytime.
Best Rates
RESIDENTIAL MORTGAGE RATES
As of Tuesday January 5, 2010 

(NOTE:  Fixed rates will rise.  Some lenders are already starting to shift upwards - and others will follow in the coming weeks.)
 
TERM
INTEREST RATE
  1 year   2.25%

  2 year   2.90%

  3 year   3.45%

  4 year   3.79%

  5 year   3.79%

  7 year   4.45%

10 year    5.30%

Open Variable rate    3.05% (P+.8)
Closed 5-year variable rate  2.00% (P-.25)
Home Equity Line of Credit 3.25% (P+1)
Prime (P) is currently at 2.25%.
What will happen to rates in 2010?
What you need to know to protect yourself from rate hikes!

Both fixed and variable rate products will see an increase in 2010.  Due to pressure on the bond market fixed rates by some lenders are increasing this week and the rest will follow.  The Bank of Canada have already indicated they will increase the Overnight Lending rate starting by mid 2010 - this increase will impact the Prime lending rate offered by banks which effects variable rates and lines of credit. 

So, if you have a $100,000 mortgage paying $595 per month (at 5.25% fixed ) and now you can pay $517 per month (at 3.79% fixed) you will save $7,000 in interest over the 5 year term (that equals over 13 months of payments - now that is very cool!)

If you have a line of credit with a sizeable balance you may want to consider rolling it into a new low rate mortgage to offset increase in costs as the prime rate rises. 

Stay tuned for rate updates or check my blog. 

Pauline's Pick -
Canadian Real Estate Stats
www.creastats.crea.ca/natl/index.htm
                   Volume 3
Issue:: 1
    January 2010
Homeowner Tip

Did you know that effective January 1st each year until March 15 you can access the BC Assessment website to check home sales figures and see your property assessment?

Simply visit www.bcassessment.ca
locate your city on the map, enter the address and search properties on the same street.  If you disagree with your property assessment and can show proof from your research that your assessment should change, you can request a change on the phone or by fax.  You could save hundreds of dollars in property taxes if your property value should be lower than last year.
 
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Homeowner Tip

For those of you that started or completed any home renovations in 2009 - remember to keep all your receipts to apply for the homeowners renovation grant on your 2009 tax return.

The HRTC applies to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010.

The 15-per-cent credit may be claimed on the portion of eligible expenditures exceeding $1,000 but not more than $10,000, and will provide up to $1,350 in tax relief.

www.budget.gc.ca/2009



TheMortgageCenterLogoPauline Tonkin
   The Mortgage Centre - Elder Mortgage
101 - 566 Lougheed Hwy, Coquitlam BC
Phone: 604-813-8402