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What is going on with fixed rates?
In my November 2010 issue I reviewed why fixed rates rise and fall. If you didn't keep that email all newsletters are archived on my website or you can email me for a copy.
As I indicated the fixed rates are tied to the bond prices and yield. At that time I mentioned we would have to watch the behavior of investors in the stock market and how they would allocate their purchases of bonds in the coming months. This may not seem relevant to you - but the bond market directly effects the price of fixed rates and so it does impact your cost of borrowing.
Over the past few weeks we have seen the bond yield drop which could mean a drop in fixed interest rates. Of course, the banks like to make money and they can keep rates at the same level and increase their profits. So, what does this mean for you?
As I mentioned in the January issue I am advising my clients to make an appointment to review their personal situation with their financial planner, accountant and mortgage broker as soon as possible. Once you have all the cards on the table you can see the big picture and make a plan that you can work with to offset any risks and take advantage of opportunities.
If you want to buy within the next 3-6 months you can get a rate hold and if rates drop you can get the lower rate.
If you are refinancing your mortgage then the lower rates are attractive but be careful on the potential changes in penalties. As always - before you do anything - do your homework and talk with your broker.
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Managing Credit
Tips on how to close out that high interest credit card without effecting your credit score in a negative way
Courtesy of the Globe and Mail
I work with clients that need to consolidate high debt to lower their monthly payments. I am very careful to guide my clients through the process along with the the pros and cons. One of the main questions is around closing out the credit cards.
Closing a credit card can help improve your credit score by freeing up your available credit or getting out of a high interest rate agreement.
Keep these tips in mind when closing a credit to make sure you get through the process without additional charges or other surprises.
http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/seven-tips-for-closing-a-credit-card/article1873151/
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Free Real Estate Workshop - Feb 9th
Presented by Pauline Tonkin
To sign up for our next real estate workshop - visit Meetup.com and search for the Tricities Real Estate Workshop - Feb 9,2011.
Location: Poirier Sports and Leisure Complex 633 Poirier St, Coquitlam - Room 2 - 7pm. Space is limited so sign up today and bring a friend - they will thank you.
Presenters: David Perkins, Financial Planner, Pauline Tonkin, Mortgage Specialist and Esther Chung, Lawyer.
To RSVP - call Pauline at 604 813 8402 or email at pauline@mybcmortgage.ca or sign up on Meetup.com.
Note: I will talk about the mortgage rule changes taking effect March 18,2011.
Realtors are welcome.
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