Considering the current economic climate in North America and around the world, potential home buyers and current home owners need the advice and expertise of a mortgage broker now more than ever!  

 

Our clients are telling us they are concerned about the recent financial disaster news of the U.S. that is now spreading to  Canada and across the globe.

According to the Globe and Mail there are three factors that are "profoundly affecting" Canada's economy:

 

· The global financial crisis has intensified.
· The global economy is heading into a recession.
· Commodity prices have declined sharply.

 

This will affect Canada's economy because of declining exports.

Many of our clients are shifting their focus from future plans to what the financial crisis means for them today! We are getting phone calls every day from concerned home owners and potential buyers asking us what steps they should take to protect themselves and the investment in their homes.

 

· Are you wondering if you should refinance your mortgage?

 

· Do you currently have a variable rate mortgage and aren't sure if you should lock in?

 

· Are you considering a home  purchase in the near future and plan to take out a fixed rate mortgage?

 

· What's the best type of mortgage to have right now?

 

If you are a home owner with a variable rate mortgage you can expect to see a huge savings over the next year.

 

Our best advice for those with a current variable rate mortgage: stay the course! Rates are low and will be for some time to come! Even if you decide to lock in to a fixed rate later on, it will be well worth waiting because you'll be saving so much in the next year or so!

 

You must make sure that your mortgage has a written option to convert to your financial institutions BEST fixed rate mortgage when you decide to take that step. Most banks DO NOT have that written clause, leaving you at a great disadvantage when you decide to convert. (See our article on converting from variable to fixed rate mortgages ... BUYER BEWARE)

 

A home can be a great hedge against inflation and economic uncertainty.

 

Call the Averbach Team if you have any questions or concerns about how the current economic situation may impact your home mortgage. You can rely on the Averbach Mortgage Team to find the right mortgage program for your individual situation. Mike, Lisa, Justin, James and Tae are poised to help you evaluate all of the features and benefits of available mortgages and to help ensure you are in the best position to protect the largest investment you'll ever make.

 

 

PS  Major Canadian banks have now cut their prime rate
bringing it to 4.0%.

 

PPS   What all the gloom and doom analysts have failed to point out is that Vancouver is still growing. Just look around at all the building cranes and the frantic pace of business as we look forward to the 2010 Olympics. Many businesses cannot find employees, and many businesses continue to grow and thrive in spite of what is happening in the rest of the world.