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Dear ,
Are you paying over 4.49% on your current mortgage? While it may have
been a great rate
at the time, you can now refinance and save big on a new 5 year
mortgage. In addition, you can
pay it down much faster, even with a penalty to break the current term.
We'll show you how this is possible. If you've been on the fence about
this, don't
wait anymore. Now is the time as we are seeing historic lows for rates
from 1-5
years. Call us today at (604) 736-1855 or email your current outstanding
balance, rate, amortization schedule and penalty for paying out. Furthermore, consider the security you are
adding by extending your mortgage by another 3 years by refinancing into a new
5 year term at 3.79% or even less. Who knows what the rates will be like in 2 years. One
thing is for certain, they WILL be higher. How much higher is any one's guess
but if our economy reaches a stable to growing level, 5% mortgages and up will
be the norm again.  WOW ...3.59% for 5 years! Refinance your principal residence with us and that is
what you will get Check out our rates page for other options. Be sure to contact us if we have left any of your questions unanswered, or if we can help you in any way.
Sincerely,
Mike Averbach and Justin Blacklock
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Should You Be Refinancing?
We have been inundated with calls and applications for refinancing
and this week we got the newest offer from one of our preferred lenders.
This offer is NOT for everyone ... but if it IS, it could save you thousand of dollars in interest fees, and help you pay off your mortgage faster than previously possible!
 The 3.59%, 5 year fixed term we are offering from MCAP is what we call "No Frills." It's a mortgage offer that
comes about when a group of investors or wholesalers pool millions of dollars
together and invest with a lender to receive a guaranteed return on their
money.
Typically this offer is not as affected by bond yields in the same way institutional
mortgages are; consequently, they are quite a bit below competitive market rates. Mind you, this offer could
change at anytime.
It is important to note that this type of mortgage is far less flexible than your current mortgage and if
you require
pre-payment or lump-sum privileges, you are unable to do this (even if
only 3% of Canadians utilize them!).
If you do not foresee
yourself in your current property for the next 5 years and plan to move
before
then and would like to take the mortgage with you to the new property,
you are
unable to do this since the MCAP mortgage is not portable. It is
also not available for
rental properties or vacation homes, nor is any refinancing allowed
within the 5
year term.
In other words, it is completely
closed and non-pre-payable unless the property is sold to a third party. However, you can increase
your minimum payment by 10% each year as well as choose any payment frequency.
If you are only concerned with the bottom line and building equity, then
THIS IS THE MORTGAGE FOR YOU!
Perhaps you are wondering what is entailed in refinancing.
It is actually quite easy. If you have any equity in your home, you are
eligible.
For example; if your home is worth $500,000.00 and your mortgage is
$450,000.00 --
you have 10% equity and thus are a candidate. The penalty for breaking
your
current term is wrapped into your new mortgage making it slightly higher. The
outstanding balance at the end of the new 5 year term will still be
lower than if you stayed status quo.
We will show you our calculations should you
wish to
pursue this option and can also show you ways to reduce your penalty to
achieve even greater savings. Other costs may be an appraisal if your
mortgage is not
CMHC or Genworth insured. The legal costs to register a new mortgage
can range from $550.00 to $700.00 depending on the lawyer or notary. We
include these costs in your total savings
scenario.
Remember, you won't know for sure unless we do a complete analysis
for you to see if a refinance is worth your while.
Hopefully thousands of dollars worth!
Contact us NOW to find out if you qualify for refinancing, and how much you can save by refinancing at today's lower rates.
Mike Averbach 604-710-2550
Justin Blacklock 604-736-1855
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April Market Update
Here's a market update from
our friends at Macdonald Realty; Simon Clayton, Kristie Marsden, Jason
Low, Sandra Ens, Jason Feinstadt and Jenny Stephanson.
Welcome to the Macdonald Realty Market Update
Each month, we provide you with valuable information to help you in
your decisions related to real estate. It is my intention that armed
with this knowledge, you will be able to make a more informed choice of
whether to buy, sell, or hold.
" There are 3 kinds of lies: Lies, Damned Lies, and Statistics" - Mark Twain:
Over
the past 6 months, the public has been inundated with sensationalist
information in the media that has contributed to our current housing
slowdown. Just like in the run-up in housing prices through the 2000s,
the media has been a large contributor to a market psychology that is
decoupled from market fundamentals. The difference being that the story is now negative.
Below are the 3 most commonly MISUSED STATISTICS in the media:
1) Housing starts drop 70%!
(http://www.vancouversun.com/Business/story.html?id=1369898)
This
shouldn't really matter to buyers or sellers out there. Sure, this is
related to the Real Estate market, but really, we're already overbuilt
and it only makes sense for developers to stop when prices are no
longer escalating.
Remember,
these are CONSTRUCTION figures. Not sales or pricing figures. Unless
you're a construction worker or materials supplier, this type of
information is largely irrelevant to your real estate decision-making
process.
2) Home sales drop 42%!
(http://www.cbc.ca/canada/british-columbia/story/2008/10/02/bc-real-estate-values-vancouver-september.html)
This
kind of information is important for buyers and sellers to know and
also helpful for realtors to use. Gone are the days when a realtor
could put up a sign and sell it $20,000 over list price in 12 hours.
Back then, product was king and realtors spent most of their time
trying to convince sellers to list with them. Now, with more product
available and time-on-market figures increasing, the market is more
balanced.
That said, a drop
in sales has no bearing on price. Remember, these are UNIT SALE
figures, not price figures. As an example, in December, the number of
home sales dropped off in Kelowna; however, the average home sale price
increased.
3) Average House Prices Expected to Drop 11% in 2009!
(http://www.economicnews.ca/cepnews/wire/article/239026)
This
is the most damaging type of media reports that come out. Yes, it is
technically true that Average Canadian Home Prices in 2009 will likely
show an 11% drop from the Average Price in 2008; however, it does not
take into account the fact that the market already turned in the middle
of 2008, with the average price falling drastically since then. Also,
the number of units sold in a given period has a huge effect on how
averages are calculated.
A simple example:
2008 Jan - June > 100 Units Sell at $200,000 Average
2008 July - Dec > 50 Units Sell at $170,000 Average
What is the Average for 2008? $190,000
Of
course, at the beginning of the year in January 2009, prices are
ALREADY at the December 2008 figure of $170,000, or 11% BELOW the 2008
Average of $190,000. In this example, the slowdown began in the middle
of 2008.
So even though the
average price in 2009 are expected to be 11% below the average price in
2008, the January price already reflects this difference and a further
drop in prices is not expected.
Using these predictive models, we can see how average prices over the year can really skew the figures.
Average Home Prices:See the Average House Price comparison chart for Greater Vancouver, Victoria, Kelowna and Edmonton. Visit our BLOG for more information and advice on dealing with Vancouver's current housing marketplace. And for links to our friends at MacDonald Realty.
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Averbach Mortgages
604-710-2550
We save you time. We save you money. We get you the you the best mortgage terms at the best interest rates possible.
If you are:
- purchasing your first home
- refinancing
- renewing an existing mortgage
- investing in real estate
- consolidating your debts
- experiencing current or past credit issues
We have the solutions that work for you.
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Mike Averbach
Averbach Mortgages |
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