BEST RATES ARE GOING UP,  

BUT  DON'T PANIC! 

The press tends to sensationalize any changes in mortgage rates.      

Over the past few days a number of financial institutions have raised their FIXED interest rates.   

FIXED rate pricing follows the bond market; therefore, they often fluctuate.  Our current rates are similar to the rates of February 2011, so don't panic.

The Canadian government plays a central role in the FIXED mortgage rate market, specifically the price of government bonds and these interest rates are influenced by the bond yield (the percentage return an investor will receive). 

Bonds are typically considered safer investments than stocks, especially Government bonds, and when the stock market is booming investors most likely make a higher return on investment in equities, which means there is a lower demand for bonds.  Bonds then decline in value and their yields increase. On the other hand, when the Canadian economy becomes less stable and stocks do not look as enticing, the demand for bonds increases and their yields decrease.

Remember VARIABLE interest rates are linked to the Bank's Prime lending rate.  For example, you may have a mortgage with a rate of Prime - 0.6%.  Prime is now 3% so the current interest rate on your mortgage is 2.4%.

Financial institutions base their Prime interest rate on Bank of Canada's overnight lending rate. BOC meets eight times yearly to establish this rate and there are many factors affecting their decision.  Some of the factors they consider are inflation and the value of the Canadian dollar.

Click here for BOC meeting dates.  

Article by Benjamin Tal

Deputy Chief Economist, CIBC World Markets

Canada's fourth quarter growth rate of 3.3% hints of a robust pace to start 2011.

Bottom line improvements generally trigger an avveleration in employment growth, so we can expect another 30,000 jobs have been added in February.

While we expect grwoth to slow after such a robust first quarter, our expectation is that the bank of Canada will begin raising interest rates by July.

Read entire article 

Mortgage and Real Estate Updates

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Why pay off your landlord's mortgage when you could be paying off your own

Join Realtor Patricia Killshaw and I for an evening of information.

I know buying your first home can be a confusing process, but don't be intimidated!  

I will decipher mortgage terms, make the borrowing process uncomplicated and I will explain the entire undertaking from pre-qualification to possession. You will learn about down payment options, programs for first time home buyers, rental suite income, closing costs and what is the role of a mortgage consultant in the home buying process.

Buying a home should be fun, not stressful. Patricia recognizes the challenges first time home buyers face & knows how to turn it into a positive experience. You will be walked through the buying process and shown how to avoid common first time buyer mistakes.

April 13, 2011

Westshore Rec Centre

7-9pm 

To register click here   

Reference # 64092   

Did you know I am a movie Producer?

Last year I was listening to Jian Ghomeshi on CBC's Q and heard a terrific interview with Casey Walker.  Casey was looking for financing for a his movie and I loved his innovation: he decided to sell frames of his film to the public for $10 each - less than the price of seeing a movie.    

This is how My Million Dollar Movie was created and this is how I became an assistant film producer. 

Filming of the Canadian movie A Little Bit Zombie is scheduled to begin in June.

There are still a small number of frames left so check out Casey's site.