Term         Best Rate   

1 year Fixed      2.74%

2 year Fixed      2.69% 

Canadian Mortgage Market Update June 2012 -Rates are falling again

   

No movement on the overnight rate by the Bank of Canada in their June meeting. Next meeting is July 17th. More instability in Europe has moved the Bank to a wait and see approach for future increases.    

The continued turmoil in Europe has allowed the spread in fixed mortgage rates to increase. The rate competition has heated up and we're getting rates close the rate sale levels earlier this spring.   

Plus, some comments on proposed changes by OSFI, the discussion of re-qualifying at maturity for your mortgage and the reduction of maximum HELOC limits across Canada 

If you've locked in your rate at these 'bottom of the barrel' levels, don't sit there and be content. Plan ahead as rates WILL increase in the future. Here's a video outlining a mortgage strategy everyone should be following. .

     Click here: There's Money in Your Mortgage

You only need to turn on the television - or look at a magazine rack - to see that Canadian homeowners are the renovation generation. We fill the aisles of home improvement stores, or go over our ideas in great detail with our reno contractors. 

Do you want to increase the comfort and enjoyment of your home because you're planning to be there for the foreseeable future? If your dream home is one renovation away, we've got a smart-money tip:  

Reno & Roll.

If you've owned your home for a few years, chances are you've been building up some nice equity. And with mortgage rates hovering around historic lows, this is a great time to look at rolling the cost of your renovation into your mortgage. In fact, you might find enough interest savings in your new mortgage to help knock down the overall cost.

Let compare two financing strategies: a Line of Credit or Reno & Roll, assuming current mortgage is $150,000:

Line of Credit - finance using a line of credit, which is an added expense to your current monthly mortgage payment:

                                                  Monthly Payments

Renovation Cost         LOC+             Mortgage*             Total

$25,000                       $   500             $749                $1,249

$50,000                       $1,000             $749                $1,749

$75,000                       $1,500             $749                $2,249

Reno & Roll - roll the cost of your renovation into your mortgage and have one easy and much lower payment:

Renovation Cost            New Mortgage                    Monthly Payment*

$25,000                           $175,000                             $ 874

$50,000                            $200,000                            $ 999

$75,000                            $225,000                            $1,007

Now close your eyes and imagine enjoying the renovation you're dreaming of at your house. And using your prepayment options, imagine paying it off faster than you dreamed possible.

That's a great Reno & Roll. Give us a call, and we'll build a little R&R just for you.

*Assumes 3.5% 5-year, 25 yr am. OAC, subject to change. +2% monthly line of credit payment, monthly balance will vary depending on payments and usage. For illustration purposes only.

I have recently introduced the Canadian Home Buyers Academy. If you are considering purchasing a home, this is simply your best resource for all the information you need to make the home buying process simple and straight forward.  

Plus, through the process, as a Member of the Canadian Home Buyer's Academy you will be eligible to receive up to $2000 Cash Back towards the purchase of your new home.  

What's the catch? There isn't one! You still get the very best mortgage I can arrange for you, and receive the cash back as an added incentive.  

This offer is available to you, your friends and your family! For more details, click on the following link..........  

 Canadian Home Buyers Academy