Banking turmoil in the US.
US Government bailing out US Banks with $700b!
Surrey, BC - Sept 23, 2008 - The US continues to struggle with the fallout of their lending crisis. Their government is now taking over to try to keep things calm, but markets are spooked. Although not quite panic, the turmoil this is causing is starting to impact Canada in some ways.
While our rates remain low and should do so for the next 12 - 18 months at a minimum, all of this turmoil is making it more difficult for Canadian lenders to sell mortgages...as well, many have already hit their year end targets, so they are losing their desire to grab market share and instead seem comfortable to increase profits. Watch for some likely increases coming in fixed rates (Current 5 year is around 5.25%, may rise .25% ) and reduced discounting on variable rates (many are discounting less than .50% off of Prime for closed variables). All of this will likely change by the end of the year when the new goals for the lenders are out and their desire for increased market share makes them compete more.
If you are in a variable, keep on floating, if you are in a fixed, it may make sense to change but careful review is required to discover your break even point. |
Time running out on 0% down & 40 year amortizations on high ratio insured Mortgages.
The Government of Canada made dramatic changes to High Ratio Insuranced mortgages which will take effect October 15th this year. Most lenders have now followed the upcoming rules early and cancelled 0% down and 40 year amortizations on new products, but there are a few left.
If you or someone you know wanted to buy a new home with 0% down or have a 40 year amortization to keep your cash flow at the lowest possible, this window is closing soon, so you need to act now. Call us to discuss!
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| Did you know?
We offer secured lines of credit through a number of lenders? We can help you access the equity you have built up with a Home Equity Line of Credit at anytime. |
