Prime drops .25% to 2.25%!
Surrey, BC - Apr. 21, 2009 - The Bank of Canada dropped their key lending rate by .25% today, with lenders following with a drop in their Prime rates to 2.25%!. The Bank of Canada also did something different by advising us they plan to leave Prime where it is now until at least June 2010, basically admitting they expect a lextremely low rate environment for at a year. 5 year discounted fixed rates are following along, with most in the 3.85% range and some with "Quick Close" rules in the 3.69% range.
For most clients I am still recommending they take a variable rate mortgage at this time (currently the best are at 3.00%), then float for the next year or so and look at locking it in to a fixed rate then, before the US turns around and rates start to go up.
As always, having a Mortgage Strategy in place is always the best plan!
Sending your clients to Invis on the Peninsula will ensure they get the best strategy possible and makes you look good!
|
Lending market update
With the change in credit markets we have seen a number of drastic changes over the last 6 months or so. This can have a dramatic impact on your clients, with changes to the major mortgage insurers having the greatest impact, such as Genworth & CMHC. Many of their programs are either gone or changed completely. What they will allow for debt service ratios, income verification, self employment verification and down payments are all being scrutinized more than ever.
Lenders themselves are all adjusting their rules as well, so it sometimes seems the changes to their policies are daily as to what is allowed and what is not.
If your client has been told by their Bank that they are "preapproved" it may not mean much more than the Bank would like to work with them, but will check everything later. We review our preapprovals on a per deal basis, and on those that are on the edge or in a gray area, we submit everything ahead of time to ensure you don't get suprised come subject removal time.
Knowing this side of the market is a key aspect of why dealing with us increases your chances of having your deal go through.
|
Useful website for Your clients
Apart from our own website www.lloydonline.com (which is currently being reno'd, watch for changes soon!) here are some helpful links to provide to your clients who are looking for more information on mortgages.
If you need more specific information, please let us know! |
