|
Winners of our first contest of 2010! |
Congratulations to Sean & Mairead who enjoyed their tickets to the Canucks vs. the Chicago Blackhawks in January. Vancouver went on to win the game and they both had a great night. thanks to everyone who participated and watch for our next contest soon!
|
|
Rate hold Program with IOP |
|
At Invis on the Peninsula we strive to look after our client's long term mortgage needs, sometimes that means we have to do things differently than others, and we are ok with that.
One program we have is to setup a rate hold with a lender (other than the one you are currently at, they won't do this) so we can ensure the current fixed rate is held for up to 120 days. You can then see what happens on the market with no obligation to go forward. If rates stay the same or go down, no problem, but if rates go up, you have the peice of mind that comes with having the best rate held for you. If you wish to go ahead and move your mortgage, you can decide to proceed. Call us to arrange this for you, it's a free service, and while it is extra work on our part, we're ok with that.
|
|
About Us
Invis on the Peninsula is a team of Mortgage Professionals led by Michael Anthony Lloyd.
With a combined 75 years plus in lending and one of the highest volume teams in Invis, Canada's largest mortgage brokerage, we have the experience and relationships with lenders to get not only an approval, but the best overall package for you.
Our philosophy will always be based on long term relationship building with our clients...we always offer objective advice, and will be here in the long run | |
| Mortgage Update
February 16, 2010 |
 |
|
Government of Canada makes it harder to get a mortgage.
 Changes to how Canadians can access high ratio mortgages in Canada were announced today by Jim Flaherty, Minister of Finance, going into effect April 19th. While the changes are not dramatic, they will affect many people.
The first change is actually already in place with many lenders, when applying for a high ratio variable rate mortgage all lenders must use the 5 year fixed posted rate (currently 5.40%)to qualify for the mortgage.
The second involves those who own their home but need to refinance their mortgage, that mortgage is now limited to 90% of their home's value, as opposed to the 95% previously available to them.
The third change is that anyone wanting to buy a rental property must have 20% down payment to buy the property...no high ratio mortgages will be allowed on rental properties.
While these changes don't seem that onnerous on the surface, it will make life for some people more difficult. Someone may not qualify for the home they were planning to buy due to the rate, despite them being able to afford it. Others may be stuck in a property that need to use their equity to pay a debt etc. Now their only solution may be to sell that property. For those that were thinking of buying a rental property it will be much harder to save the downpayment, which may in the long run reduce the number of rental properties. That isn't good for purchasers or renters. We don't think these changes were required to "protect" Canadians, and we are unsure how or why the Government made these decisions. Feel free to ask your MP for more information. |
|
|
Michael's Mortgage Minute
The latest information for you
Prime remains at 2.25%, the next meeting for the Bank of Canada is March 2nd and most agree there is little chance of a change at that time. While many still expect the Bank to raise Prime in July, there is still a great deal of doubt as to whether that will happen or not. The US is showing mixed signs still, and until they show a more solid recovery, rates will be up in the air.
Current fixed rates are still very low, with 5 year discounted in the 3.85% range. Variable rate discounting is now hitting the range of 30 bps below Prime (1.95%!).
With low rates likely to continue, a mortgage strategy that is based on a floating rate makes sense for most people, and with new variable rate products priced at Prime or below, the savings are significant. If you are currently locked in we should be reviewing what is best for you.
Our concern is not the current climate, it is the issue of coming due in a high rate cycle, which we expect to occur between 2012-2014. By floating now and locking in later we think it is worth some risk now to avoid those much higher rates down the road.
As always, if in doubt, give us a call to review your mortgage strategy. |
|
Thinking of making a change in 2010?
With BC's Real Estate market running at full steam, this may be the time to make the move you have always wanted...that next step may be closer than it ever will be again.
The best thing to do is give us a call to review what your new mortgage could be, what the budget would look like and if you can live with it. We can have a rate hold setup with a new lender, review what costs you will be looking at for your existing mortgage, selling/closing costs, and even refer you to an expert Realtor.
Having all of the information and a plan is what will help you make a smart, informed decision.
With a strong spring market, now is the time to get your ducks in a row!
|
|
Did You Know?
The secret to bi-weekly payments?
There really isn't a secret to bi-weekly payments and how they can "magically" paydown a mortgage faster. It is simpy putting more money on your mortgage than a monthly payment. By paying every 2nd Friday, you are paying onto your mortgage 26 times per year:
Monthly $1000 x 12 = $12,000
Bi-weekly $500 x 26 = $13,000
So if your budget doesn't work well with bi-weekly, you can get the same affect by making one extra monthly payment per year. On a 25 year amortization that can knock 4 years off your mortgage! | |
