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www.homehappy.ca |
Did you Know!
Some of the differences between dealing with a Branch vs. dealing with us.
You already know why it makes sense to deal with us instead of a Bank Branch, but in case your friends or family are not, here is a quick list:
1. We can deal with all of the lenders out there, not just one like your Branch.
2. We are in this for the long term...unlike your Bank rep who is looking for their next promotion or transfer, we are not going anywhere.
3. We look at the big picture when planning your mortgage, what you plan and want as well as what the market in the future looks like...Bank reps sell 5 year fixed because they are told to.
4. We will review your mortgage regualrily after you close on it...have you heard from your bank in the past couple of weeks with rates going up?
5. Our goal is to ensure you are happy so you refer your friends and family to us, the Bank just wants to get you closed.
Those are just a few points...there are a lot more. Show your friends and family how much better it is to deal with us! |
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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
April 20, 2010 |
Bank of Canada leaves Prime again, opens door for June raise.
The Bank of Canada left Prime again though it signaled that a change to their policy may happen in June instead of July. The key from their meeting today is not so much if the Prime rate will be going up, but rather, when and how much. Watch this Friday's Stats Canada inflation numbers for a peak...higher than expected and a June increase is a certainty...lower than expected and we may be waiting until July.
Fixed rates remain at the level they were raised to last week, with Bond yields jumping 20 bps on today's Bank of Canada report...hold on to see if this translates into another increase!
Our best variables are now running at Prime - .40 -.50% (1.85%-1.75%!), and 5 year fixed rates are in the 4.60% range (these rates vary by lender).
We expect Prime to go up in June .25%, with another possible increase in July by the same amount leaving it at 2.75% going into the fall.
As always, if you have any questions or concerns, please email or call us at anytime. |
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Impact of Government/CMHC changes starting to be felt.
Qualifying rate
Since the changes came into effect yesterday we have been seeing the impact of the changes brought in by the Government in an effort to control a possible "housing bubble" by making the qualifying rules for mortgages more stringent.
The biggest change involves the rate we use to qualify anyone looking for a variable rate on their mortgage. While this change was supposed to effect only those with less than 20% down payment, many lenders have now decided to use it on all of their mortgages. Anyone who wants to qualify for a variable rate mortgage (i.e. Prime - .40% = 1.85%) must qualify at the posted rate now set by the Bank of Canada, which as of today is 5.85%. Previously there was no uniform rate, but most lenders used their "discounted" 3 year rate, today that would be 3.85%. This change will see many people forced to take a 5 year fixed rate (i.e. today's rate 4.60%) even if they don't want to.
We believe these changes are unfair to many people and could end up causing our Real Estate market to slow more than the Government intended. We don't need the Government of Canada micromanaging mortgages in Canada! |
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Impact of Government/CMHC changes starting to be felt.
Refinances now limited to 90% / Rental Properties minimum of 20% down
Where previously we could refinance someone's home to 95% of the value of their property, that has been reduced to 90%. While at first this does not seem like such a bad thing, it will impact on people and the economy in a few ways. People who are used to using their equity will no longer be able to do so to the same extent, and that probably means less money flowing back into the economy down the road. Also, for those clients that would have used this as a means of investment in rental properties or other investments, they will be limited to the 90% figure and unable to maximize their tax savings to the same degree as previousl y.
By removing all high ratio rental property financing the Government may have done more damage to the housing market than they may realize. While not a huge portion of the market took advantage of this program previously, those that did generally purchased homes with suites in them that they later rented out...those suites will no longer be rented, and that means less reasonably priced rentals in the lower mainland will be reduced. Of course those people that were going to buy a rental proeprty in this manner have also been remoced from the market.
Neither of these changes were profound, but will have negative impacts on the housing market and the overall economy.
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