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| September 2012 | Vol 4, Issue 9
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| Greetings! |
Welcome to the September edition of Monthly Mortgage Matters!
Back to school and perfect time for summer to kick in! Never fails, does it? We get some of our best weather of the year as soon as the kids get back to school.
And with the kids getting back to school, it means the summer vacations are over, and some of us will be thinking about finances again. Good news is that the government and the markets are helping out, and your mortgage rate options are still extremely good!
And with this being the middle of September, the national banks fiscal year end is about 6 weeks away. That means the second round of mortgage changes legislated early this year are starting to take effect. I've posted an article below to update you on the changes.
I had some great response last month to new buyer taking advantage of the $10,000 available from the BC Government for First Time Home Buyers. If you need details, give me a call.
Are you looking to purchase a new home? How would you like up to $2000 CASH BACK towards your purchase. Check out the Canadian Home Buyers Academy section below.
As always, I'd be happy to review your mortgage options with you or any of your friends, family and colleagues.
"The greatest complement I can receive is a referral to friends and family."
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| Rate Watch | |
Term Best Rate
1 year Fixed 2.49%
2 year Fixed 2.59%
3 year Fixed 2.69%
5 year Fixed 3.09%
10 Year Fixed 3.89%
VRM Prime - .3%(2.7%)
*Some conditions may apply |
| Did you Know? |
That by treating your mortgage like you do your investment accounts, can save you thousands of dollars in interest. Further, you can be mortgage free in a fraction of the time.
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| This Month's Mortgage Tip |
 | | Canadian Mortgage Market Update Sept 2012 - Rate stable, Update on Mortgage Changes |
This month, I've touched on two topics in the video.
First, rates remain stable, some adjustments to different terms but for the most part, the rates have been the same for about 6 months now. Some VRM competition starting to come to market.
Second, we are now starting to see some policy changes with respect to the OSFI changes legislated earlier this year. More details in the video and in the article below.
Rates for 10 year terms still offer a great option for clients looking for long term security.
Do you know that it's possible to create a longer term plan for your mortgage, much like your financial planner will do for your investments. View the video below, and contact me for a planning session.
Click here: There's Money in Your Mortgage
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Round Two of Mortgage Changes
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Earlier this year, the federal government announces a number of changes to the mortgage lending guidelines in Canada in order to slow down our housing market in Canada and attempt to control the amount of borrowing amongst Canadian households.
The first round of changes took effect this spring, with the 2 most significant changes being the reduction of the amortization on high ratio mortgages to 25 years, and limiting the limit CMHC will insure refinanced mortgages to 80% of the property value. These changes were fairly drastic and we will be able to measure the effect in the upcoming years.
The second set of mortgage rule changes were requiring the banks to comply by their fiscal year end, which is October 31st, 2012. These changes include the following:
- Home Equity Lines of Credit - limited to 65% of the property value
- Qualifying Rates - for terms less than 5 years and VRM's, qualifying rate will be the deemed benchmark rate by the B of C.
- Stated Income - All self employed borrowers must provide "reasonable" income to qualify for financing
- Down Payments - Cash back is not an eligible source for down payment, effectively eliminating 100% financing.
MY OBSERVATION.......... While the changes will definitely effect the lender landscape going forward, it definitely does not mean that there are not mortgage options for many of you. As the changes are coming into effect, we are already seeing new lenders entering new markets. While the banks may not be able to offer stated income financing, other lenders will fill that space. It may not be with fully discounted interest rates, but definitely with some good alternatives.
For the full post and further comments on the changes, visit my blog by clicking below:
Mortgage News From Mortgage Rob
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Up to $2000 Cash Back On Your Next Purchase
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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
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If you've thought about getting into the real estate market, or getting a second opinion on your existing mortgage, now is a perfect time to find out your options. Housing is as affordable as it has been in years, and there are lots of opportunities to buy that new dream home, or restructure some financing and make drastic changes to your monthly budget. Don't hesitate, take action today !
Sincerely,
Rob Macdonald, AMPMortgage Expert
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