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| October 2012 | Vol 4, Issue 10
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| Greetings! |
Welcome to the October edition of Monthly Mortgage Matters!
And finally, Fall shows it's face in the Fraser Valley. Did you see all the people scrambling to get the patio furniture away?
Nothing but good news to report this month! Interest rates remain low, with more lenders offering short term specials on several different terms. Keep an eye on the 10 year terms!
And are you wondering why your IRD penalty is really high? I explain in this month's video, with more detail in the article below - When Mortgages Attack!
There have been several updates to my Facebook Business Page. This is where I'm providing updates and industry news in between the newsletters. Check out the new look, and I would appreciate some more 'LIKES'! Click the picture below to visit my business page.
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.
Mortgage Rob
Follow Mortgage Rob on the these sites.
"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 2.94%
10 Year Fixed 3.89%
VRM Prime - .35% (2.65%)
*Some conditions may apply |
| Did you Know? |
That many Canadians will spend more time shopping for a TV, than they spend shopping for a mortgage or investment. That can be okay, provided you have a mortgage professional looking out for your best interest.
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| This Month's Mortgage Tip |
 | | Canadian Mortgage Market Update Oct 2012 - Rate competition heats up & clarification on IRD penalties |
Only positive news for interest rates this month. There are more lenders competing for your 5 year business, with a rate of 2.94% available through one mortgage company. Plus, more lenders offering great 10 year rates, among other shorter term specials.
Have you wondered why your Interest Rate Differential penalty is so high? Different lenders calculate the penalties different ways. It's best to know the differences going in, rather than finding out the hard way. There is a big difference between how the banks and mortgage lenders calculate penalties. More detail in the video, and the article below.
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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When Mortgages Attack!
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 Further to the information in this month's video on mortgage penalties, I thought I would share a blog post I did earlier this month. I had read a great article in the Globe and Mail that helped to explain the difference between penalty calculations at different lenders.
If a lender uses a posted rate, and offers a discount to the consumer, then that same discount applies when calculating the interest penalty. On a 5 year term today, many banks are offering better than a 2% discount. That's great up front, but it will come back to bite at some point.
Mono-line mortgage lenders typically do not have 'posted' rates, and therefore the penalties will be significantly lower in many circumstances. There may be an additional admin fee, but with the lower IRD calculation, the overall penalty remains much lower.
The article goes on to offer 10 questions you should be asking your lender before signing on the dotted line. While some lenders will waive or reduce penalties, a large IRD will reduce your ability to shop your mortgage in the open market. Be cautious not to get locked in with any lender.
To check out the article and find out the other questions you should be asking about penalties, visit my blog by clicking below:
Mortgage News From Mortgage Rob - When Mortgages Attack!
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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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