Saturday, October 20, 2007

Canadian Mortgage Rate Update Effective October 20, 2007

Canadian Mortgage Rate Update October 20, 2007

The Lenders increased their 5 year fixed mortgage rate this week and all other rates remain the same. The Bank of Canada announced this month that they would leave the prime rate unchanged. Below are fully discounted rates available to you.

The Bank Prime Rate is currently 6.25%.

Best Fixed Mortgage Rates:

1 Year Fixed 5.60%
2 Year Fixed 5,65%
3 Year Fixed 5.70%
4 Year Fixed 5.95%
5 Year Fixed 5.99%
7 Year Fixed 6.05%
10 Year Fixed 6.15%

Best Variable Rate Mortgage:

Best variable rate is Prime -.60%

MyMortgageBC.com is a mortgage broker located in Vancouver, BC. If you would like the best mortgage rate, or have any questions regarding the mortgage process you should give us a call at 604-764-6336.

Tuesday, October 16, 2007

Bank of Canada Keeps Rates Unchanged

Bank of Canada projects lower growth in '08, keeps rate unchanged


My Mortgage BC.com note: This is an important development for interest rates in Canada. The Bank of Canada predicts a downturn in the economy as a result of the strength of the Canadian dollar. This should help keep mortgage rates steady.

VANCOUVER, BC - The Bank of Canada has kept its key overnight rate unchanged at 4.5 per cent, saying it is less worried about inflation and projecting a marked slowdown in the Canadian economy next year.

In an unusually fulsome announcement, the central bank cites a series of conflicting and changing economic and financial indicators that suggest it may remain on the sidelines in terms of interest rates for some time.

The Canadian economy, it said Tuesday, is running further above its production potential than previously forecast, fuelled by robust global growth and strong commodity prices.

But the Canadian economy is headed for a sharp downturn, the bank predicts.

The deepening U.S. housing crisis will cut into the U.S. economy even further and the bank now projects growth south of the border will average a meagre 1.9 per cent this year and 2.1 per cent next.

That, along with the Canadian dollar soaring above parity with the greenback, and tight credit stemming from the summer financial market turmoil, will also start to cool Canadian growth as U.S. demand for Canadian exported goods dwindle.

As such, the bank has hiked its projected growth for the Canadian economy for this year from 2.5 per cent to 2.6 per cent, but said the economy will slow markedly to 2.3 per cent next year and 2.5 per cent in 2009. In July, the bank had said growth in Canada would average 2.6 per cent next year.

"In line with this projection, the bank judges, at this time, that the current level of the target for the overnight rate is consistent with achieving the inflation target over the medium term," it said in the statement.

But in fact interest rates are higher than would be assumed, the bank said. Following this summer's subprime mortgage meltdown in the U.S., the bank said the cost of borrowing for firms and households a quarter-point higher than assumed prior to tightening credit conditions.

The central bank noted that although inflation has been running ahead of its two per cent target for more than a year, it expects that both core and total inflation will return to the target by the second half of next year.

"There are significant upside and downside risks to the bank's inflation projection," he adds.

On the upside, excess demand in the Canadian economy would persist longer than projected because of higher consumer spending and lower productivity growth.

On the downside, the loonie, which is running well above the bank's previous forecast of 93 to 95.5 cents US, could remain above the 98 cents US level the bank is not projecting, and the spillover from the U.S. housing slump would be greater than expected.

"All factors considered, the bank judges that the risks to its inflation projection are roughly balanced, with perhaps a slight tilt to the downside," it said.

The bank last changed its key rate on July 5, when it hiked interest rates from 4.25 per cent to 4.5 per cent. The bank's next scheduled date for announcing interest rates is Dec. 4.

MyMortgageBC.com is a mortgage broker located in Vancouver, BC. You can take advantage of our knowledge to help you with your next mortgage. Give us a call at 604-764-6336,

Wednesday, October 10, 2007

9 Questions to ask your Lender when shopping for a Mortgage


For most people, obtaining a mortgage is likely the largest financial transaction their lifes. It is important to have as much knowledge as possible to make an informed decision. We have compiled a list of nine basic mortgage questions. Ask your Lender these questions and sit back and listen to the answers. It probably wouldn't hurt to write down the answers. We would be happy to help you make an informed decision with your mortgage.

  • How is the interest on my calculated? What is the difference between monthly and semi-annual compounding?
  • Is the mortgage portable? Is the mortgage assumable?
  • Am I still responsible if someone assumes our mortgage?
  • What are mortgage interest rates based on?
  • When the Bank of Canada changes interest rates, how does this impact my mortgage?
  • What penalties would I pay if I wish to move to another Bank or payoff this mortgage?
  • Is there a way to avoid or reduce mortgage penalties?
  • How are these penalties calculated? What does interest differential mean?
  • Is there a method to make this mortgage tax deductible?
Don't hesitate to contact us at 604-764-6336 if you have any mortgage financing questions.

We can help you obtain a mortgage at the lowest rates.