Save Thousands on Your Existing Mortgage

Save Thousands on Your Existing Mortgage

A family was recently referred to me because they wanted to reduce the interest they were paying on thier mortgage. When they took out his mortgage a couple of years ago his rate was reasonably competitive but with the recent drop in rates he thought he may be able to do a little better. In this particular circumstance my clients weren't concerned about lowering the monthly payment but reducing his total interest paid over the next 5 years. On my clients $240,000 mortgage if they kept the monthly payment the same but took the new lower mortgage rate they saved over $8,000 and as an added bonus reduced the mortgage amortization. The difference between the existing mortgage rate and the new rate was only .75% (3/4 of a percent) and it SAVED them $8000. This was all done no charge to my clients and as always, I was happy to walk the clients through the entire process to make it as painless as possible. If you would like, contact me and I would be happy to do a mortgage analysis to see if I can save you thousands as well.

I'm a fully qualified mortgage broker with Dominion Lending Centres. I spend 100% of my time giving you world class service...guaranteed! I will give you such extraordinary service that you would gladly refer your friends, family neighbors and coworkers to me for their home loan needs. With your help I am able to build strong, lifelong relationships, one person at a time. My goal is to be your mortgage lender for life! Please contact me with any comments or to see how much you can save.

Making sense of today’s housing market

Making sense of today’s housing market

In recent months, economists have had the unenviable task of trying to calculate the direction the housing market is likely to take, factoring in things like unemployment rates, population and immigration figures, economic growth, mortgage rates, and that most nebulous of criteria: consumer confidence.

They agree that the decrease in housing sales and prices bears little relation to the economic indicators in BC. What has changed is public perception of our financial security, triggered by the troubled global financial markets.

As realtors, people are asking us to help make sense of the housing market.

Sellers are asking if the market value of their home is decreasing. Buyers want to know if they should wait for further price reductions. Homeowners not in the market to buy or sell want to understand the impact on their equity, which may affect decisions like plans for renovations.

Investors are asking about short-term impact – is it a good time to buy, renovate, and re-sell for a profit? And long-term impact – is quality real estate now available at lower prices?

First-time buyers want to know how much they need for a down-payment, whether they can afford the monthly mortgage payment, and if they can get financing in these uncertain times.

There are no easy answers. Around the Lower Mainland’s kitchen tables, realtors are helping people assess their individual situations.

Circumstances cause each of us to make decisions despite uncertainties related to global economies and politics. Someone gets a job in another city. A family must consider estate planning for a parent. A young couple wants to start investing in their own home, rather than renting.

Our MLS® statistics and Housing Price Index (HPI) tell us that, since May, residential home sales and prices have been decreasing. After five years of unprecedented growth in home values in the Lower Mainland, that’s not particularly surprising or necessarily unwelcome.

Between 2003 and 2008, the HPI benchmark price of a detached home in Greater Vancouver increased nearly 70 per cent to $761,000 from $449,000. Condominiums over the same period increased 82 per cent to $387,000 from $213,000. Left unchecked at this rate, by 2013 the benchmark price of a detached home would top $1.2 million and condos more than $700,000.

Current trends offer moderation to a market where affordability, for much of this decade, was eroding, making home ownership unattainable to an expanding segment of our community.

Since May, residential home prices have declined 12.8 per cent, resulting in an 8.3 per cent year-to-date price reduction for detached, attached and apartment properties across Greater Vancouver.

These moderating home prices should not be confused with the U.S. housing downturn. Since 2005, prices in the U.S. have been edging downward due in large part to imprudent ‘sub-prime’ lending practices. Mortgages in Canada are tightly regulated and underpinned by a solid banking structure. The World Economic Forum recently identified Canada as having the world's “soundest” banking system.

The local real estate market is not immune to global economic challenges; however, Canada’s disciplined lending structure has kept the mortgage landscape steady in these uncertain times.

While the current rate of foreclosures in the U.S. is nearly five per cent, only 0.28 per cent of mortgages in Canada are in arrears, a proportion that is not only low but steady, according to the Canadian Association of Accredited Mortgage Professionals (CAAMP).

Low prices are not the concern as much as the view that prices are falling. Buyers are waiting to see of the real estate market has hit bottom.

Identifying the “bottom” of a market is difficult, given that certain variables must remain constant to attain real savings. For example, interest rates must remain low and that perfect house must remain available at an acceptable price.

Most of us sell a home and buy a home within the same market; while we may be selling at a lower price, we’re also buying within that lower-priced market.

Deciding to buy or sell a home should be a milestone moment based on your financial and personal circumstances, and the market conditions within your neighbourhood of choice. For those whose finances allow it, there are excellent opportunities in today’s housing market. This is a good market for long-term investors.

The Real Estate Board of Greater Vancouver has existed for nearly 90 years and witnessed numerous market cycles. Sales increase and decrease. Prices go up and down. Historically, the values at the peak of the next cycle inevitably surpass the ones before.

(Dave Watt, president of the Real Estate Board of Greater Vancouver)

I hope you found the above article informative. I'm a mortgage broker located in Vancouver BC working with one of Canada's largest brokerage houses Dominion Lending Centres.

5 Key Ways to Help Improve Your Credit Score

5 Key Ways to Help Improve Your Credit Score

Leading up to the holidays is the perfect time to think about things like improving your credit score and consolidating debt. After all, the holidays are a joyous time that should not be overshadowed by financial woes. And even if your credit score is good, these tips may make it even better. After all, the better your credit score, the fewer hurdles you’ll have to overcome when looking to renew or refinance your existing mortgage, or obtain a new one. Nowadays having good credit is as important as ever. Very few lenders are interested in making exceptions for people that have had credit challenges.

Following are five steps to a speedy credit score boost:

1) Pay down your credit cards. The number one way to increase your score is to pay down your cards to 30% of their limits. Revolving credit like credit cards seems to have a more significant impact on your score than car loans, lines of credit, and so on. Lenders will often use the term credit utilization.

By paying down your cards to 30%, you are leaving a big gap between what your limit is and what you owe – a move that is very favourable to increasing your credit score.

2) Limit the use of your cards. Racking up a large amount and then paying it off in monthly instalments can hurt your credit score. If there is a balance at the end of the month, this affects your score – credit formulas don’t take into account the fact that you paid it all off the next month.

By being more accountable of your spending on a daily or weekly basis through the use of a budget, you can keep those cards below the magic 30% mark.

3) Check your limits. If your lender is slow to report your monthly transactions, this can have a big impact on how another lender may view your file. Make sure everything is up to date. Old bills that have been paid can come back to haunt you.

Some financial institutions don’t even report your maximum limits. As such, the credit bureau is left to only use the balance that’s on hand. The problem is, if you consistently charge the same amount each month – say $1,000 to $1,500 – it may appear to the credit-scoring formula that you’re regularly maxing out that card.

You could go on a wild spending spree to raise the limit, but a more sensible solution would simply be to pay your balance down or off before your statement period closes.

When making payments online, do so about a week before the period closing date printed on your latest statement to ensure the payment is received on time – it can take up to five business days for a payment to be received. This won’t raise your reported limit, but it will widen the gap between your limit and your closing balance, which should boost your score.

4) Keep your old cards. Older credit is better credit. If you stop using those older credit cards, the issuers may stop updating your accounts. As such, they will lose their weight in the credit formula and, therefore, may not be as valuable – even though you have had the card for a long time. Use these cards periodically and then pay them off.

5) Don’t let mistakes build up. Dispute any mistakes or situations that may harm your score. If, for instance, your cell phone bill is incorrect and the company will not amend it, you can dispute this by making the credit bureau aware of the situation.

As always, if you want to talk about your credit score or consolidating debt, I’m here to help. I'm a mortgage broker located in Vancouver BC working for Dominion Lending Centres.

3 Tips to Compare Adjustable Rate Mortgages for the Best Deal Possible

3 Tips to Compare Adjustable Rate
Mortgages for the Best Deal Possible

In the last couple of years, adjustable (or variable) rate mortgages have become more popular in Canada, as well as with our neighbors down south in the United States. An adjustable rate mortgage can be a wonderful money-saving option. However, comparing multiple loans to each other can be a bit complicated to do.

While a traditional fixed-rate mortgage can easily be compared to another fixed-rate mortgage, the process becomes a bit trickier when you are dealing with multiple adjustable rate mortgages. Adjustable rate mortgages (ARMs) came in many forms and with many different options. The choice you have to make between ARM mortgage options can make for a very large difference in the quality, and cost, of the loan which you ultimately accept. So, it is important to be able to compare them to each other to make the best decision you possibly can. .

Most people have two basic issues when they try to compare two ARMs; the math to calculate the effective prime discount is not simple, and understanding what all of the various different options mean. No matter which lenders you are working with, there are three things you should first understand and keep in mind throughout the process. They are:

Understand Low Introductory “Teaser” Rates and Mortgage Costs.

The first thing you need to understand is how much a particular loan will cost you between the time you sign on the dotted line, and the time when the mortgage becomes open or renews.

To easily determine the cost of a mortgage until it becomes open or renews, you can multiply the introductory rate of the loan by the number or months it will be effective. Then multiply the interest rate of the loan after the introductory period by the number of months until the mortgage opens or renews. Add these two numbers together and divide by the total number of months the mortgage will be in effect before it opens or renews. This gives you a weighted average calculation and allows you to easily compare one ARM to another.

Understand Rate Discounts and Conversion Options.

Many people go into an adjustable rate mortgage assuming that they can easily convert to a closed term mortgage without any penalty, whenever they choose to. However, it is vitally important that you know exactly what the rate discount will be if you choose to convert. You may find that it costs you more than three month’s worth of interest to switch lenders and forces you to stay with the lender you currently have. If this is the case, then you will not be able to change lenders until your mortgage becomes open or renews without significant cost.

Understand How Interest Rate Changes Will Affect Your Payments.

There are currently two popular options with ARMs. The first type of ARM has payments which adjust as the prime interest rate moves up and down. This means that your amount due each month is constantly changing with the prime rate. This can be a good deal if rates drop and you can stomach the constant change. However, if you need stability in your payments from month-to-month, then this is probably not the best option for you to choose.

The second type of ARM keeps the payments the same each month but changes the amount applied to principle and interest based on the prime rate. For example, when the prime rate goes up then your payment applies more to interest than to principle. This means it could ultimately take longer to pay off your mortgage because you are paying less on principle each month if the prime rate is high.

Adjustable rate mortgages can be great alternatives to traditional closed-term mortgages. However, when you are evaluating your choices in an adjustable rate mortgages it makes a lot of sense to take the time to learn about, and understand, introductory teaser rates, discounts and conversion rates, and how the prime rate will affect your mortgage payments and ultimate payoff time. Once you fully understand what ARMs are all about, and which options best suit your situation.

As a mortgage broker I can help you get the best adjustable rate available. I work with one of Canada's largest mortgage brokerage firms Dominion Lending Centres Leading Edge.

The Best Asking Price for your Home

The Best Asking Price for your Home

In market like we're in now the most important thing when selling your house within a reasonable time frame is starting at the right price. Setting a realistic price for your home that reflects current market values will help sell your home quickly and for top dollar. When you price your home properly, you increase the chances that the offer you receive will nearly match your asking price, and that there will be competing offers (although, not very common in this market)—which may net you even more in the long run.

Your property has the best chance of selling within its first seven weeks on the market. And, studies indicate that the longer a property stays on the market, the less it will ultimately sell for. A property priced 10 % more than its market value is significantly less likely to sell within this window than a property priced close to its actual market value. About three-quarters of homes on the market today are 5-10 % overpriced. Sellers will usually over-price their homes by this margin if, either, they firmly believe the home is worth more than what the market indicates, or if they want to leave room for negotiation. Either way, if you choose to over-price your home by this amount, you run the risk of increasing the amount of time your home spends on the market, and decreasing the amount of money you’ll ultimately receive. At the other end of the selling spectrum are houses that are priced below a fair market value. Under-pricing often occurs when the owner is interested in a quick sell. You can bargain on these homes attracting multiple offers and ultimately selling quickly at—or above—the asking price.

The knowledge and skills of an experienced Realtor will be invaluable when determining an appropriate asking price. It is the job of your Realtor to know the current market and market trends inside and out, to be closely connected to the real estate market at large, and to be aware of other properties currently for sale in your particular area. Based on this range of connections and knowledge, your Realtor should counsel you on how to price your home properly in order to attract the highest price possible, in the shortest period of time. Before approaching this process, you should first do some homework yourself. You’ll need to know the workings of the current market before you even begin to think about setting an asking price. The market will always influence a property’s value, regardless of the state of a home, or its desirability.

Here are the types of market conditions and how they may affect you:

Seller’s Market: A Seller’s market is considered a “hot” market. This type of market is created when demand is greater than supply—that is, when the number of Buyers exceeds the number of homes on the market. As a result, these homes usually sell very quickly, and there are often multiple offers. Many homes will sell above the asking price.

Buyer’s Market: A Buyer’s market is a slower market. This type of market occurs when supply is greater than demand, the number of homes exceeding the number of Buyers. Properties are more likely to stay on the market for a longer period of time. Fewer offers will come in, and with less frequency. Prices may even decline during this period. Buyers will have more selection and flexibility in terms of negotiating toward a lower price. Even if your initial offered price is too low, Sellers will be more likely to come back with a counter-offer.

Balanced Market: In a balanced market, supply equals demand, the number of homes on the market roughly equal to the number of Buyers. When a market is balanced there aren’t any concrete rules guiding whether a Buyer should make an offer at the higher end of his/her range, or the lower end. Prices will be stable, and homes will sell within a reasonable period of time. Buyers will have a decent number of homes to choose from, so Sellers may encounter some competition for offers on their home, or none at all. Remember, a Realtor is trained to provide clients with this information about the market, helping you make the most informed decision possible.

The right Realtor will guide you through the ups and downs of the market and keep you up-to-date with the types of changes you might expect. Evaluate your house in the other main areas that affect market value:

Location: The proximity of your home to amenities, such as schools, parks, public transportation, and stores will affect its status on the market. Also, the quality of neighbourhood planning, and future plans for development and zoning will influence a home’s current market value, as well as the ways in which this value might change.

Property: The age, size, layout, style, and quality of construction of your house will all affect the property’s market value, as well as the size, shape, seclusion and landscaping of the yard. Condition of the Home: This includes the general condition of your home’s main systems, such as the furnace, central air, electrical system, etc., as well as the appearance and condition of the fixtures, the floor plan of the house, and its first appearances.

Comparable Properties: Ask your Realtor to prepare you a general market analysis of your neighbourhood, so you can determine a range of value for your property. A market analysis will provide you with a market overview and give you a glimpse at what other similar properties have been selling for in the area.

Market Conditions/ Economy: The market value of your home is additionally affected by the number of homes currently on the market, the number of people looking to buy property, current mortgage rates, and the condition of the national and local economy.


We are Mortgage Brokers located in Vancouver British Columbia and are happy to answer any questions you may have regarding the home buying and selling process.

Is 100% Financing Still Available?

In an article dated November 11, 2008 in the Vancouver Sun they point out 3 ways that you can avoid having to meet the Federal Governments minimum requirement of a 5% down payment on a property purchase.

The 3 basic ways in the Vancouver Sun article in which you can avoid the 5% down payment are in the are as follows;

• Wells Fargo still offers 100% financing because they self insure their mortgages. Wells Fargo 100% financing mortgages are available through mortgage brokers such as myself.

• Borrow the 5% from credit cards or lines of credits. There is more to it than simply borrowing from a line of credit or existing credit card. You need to make sure you get proper advice before simply borrowing for the down payment and are aware of the specific rules set out by mortgage insurers before considering this mortgage option.

• Borrow the 5% from a friend or family member and then take a cashback mortgage and pay them back. There are significant costs to a cashback mortgage that you should be fully aware of before being tempted by this type of mortgage arrangement. Although despite the cost it can make sense in certain scenarios.

Below is the link to the Vancouver Sun article:

Want a mortgage at 0%?All you need to do is skirt a few rules

I think it's important to point out that all 3 options carry a cost to the borrower with the second option most likely being the cheapest.

I also feel it's important to note that any time your skirting around rules you could open yourself up to potential problems unless you are fully aware of all of the issues.

Don't hesitate to contact me if you have any questions on the Vancouver Sun mortgage article.

You can also visit my website for tips on mortgages in Vancouver at MyMortgageBC.com.

Why the Canadian Housing Market is Not Set to Melt Down

This article provides a much different perspective on the Canadian housing market. All I've been hearing is gloom and doom so this is somewhat refreshing. Please feel free to leave your comments.

Why the Canadian Housing Market is not set to Melt Down.

While the "best days" for Canada's real estate markets may be over, comparing the Canadian outlook to the U.S. housing meltdown is off base, two Bank of Nova Scotia economists say in a new report.

Earlier this week, Merrill Lynch Canada economists warned Canada's housing market could be vulnerable to a U.S.-style crash, drawing a response from Prime Minister Stephen Harper rejecting that.

Derek Holt, vice-president of Scotiabank's economics department, and his colleague Karen Cordes, cite several reasons why the Canadian mortgage market is healthier than that of the United States. They do not mention the Merrill study.

"We do believe that the best days for Canadian housing markets are behind us, and that lower volumes of new home construction and resales lie ahead alongside further fairly modest erosion of house prices," they write. "Calgary and Edmonton are the most exposed in this regard. But, arguing that consequences to the overall Canadian economy and to debt markets particularly in terms of mortgage-backed securities are as severe as they are in the U.S. is way off base."

Here are the findings of Scotiabank's Mr. Holt and Ms. Cordes, as printed in their report:

Debt growth over the full cycle

Much is being made of the fact that Canadian debt growth relative to incomes over recent years has been on par with the U.S. experience.

Ergo, one is led to conclude, Canada must face similar stresses to its own housing and mortgage markets.

Nonsense. One must look at the full cycle and use the right measures. Recent Canadian debt growth reflects the unleashing of pent-up demand from the 1990s. Canada's recession in the early 1990s was more severe, and the effects were longer lasting by way of how long it took housing markets and the consumer sector to get back on their feet. The U.S. recession of the early 1990s was comparatively mild, and the economy rebounded faster such that U.S. debt growth over the long-haul has exceeded debt growth in Canada.

Leverage - night and day comparisons

Canada's ratio of household debt-to-income is much lower than the U.S. Despite its popularity, however, this is the worst way to look at leverage since it compares total debt amortized over decades to a single year's after-tax income, which is a stock-to-flow comparison that most economists avoid. One doesn't take out a mortgage on Jan. 1 with the expectation of having to pay it all back out of the current year's income by Dec. 31, so why make the comparison?

The best way to judge the full cycle's influences upon debt growth in Canada versus the U.S. is to look at where the two countries stand today on leverage on the household balance sheet (i.e., debt as a share of assets). This must be done by making adjustments to ensure comparability of Canadian and U.S. household sector balance sheet data. In Canada, total debt as a percentage of total assets sat at 20 per cent as at the end of 2007. The U.S. ratio is about 26 per cent. By corollary, Americans have used nearly 30 per cent more debt to purchase assets than Canadians. Clearly, Americans and Canadians have different debt tolerances.

Canadian mortgage markets are fundamentally healthier than the U.S.

• Canada's subprime market is small (5-6 per cent of outstanding mortgages) whereas the U.S. share peaked at about three times that. As a share of originations, 20-25 per cent of new mortgages in the U.S. were subprime over the 2004-06 period. So Canada isn't anywhere near as exposed to the products that caused most of the damage in U.S. housing markets.

• Not only is Canada's subprime market much smaller, but it isn't even really subprime per se. Canada's subprime market is more like the U.S. near-prime market, whereas the U.S. subprime market often lent to borrowers with extremely impaired quality.

• Adjustable rate mortgage (ARMs) resets also caused many of the problems stateside, but those resets occur much more suddenly in the U.S. By contrast, the closest Canadian product parallel is the variable rate mortgage, but they get constantly repriced so that people aren't caught offguard years later. Furthermore, in Canada, some variable rate products adjust the principal, not the payment. On balance, the shock effect from payment resets in Canada is nowhere close to what has caused much of the problem in the U.S.

• Canada's mortgage equity withdrawal market isn't like the U.S. We've seen secured home equity lines of credit (Helocs) grow in Canada as a way of withdrawing equity, but nothing like the U.S. withdrawals picture. U.S. homeowners' equity has been in free-fall with mortgage debt growth outpacing housing assets since the early 1990s. Canada, by contrast, retains much higher homeowner equity, and while it may have reached a plateau, the figure has risen in recent years while the U.S. position has deteriorated.

• Mortgage interest is deductible against taxes in the U.S. It generally is not in Canada. That creates vastly different incentives to leverage oneself in the two markets.

• The nature of the products has been very different in Canada versus the U.S. Examples of Canadian innovation like long amortization mortgage products are absolutely nothing like "Ninja" mortgages. Mortgage innovation was needed in Canada, but has been relatively more conservative.

• Further to this latter point, long-amortization mortgage products actually extend the Canadian credit quality cycle. Long amortization periods of over 25 years have been dominant as a share of new mortgage originations since the 40-year mortgage was introduced almost two years ago. However, there is still an overwhelming majority of Canadians who face the option of extending from the previously standard 25-year product into longer amortization products in a manner that lowers their payments in the face of shocks. Even though insured 40-year mortgages are now banned in principle, 35-year mortgages still provide this flexibility.

• Investor mortgages were among the first products to default in the U.S. ,where they account for about 9 per cent of all outstanding mortgages, similar to the U.K. (9.5 per cent) and Australia (10 per cent). In Canada, however, they are about 2-3 per cent of all outstanding mortgages. There are problems in the investor segment the world over, but the magnitude of the exposure in Canada is far less significant.

• If there is an imminent problem brewing, then it's not showing up in terms of industry-wide mortgage delinquency patterns. Mortgages 90+ days in arrears in Canada remain at 27 basis points, which is the range around which they've been floating since mid-2004. By contrast, even when the country had double digit variable mortgage rates and double digit unemployment rates in the early 1990s, the peak rate of delinquency was about 65 basis points. We're of the opinion that delinquencies will deteriorate going forward, but will be nowhere close to the U.S. experience.

• The extent of runaway house price inflation was much more muted in Canada than in many other countries. Canada's priciest market is Vancouver, and prices have gone up by about 80 per cent since the mid-1990s start of the global housing cycle. London, England, by contrast, went up by about 270 per cent over this time period. Canada's house price appreciation was, on average, significantly below the U.S. experience since then, and much below the experience of many European countries.

Canadian mortgages are funded, underwritten, and enforced in a totally different manner

• Canada's funding model is completely different from the U.S. The majority of mortgages are held on balance sheet in Canada, with only 24 per cent having been securitized. Thus, much more of Canada's mortgage book is funded by on-book retail deposits than is the case in the U.S. That also makes the banks more conservative about the products they are originating since they are mostly stuck on balance sheet.

• Further, the majority of the securitized totals have been done through the CMHC - a Crown corporation with explicit government backing - thus avoiding the problems in the U.S. caused by the ambiguity of GSE liabilities. Other insured securitizations have been done through private insurers that also receive explicit government backing for the underlying assets through the Canada Mortgage Bond program.

• Furthermore, Canadian financial institutions are not as reliant upon short-term lines extended by other financial institutions. The degree of reliance upon such funding in the U.S. is what caused excessive exposure to short-term swings in market sentiments, not to mention adverse incentive effects.

• Mortgage-Backed Securities (MBSs) were not placed in off-balance-sheet SIV and CDO structures as in the U.S. So, Canada MBS investors do not face the same heavily leveraged investor risks. This is perhaps the most important point, since origination mistakes in the U.S. were bad enough, but what really caused the problems were dollops of leveraging that occurred after the mortgages were originated.

• Unlike many U.S. banks, Canadian banks continue to apply prudent underwriting standards. In other words, they have always checked, and continue to check, incomes, verify job status, ask for sales contracts, etc., such that all those questions your banker asks in Canada have a purpose that somehow got lost on many American bankers. The no-income-no-job-no-asset ("Ninja") style, here-are-the-keys-to-your-brand-new-home lending just didn't take hold in Canada.

• Appraisal standards are generally higher in Canada, where appraisals are more likely to low-ball estimates of property value before making the final decision on how much to lend.

• Finally, enforcement of Canadian mortgages is not as tilted in the borrowers' favour as it is in the United States. In the U.S., lenders have little recourse - they can take the keys and settle relatively quickly, or sue and go through great expense for a potentially lengthy period. Alberta is similar to the U.S. treatment in this regard. But the rest of Canada provides greater recourse to lenders than in the U.S.

Globe & Mail

I'm a mortgage broker in British Columbia.

Vancouver Home & Interior Design Show

For those Homeowners in the Vancouver Lower Mainland area you may be interested in the upcoming Vancouver Home and Interior Design Show. This is THE event for anyone just looking for a few ideas and the basics or for someone that wants re-do their entire home. They'll have many exhibits and demonstrations throughout the event. Event runs from Oct 16th to the 19th at BC Place.

Show Dates & Hours

Thursday, October 16 4 pm - 10:00 pm
Friday, October 17 Noon - 10:00 pm
Saturday, October 18 10:00 am - 10:00 pm
Sunday, October 19 10:00 am - 6:00 pm

What does it cost?

Adult (online):	$12.00
Adult (at door):	$14.00
Seniors (55+):	$10.00
Children 7 - 17:	$5.00
Childre ages 6 & under:	FREE

Tickets available at the door – cash only.

Visit here learn more about the Vancouver Home and Interior Design show.

Although I'm not an interior designer I can help finance that big renovation or home update as a Mortgage Broker located in the Vancouver area. I'm always available to answer any questions you might have. Enjoy the show.

Canadian Mortgages and the US Crisis

Canadian Mortgages and the US Crisis

Some of you may be wondering the impact the current US Financial crisis may have on the Canadian economy and the impact on Canadians seeking mortgages.

In Canada our lenders were much more conservative and didn't offer the aggressive mortgage products that the US lenders did. The exposure that Canadian mortgage lenders have is much different than that of the US. The aggressive US mortgage products were big contributors to the current US financial problems. The conservative Canadian mortgage lending practices have allowed us to remain separated from the US credit crisis.

In Canada, we are experiencing an economic slowdown, but nothing like what the US is experiencing. We are also yet to see rising inflation numbers despite the increase in the price of fuel. If we find ouselves in an inflationary environment we will see the impact with higher mortgage rates.

Bank of Canada has stated that they will continue to provide liquidity as required in order to support the stability of the Canadian financial system and the functioning of the financial markets.

The Canadian government is expected to keep interest rates low to stimulate the markets. The Canadian government has taken preventive measures to avoid the housing crisis in the US. As of October 15, 2008 Canadian Banks and mortgage lenders will no longer be able to offer 40 year ammortizations, 100% mortgage financing and minimum credit score requirements.

This will impact the have to become more strict therefor making it more difficult to obtain a mortgage from the big lenders in Canada. I've seen lenders become more and more stringent over the last year. =This approach started with mortgage lenders last year and has accelerated as the US continues to struggle. With that said, all lenders are still happy to provide mortgages to people that can prove income, have a down payment and good credit.

I'm a mortgage broker in Vancouver, BC and offer mortgages throughout BC at the best mortgage rates possible. Visit me at www.MyMortgageBC.com

Don't hesitate to leave your comments and thanks for visiting.

Bank of Canada Holds the Prime Rate Steady

Bank of Canada To Keep Interest Rates Unchanged

Vancouver — My Mortgage BC.com - 03 Sept - The Bank of Canada stuck to its guns on interest rates Wednesday, holding the overnight rate at three per cent despite acknowledging that both inflation and the economy are weaker than previously projected.

The central bank's decision to stay on the sidelines for the third consecutive announcement date had been widely predicted.

"There is absolutely no signal here whatsoever they are preparing to cut rates (in the future)."
Scotia Capital economist Derek Holt, who had urged the bank to lower its key interest rate to spur borrowing and boost the economy, was even more blunt, calling Carney's language on the economy as bordering on the "Pollyannish."

With a federal election call expected later this week, the bank may not have wanted to send a strong signal about downside risks to growth, he said.

The market's reaction, boosting the Canadian dollar almost a cent to 94.54 cent U.S. in early trading, was an indication many expected a clearer signal from Carney on future interest rate cuts.

Inflation currently stands at 3.4 per cent.

The bank said the economy remains vulnerable to U.S. weakness and tight credit conditions that could further drag down demand for Canadian exports.
"Given these developments, the bank judges that the current level of the target for the overnight rate remains appropriately accommodative," it said.
Porter said the bank may feel that having chopped 1.5 percentage points from the overnight rate since December, it has cut interest rates deep enough.

The Bank of Canada's next interest rate decision will be Oct. 21.

MyMortgageBC.com is a mortgage broker located in Vancouver BC.

Bank of Canada Unlikely to Raise Interest Rates

Interesting article in the Vancouver Sun today predicting that the Band of Canada is unlikely to raise rates. This is great news for those in variable rate mortgage products.

BoC unlikely to raise rates, despite inflation jump

Vancouver Sun

Published: Thursday, August 21, 2008

Inflation in Canada clocked in at 3.4 per cent in July, the highest level in more than five years. Yet with the economy still weak, economists agree that the Bank of Canada is unlikely to attempt to rein in inflation by raising its bank rate in September.

The biggest contributor to July's inflation was gas prices, which were 28.6 per cent higher across the country last month compared to a year earlier, Statistics Canada reported Thursday.

Food prices and mortgage interest costs were also up, the report said.

On the other side of the balance sheet were drops in the prices of vehicles and computer equipment, Statistics Canada said.

In British Columbia, the inflation rate was slightly below average at 3.3 per cent despite an above-average increase in the cost of gas, which rose 31.5 per cent in the province.

The gas-price increase may reflect the provincial government's new carbon tax, which was implemented on July 1 and added 2.4 cents a litre to the price of gas, said Bernie Magnan, chief economist with the Vancouver Board of Trade.

The province's lower-than average inflation rate may be due to B.C. residents having to spend such a large portion of their income on housing that businesses have a hard time raising prices for other goods, Magnan said.

With the price of gas expected to drop in August, inflation is likely to ease too, he said.

But Derek Holt, vice-president of Scotia Capital Economics, said inflation is likely to stay high because it is measured year over year. So even as gas prices fall, they remain higher than they were a year ago.

Holt counselled not paying too much attention to the year-over-year numbers and focus instead on month-to-month comparisons.

While inflation was 3.1 per cent in June compared to a year earlier, prices were up 0.8 per cent from May. But price rose only 0.3 per cent from June to July, an indication that inflation is actually cooling, Holt said.

Taking the volatile elements out of the equation, such as fuel and fruits and vegetables, inflation was only "a remarkably well-behaved" 1.5 per cent, Holt said.

"So that suggests that even though commodities were elevated there really wasn't any pass-through of those higher commodity prices by businesses into the broader spectrum of consumer pricers," Holt said.

However, B.C. may start experiencing higher than average inflation in the coming months because of the buildup to the Olympics, he added.

Cities hosting Olympics usually have higher inflation rates leading up to and after the Olympics because of the work involved getting ready and the people and business the games attract, he said.

So far B.C. has remained "surprisingly well-anchored," Holt said.

That could be due in part to the dampening effect a weak U.S. economy has on the province, especially its forest sector, he said.

Both Holt and Magnan believe that despite July's high inflation rate - the highest since March 2003 - the Bank of Canada is unlikely to change its overnight target bank rate in September.

While the central bank's focus is a target inflation rate of around two per cent it also has to ensure any rate changes don't hurt the economy, they said.

Holt added that while the bank will hold rates steady in September, it will communicate its intention to focus on the economy, thus paving the way for rate cuts, despite the high inflation numbers, as soon as October.

I'm a mortgage broker located in Vancouver BC. Please don't hesitate to contact me if you have any questions regarding mortgages.

Real Estate Expectations Changing

A market shift = a shift in expectations

Real Estate market conditions in the Lower Mainland and other parts of BC have shifted. After five years of blockbuster Real Estate activity in BC and double-digit price growth, market conditions have slowed, and now favour buyers in many areas of the province.

Residential sales have declined 22 per cent in the first six months of this year, while available resale inventory has grown by 54 per cent to 57,000 active listings in June. In the Greater Vancouver board area, where longer-term data is available, inventory is at the highest level since 1998.

Home price appreciation observed from 2004 to 2007 is less attainable in today’s market, and sellers’ expectations for such gains should be tempered. More generally, in a market favouring buyers, prices generally increase at or below the level of inflation. While the average residential home price in BC increased at a healthy 6 per cent per year since 1981, large gains are often followed by periods of price stagnation. Over-optimistic pricing by sellers will only inhibit the timely sale of properties, adding to inventory levels.

Buyers have more homes to choose from now than in previous years, resulting in greater freedom to compare the attributes and prices of similar properties in the market before making purchase decisions.

Despite current buyers' market conditions fuelled by housing affordability constraints and economic uncertainty, the economic and demographic backdrop in support of housing demand remains strong in BC. BC's unemployment rate remains near record lows, while the labour force participation rate hovers near historical highs. Meanwhile, the province remains a favoured destination for new migrants, reflected in the third-highest population growth among provinces during the first quarter of 2008. However, challenges continue in the forestry sector, and eroded consumer confidence may also be playing a role in a pull back of consumer spending.

As a mortgage broker I can still offer 100% until October 2008 at fully discounted rates.

100% Financing & 40 Year Ammortizations Coming to an End

It looks like the days of Zero down mortgages and 40 year amortizations in Canada are numbered. The changes are set to take place October 15, 2008 which gives those 90 day closings and rate holds a chance to either fund or expire. It will be interesting to see if this causes a short term run up on housing sales as people jump to take advantage of the 40 year or 100% before its gone. It will equally as interesting to see what effect this has on house pricing, especially in the lower mainland when the 35 year amortization becomes the max.

Ottawa revamps mortgage rules

KEVIN CARMICHAEL

Globe and Mail Update, Reuters

July 9, 2008 at 4:36 PM EDT

OTTAWA — The federal government says it will no longer guarantee 40-year mortgages, one of a handful of measures aimed at guarding against a U.S.-style housing bubble.

The Finance Department said Wednesday in a news release that the government will guarantee no mortgages with durations longer than 35 years. The government also will demand a minimum down payment equal to 5 per cent of the value of the home.

“Today's announcement marks a responsible and measured approach by the government to ensure Canada's housing market remains strong and to reduce the risk of a U.S.-style housing bubble developing in Canada,” the Finance Department said.

The government hastened to emphasize that Canada's housing and mortgage markets were performing much better than in the United States.

Canadian housing prices are in line with economic factors such as low interest rates, rising incomes and a growing population and the demand for residential housing remains buoyant at more than 200,000 housing starts a year, it said.

The percentage of bank mortgages in arrears is also stable at 0.27 per cent, the lowest levels experienced since 1990 and well below the highs of 0.65 per cent in 1992 and 1997.

“The historically prudent and cautious approach taken by Canadian financial institutions to mortgage lending, combined with a sound supervisory regime, has allowed Canada to maintain strong and secure housing and mortgage markets,” it said.

It nonetheless noted “accelerated financial innovation” in the mortgage markets since the fall of 2006, for example, allowing loans up to 100 per cent of the value of the house and increasing amortization periods to 40 years from 25 years.

The government will now require a consistent credit score for mortgages it backs, and a minimum level of loan documentation standards to ensure evidence of the reasonableness of property values and the borrowers' income.

In addition, government guarantees will not be allowed for high-ratio mortgages where amortization is not required in the first few years – e.g., mortgages that begin with interest-only payments.

Finally, it will set a maximum of 45 per cent on a borrower's debt-service ratio – the proportion of gross income that is spent on debt service and housing-related fixed or essential payments.

April 2008 MLS Stats

April MLS Statistics:

The number of residential units sold in B.C. on the Multiple Listing Service® (MLS®) declined 11% in April compared to the same month last year, with 8,623 units sold. Residential sales dollar volume reached $4.1 billion this month, a 1.4% drop compared to the same month last year, while the average residential home price reached $478,044, an increase of 10.7% compared to April 2007.

Greater Vancouver: The number of residential units sold in April reached 3,308, a drop of 5% compared to the same month last year, while dollar volumes increased 3.6% to $2 billion. The average residential home price reached $615,304 this month, an increase of 9% compared to April of last year.

Fraser Valley: The number of units sold in April declined 0.5% compared to the same month last year with 1,687 units sold. Dollar volumes increased 2.3% to $740.9 million however, while the average residential home price increased 2.7% compared to April of last year reaching $439,188.

Chilliwack: April sales declined 11% to 267 units, while dollar volumes reached $87 million, a 0.4% drop compared to the same month last year. The average residential home price continued to climb in April reaching $325,824, an 11.9% increase compared to April of last year.

Victoria: Sales in April reached 730 units, a 14.2% decline compared to the same month last year. Dollar volumes also dropped 10.4% to $361 million, while the average residential home price reached $494,204, a 4.5% increase compared to April of last year.

Vancouver Island: The number of residential units sold in April reached 824, a decline of 11.8% compared to the same month last year. Dollar volumes declined 1.3% reaching $287.7 million, while the average residential home price rose 11.9% to $349,106.

Okanagan (including South Okanagan): The Okanagan and South Okanagan markets recorded 857 units sold in April, a decrease of 26.2% compared to April of last year, while dollar volumes declined 14.1% to $360 million.

Kamloops: Dollar volumes dropped 23.3% compared to the same month last year reaching $79.8 million in April. The number of sales dropped 35.3% with 249 units sold, while the average residential home price jumped 18.6% compared to April of last year reaching $320,608.

BC Northern: Residential sales continued to decline in April with 399 units sold, a drop of 13.6% compared to April of last year. Dollar volumes increased 3.5% to $90.2 million, while the average residential home price recorded a 19.9% increase reaching $226,094.

Kootenay: The number of residential units sold in April reached 227, a 33.4% drop compared to the same month last year. Dollar volumes also declined 24.5% reaching $64.9 million, while the average residential home price increased 13.4% compared to April of last year hitting $285,944.

Bank of Canada Drops Rates By .50%

April 22, 2007 - Bank of Canada drops the overnight rate by .50%.

None of the lenders have reacted by lowering their mortgage rates yet but as soon as I see somes changes by the mortgage lenders I'll post the mortgage rate updates.

Here is the link to the Bank of Canada press release regarding the rate drop.

This is the best time to be pre-approved for a mortgage that we've seen in a long time. Give me a call at 604-764-6336.

Interest Rates Heading Lower? TD Securities Thinks So.

April 10 (Bloomberg) -- Canada's February trade surplus widened to the largest in nine months, led by increased exports of passenger cars and energy. The surplus widened to C$4.94 billion from a revised C$2.78 billion in January, Statistics Canada said today in Ottawa. Exports rose 3.8 percent, the fastest in 11 months, as energy sales abroad rose to a record.

Canada, the world's eighth-biggest economy, is benefiting from high demand for commodities such as oil and metals, helping the country ride out a slump in manufacturing. Still, the outlook for exports is likely to worsen in future months as the U.S. economic slowdown crimps demand for Canadian products, said Jacqui Douglas, an economist at TD Securities in Toronto.

``I don't think the Bank of Canada is expecting this to continue,'' Douglas said of the widening surplus. ``The risk is that exports turn down sharply over the next few months.'' The central bank cut interest rates by half a point for the first time since 2001 on March 4, citing ``intensifying'' signs of a decline in exports on slower demand from the U.S. and the high Canadian currency.

TD Securities, a division of Toronto-Dominion Bank, expects the central bank to lower interest rates 150 basis points to 2 percent by July, starting with a 50 basis point reduction at the next announcement on April 22.

TOP 5 TIPS FOR FIRST-TIME BUYERS

TOP 5 TIPS FOR FIRST-TIME BUYERS

1. Don't shop on an empty stomach: Experts (like me) recommend getting pre-approved for the biggest mortgage you can comfortably afford before you start looking at homes. That way you won't be disappointed when you find out you can't afford that dream home you've set your heart on.

2. Investigate your location: Before you buy, check out local schools, recreational opportunities, amenities and arts and culture. These things often get overlooked in the quest for an easy commute.

3. Practise the commute to work: Before signing anything, try actually getting up early in the morning and doing the commute to work a few times so you'll know how long it really takes.

4. Do your homework: Research government programs that assist first-time home buyers such as the property transfer tax credit or the RSP Home Buyers Plan, as well as the developer's project history in the case of new and nearly new homes.

5. Take advantage of low down-payment mortgages: Experts say even 0 and 5 per cent-down mortgages are a good move in this market because home values are appreciating faster than people can save for bigger down payments.

I would be happy to help answer any questions you may have if you're a first time home buyer or would like to be pre-approved for a mortgage. I can be contacted at 604-764-6336 or via email brent@globalmortgagecorp.net.

Lower Mainland Free First-Time Home Buyers Seminar

Lower Mainland Free First-Time Home Buyers Seminar

With home values still rising, Vancouver-area young people are eager to purchase their first homes, but many need help to de-mystify the process. They have lots of questions. How can I be safe purchasing a condo before construction starts? What location is best? What type of home is best matched to my needs and financial resources? What are the mortgage options? What are the legal considerations? How do I benefit from builder licensing and mandatory home warranties?

These and other key questions will be answered by a panel of housing experts at the 14th Annual Seminar for First-time Home Buyers, presented by the Greater Vancouver Home Builders' Association (GVHBA) on Tuesday, April 8 from 7 p.m. to 9 p.m. in the Guildford Sheraton Hotel Ballroom, 15269 104 Avenue, Surrey.

Admission to the popular seminar is free thanks to the sponsorships by TheVancouver Sun, The Province, Homeowner Protection Office, Canada Mortgage & Housing Corporation, Real Estate Board of Greater Vancouver, Genworth Financial Canada, TD Canada Trust, Shaw Cablesystems, CKNW, Rock 101, AM 730 and 99.3 the FOX.

Speakers are Robyn Adamache, senior market analyst, Canada Mortgage & Housing Corporation; Ken Cameron, chief executive officer, Homeowner Protection Office; Narrinder Dhanoya-Bhangu, regional vice president, Genworth Financial Canada; Bill Niblett, regional sales manager, TD Canada Trust; Deborah Spicer, director, Real Estate Board of Greater Vancouver; Ralph Archibald, senior vice president, Polygon Homes; and Adnan Habib, managing partner, Baker Newby Barristers and Solicitors. GVHBA Chief Executive Officer Peter Simpson will be the seminar moderator.

"Our experts will help first-time buyers complete their homework by investigating all available options and issues before they take that crucial first step onto the property ladder,” said Simpson.

"More than 800 people attended last year’s seminar and, because real estate is still a hot topic, including the pre-construction buying process for condominiums, we expect a similar attendance this year. Doors open at 6 p.m., allowing attendees ample time to view displays of new homes, financial choices, warranties and other housing-related products and services," said Simpson.

My Mortgage BC.com note: I've spoken to people that have attended this event and the past and have said it was very informative. We are mortgage financing specialists with the experience to not only walk you through the home buying process from the beginning to the end but will also ensure you get the best mortgage rate to ensure that you save money (often thousands). Please give us a call at 604-764-6336 if you have any questions about obtaining a mortgage or the home buying process.

Pre-registration is required. Call 604-588-5036 from 8:30 a.m. to 5 p.m. Monday to Friday. Registrations will also be taken by answering machine at the same phone number on weekends.

Mortgage Rates Coming Down?

Helmut Pastrick is the chief economist for BC Central Credit Union. Helmut expects that mortgage rates will continue to decline in 2008 and 2009. "Most of the decline in 2008 will be in variable-rate mortgages, while in 2009 fixed-term mortgage rates will drop the most," he said.

"The Bank of Canada cut its target rate by 50 basis points to 3.50% on March 4, bringing the cumulative reduction in rates to 100 bps since the Bank started easing last December. Another rate cut in April is practically guaranteed and another in June is highly likely. Further rate cuts are possible, but at some point the economic news and outlook will begin to improve. That will probably play out in the second half of 2008. There is considerable monetary and fiscal stimulus in the U.S. pipeline and some in Canada as well. The Bank is in a holding pattern until mid-2009, when it will begin returning the target rate to levels appropriate to evolving higher economic growth. Longer-term bond yields will climb higher as the economic news and outlook improves in 2009. However, this will not translate into higher fixed mortgage rates, since the cost of funds will decline when credit markets return to a more normal state and the current abnormally high risk spreads narrow."

Home Sales Slip in February

Home Sales Slip in February

Vancouver, BC – March 17, 2008. British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC rose 4.5 per cent to $3.26 billion in February, compared to the same month in 2007. Residential unit sales dipped 9.8 per cent to 6,822 units during the same period. The average MLS® residential price in the province reached $478,172 in January, up 15.8 per cent from February 2007.

“BC home sales fell for the second consecutive month, marking the slowest start to a year since 2003,” said Cameron Muir, BCREA Chief Economist. “While it’s still too early to call a trend, fewer home sales and an increase in active listings may be pulling the BC housing market toward balanced conditions.”

“Strong employment and wage gains over the last year continue to underpin housing demand,” said Muir. The number of unit sales recorded in the month was 13 per cent above the February average from 1998 to 2007. “However, continued erosion in housing affordability may be taking a toll on the ability-to-pay for some buyers.”

Additionally, a weak US economy and lower demand for BC lumber is negatively impacting BC’s forestry industries and local resource communities, while current economic volatility may also be impacting the confidence for some would-be buyers.

My Mortgage BC.com note: This could be good news for anyone looking to purchase a home in BC. Lower sales should create some buying opportunities.

Bank of Canada Lowers Interest Rates

The bank of Canada has reduced their key lending rate by ½ a percent and more cuts may be coming as Canada prepares itself for the impact of a potential US recession. The next meeting is scheduled on Apr 22, 2008. With “core” inflation running at about 1.4%, well below the 2.0% target, there was room for a “monetary stimulus” and a ½ point reduction.

This cut has is great for people that have variable rate mortgages or lines of credit because the rate is directly tied to the prime rate. We'll have to wait to see the impact the prime rate drop has on longer term fixed mortgages.

BC Property Transfer Tax Changes

Good news for BC first time home buyers BC has made some changes to the First Time Homebuyers' Property transfer Tax Exemption.

First time home buyers can now qualify for a full exemption with a purchase price of less than $425,000.00 (instead of $375,000.00). The partial exemption is now applicable when the purchase is more than $425,000.00 but less than $450,000.00.

Further, buyers can now finance any proportion of the purchase they wish without losing the exemption! This is really significant because it now allows buyers who cannot qualify for a mortgage without providing a 35% down payment, the opportunity to qualify for the exemption.

If you want more details, you can check out this BC Government
link:

http://www.sbr.gov.bc.ca/documents_library/bulletins/PTT_004.pdf

My Mortgage BC.com is a mortgage broker specializing in helping first time home buyers enter the housing market.

Canadian Mortgage Rate Update Feb 6, 2008

Thanks to all of the visiters to my blog.

Canadian Mortgage Rate Update Feb 6, 2008

Bank of Canada lowered the Prime Rate and the lenders have follower on their variable produccts but have been slow to move their fixed rates down.. Expect rates to drop further in the next few months.

The Bank Prime Rate is currently 5.75%.

Best Fixed Mortgage Rates:

1 Year Fixed 5.95%
2 Year Fixed 6.05%
3 Year Fixed 6.05%
4 Year Fixed 5.05%
5 Year Fixed 5.84%**
7 Year Fixed 6.20%
10 Year Fixed 6.25%

5 Year Rate Special 5.74% ** Must close before Feb 28th, 2007.

Best variable rate is Prime -.60% or 5.15%

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.

RBC study: homes will be more affordable in 2008

If the Royal Bank. is correct, this could be great news for anyone entering the housing market

Buying a house will become easier and more affordable in 2008, according to a Royal Bank of Canada report released Thursday.

Canadians in the market for a new home will likely be helped by dropping interest rates, say RBC economists. Just this week, the Bank of Canada cut its key rate by one-quarter of a percentage point Tuesday.

Derek Holt, assistant chief economist at RBC, says he expects consumers will benefit as longer-term mortgage rates come down. He added that central banks will probably lower interest rates further -- perhaps by a full percentage point -- and that should make short-term mortgages more affordable.

Potential homebuyers will also be helped by a slowing in the appreciation rate of the resale value of homes. The RBC report notes that home ownership costs -- which last year climbed steadily -- will probably be one of the biggest factors making homes easier to buy in 2008.

"Almost every house class in every province and major city saw affordability deteriorate last year," said Holt.

"Unlike the late 1980s and early 1990s when both unemployment rates and interest rates pushed into double digits and led to declining affordability, the prime culprit this time around has been a long string of house price gains that have outstripped income gains."

In late 2007, B.C. homebuyers were hardest hit as housing affordability "deteriorated to its worst level since 1985." The report states that the province should see "modest improvements in 2008."

The study notes that Alberta's red-hot housing market will also likely cool due to "a softer influx of migrants," making homes easier to buy for homebuyers who were priced out of the market last year. In Ontario, toughening economic conditions are expected to slow income growth and so will moderate housing price gains.

The RBC report predicts that Canada's overall resale house price appreciation is likely to slow to between five and seven per cent this year.

Expect Another Rate Cut In March Say The Economists

Good news for anyone needing a mortgage in the upcoming months. Canadian economists expect another 1/4% rate cut by the Bank of Canada in March.

Because of the slowdown of the US economy and the impact that has here in Canada most economists agree that in order to keep our economy stimulated the Bank of Canada will be lowering rates.

JP Morgan Chief Canadian Economist Ted Carmichael said he expects the Bank of Canada to lower its key rate by 50 basis points at each of its next two monetary policy-setting dates.

"We believe that by the next meeting, data on the U.S. economy will provide a smoking gun, showing clear signs of a sharp economic slowdown," Beata Caranci, director of economic forecasting at TD Bank, said.

"Given that economic and financial market conditions will probably continue to deteriorate between now and the next policy announcement on March 4, you can't rule out an eventual 50-pointer," Michael Gregory, senior economist at BMO Capital Markets, said.

Bank of Canada cuts rates by 25 basis points

Bank of Canada has cut it's overnight rate by 1/4 percent. We will have to see if the Canadian Banks respond and start lowering their fixed term mortgage lending rates. The Bank of Canada also indicated that we can expect further rate cuts to help deal with the drastic slowdown in the US economy.

For those interested the Bank of Canada will be publishing their full analysis on Thursday.

The Globe and Mail has what I feel is the best report on this rate decrease.

Canadian Mortgage Rate Update Jan 10, 2008

Canadian Mortgage Rate Update Jan 10, 2008

It will be interesting to see what the Bank of Canada decides to do with interest rates in the upcoming months. The Cheif Economist from Merrill Lynch has said that he expects the Bank of Canada to drop interest rates as much as 150 basis points. I find that hard to believe with the way the Canadian Economy has been going.

The Bank Prime Rate is currently 6.00%.

Best Fixed Mortgage Rates:

1 Year Fixed 6.00%
2 Year Fixed 6.10%
3 Year Fixed 6.10%
4 Year Fixed 5.95%
5 Year Fixed 5.99%
7 Year Fixed 6.25%
10 Year Fixed 6.30%

Best Variable Rate Mortgage:

Best variable rate is Prime -.60% or 5.40%

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.

Top 2 Changes in the Mortgage Market For 2007

Looking back on 2007 there were a couple of significant changes to help people that want to either enter the housing market or build their portfolio of rental houses. In my opinion these were the top 2 changes in the Canadian mortgage market:

1. Down payment requirements being lowered from 25% down to 20% down.
   
2. 100% financing for rental units.

The reduced down payment requirements was a change in the long standing Bank Act which greatly reduces the insurance premiums people must pay to CMHC or Genworth. With housing prices increasing the way that they have over the last 30 years it's a change that only makes sense.