Tag Archives: 2012

Happy Holidays!

December 24, 2012

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Just a quick post to wish everyone that follows along with the BarrieRealEstateTalk blogHAPPY HOLIDAYS!  We’re looking forward to continuing the discussion on a variety of real estate topics in Barrie in the coming year.  If you have any topics you’d like any of us to cover – let us know by leaving a comment below!

We’re going to take a couple of weeks off (let’s be honest: there are not many real estate  transactions going on between Christmas and New Years), but we’ll be back in 2013 with some more great talk about what’s going on in Barrie in the world of real estate.

Tim

Tim is a mortgage agent in Barrie who specializes in helping first-time home buyers. He works with a variety of lenders and can help customize a mortgage with the best rates & options that fit the needs of each customer.

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Mortgage Monday Rate Update: December 2012

December 10, 2012

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While the mortgage industry slows down around Christmas, it doesn’t quite slow to a standstill.  For those that are shopping for a new house, or looking to do a refinance (or even just a simple mortgage renewal), rates and numbers are an important part of the mortgage equation. When rates change even the slightest of percentage points, it could cost or save you thousands of dollars. Every once in a while, here on the Mortgage Monday posts, I’ll update you on what’s going on in the world of mortgage rates. If this kind of stuff doesn’t really interest you, I won’t be offended if you just skim through it – I’ll try to make it as painless as possible. 😉

  • The Bank of Canada interest rate continues to hang out at 1.00%.  The next meeting is scheduled for January 23rd, 2013.
  • The Bank of Canada prime lending rate is also holding steady at 3.00%. It has also been holding steady since Fall 2010 – if the bank rate goes up, the prime lending rate will follow.  We probably won’t see this start to move up well into 2013 or even later.
  • The qualifying rate (the rate you would need to qualify at for a variable mortgage) for a 5-year mortgage is still at 5.24%.  Not many folks are getting into a variable mortgage these days (though we’re starting to see some better rates in the variable department now).
  • The current best variable rate (changes daily) is in the prime-0.35% (2.65%) ballpark, though many lenders are still currently offering ‘prime’ as their variable rate.
  • The current best 5-year fixed mortgage rate (changes daily) hasn’t really moved around much and is still in the area of 2.99%-3.09% – again, always contact your mortgage broker for current best rates for your situation (and as we’ve talked about previously, The Best Mortgage Rate is Not Always the Best Option).  Be careful when looking at some of the heavily discounted rates – many of them are considered “no-frills” mortgages and can come with restrictive options which could end up costing you $1,000’s.
  • The “hot term” in Canada these days is still the full-featured, 10-year fixed mortgage with rates as low as 3.89% (check out my post from a couple of months ago on the 10-Year Mortgage Below 4% and a more recent one: Should You Consider a 10-Year Mortgage?). If you want to lock in for a decade and record-low rates, definitely take a look at locking in for 10 years at less than 4%.  I have more clients moving into 10-year terms than any other term this month.

If you’ve been following along with my rate updates, they are probably starting to sound pretty repetative.  Very few of the numbers have changed for the past several months. While I’m happy to provide an update on what’s going on as rates, if you’re interested on getting personalized mortgage advice, speak to your favorite mortgage broker who can help you decide the best rates and options for you.

Tim

Tim is a mortgage agent in Barrie who specializes in helping first-time home buyers. He works with a variety of lenders and can help customize a mortgage with the best rates & options that fit the needs of each customer.

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CAAMP Releases Annual Consumer Survey Report

November 19, 2012

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Today, CAAMP released its fall consumer report, Annual State of the Residential Mortgage Market in Canada.

The report indicates that the majority of Canadian homeowners are still comfortable with their mortgage debt levels; however, it also identifies weaknesses in the mortgage market that could affect Canada’s economic recovery.

Here are some of the significant/interesting stats from the report:

  • Among all mortgage holders, 65% have fixed rate mortgages, 28% have variable rate mortgages and 7% have a combination. For mortgages in 2012, there has been a significant shift to fixed rate mortgages – 79% are fixed, 10% are variable and 11% are a combination of both.
  • 68% of mortgages obtained during 2012 have amortization periods of 25 years or less.
  • 32% of mortgage holders are making significant efforts to accelerate repayments, including taking one or more of the following actions in the past year:
    • 16% have voluntarily increased their monthly payments.
    • 15% have made a lump sum contribution to their mortgage.
    • 6% have increased their payment frequency.
  • For mortgages that have been repaid since the 1990s, actual repayment periods have generally been only two-thirds of the contracted periods.
  • Among borrowers who took out a new mortgage in 2012, a record 47% obtained it from a mortgage broker (Woohoo!).
  • For all current mortgages, 58% were obtained from a bank and 25% from a mortgage broker.
  • The average mortgage interest rate is 3.55%, which is lower than last year’s average of 3.92%.
  • There has been a considerable amount of locking-in (converting from variable rate to fixed rate). Among the 3.85 million Canadian homeowners with fixed rate mortgages, 13% locked in during the past 12 months.
  • Among mortgage borrowers who have renewed a mortgage this year, 61% experienced a reduction in their interest rate.
  • The average actual rate for 5-year fixed rate mortgages is 1.85 percentage points lower than typical (posted) rates in 2012.
  • The volume of outstanding residential mortgage credit is growing at a slower rate than prior to the recession. The growth rate is forecast at 6.9% for 2012, followed by 5.5% in 2013 and 4% in 2014.
  • Of the 9.7 million homeowners in Canada, 5.95 million have mortgages and 3.75 million are mortgage-free.
  • The arrears rate has fallen for 19 consecutive months and is approaching a record low of 0.25%.
  • 87% of Canadian homeowners have 25% or more home equity.
  • According to simulations, 17% of high ratio mortgages funded in 2010 could not have been funded today, including 11% of prospective high ratio homebuyers who can’t qualify for a mortgage under the new 25 year amortization rule.
  • Since the most recent round of mortgage tightening came into effect there has been a drop in Canadian housing resale activity: between August and October, sales were 8% lower than in the year prior to the announcement.

If you’re so inclined, you can read the full report here.

Tim

Tim is a mortgage agent in Barrie who specializes in helping first-time home buyers. He works with a variety of lenders and can help customize a mortgage with the best rates & options that fit the needs of each customer.

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Mortgage Monday Rate Update

November 12, 2012

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Yup, it’s time for another monthly rate update.  Whether you like it or not, stats and numbers are a part of the world of mortgages. When rates change even the slightest of percentage points, it could cost or save you thousands of dollars. Every once in a while, here on the Mortgage Monday posts, I’ll update you on what’s going on in the world of mortgage rates. If this kind of stuff doesn’t really interest you, I won’t be offended if you just skim through it – I’ll try to make it as painless as possible. 😉

  • The Bank of Canada interest rate continues to hang out at 1.00%.  The next meeting is scheduled for December 4th, 2012.
  • The Bank of Canada prime lending rate is also holding steady at 3.00%. It has also been holding steady since Fall 2010 – if the bank rate goes up, the prime lending rate will follow.  We probably won’t see this start to move up well into 2013.
  • The qualifying rate (the rate you would need to qualify at for a variable mortgage) for a 5-year mortgage is still at 5.24%.  Not many folks are getting into a variable mortgage these days (though we’re starting to see some better rates in the variable department now).
  • The current best variable rate (changes daily) is in the prime-0.35% (2.65%) ballpark, though many lenders are still currently offering ‘prime’ as their variable rate.
  • The current best 5-year fixed mortgage rate (changes daily) hasn’t really moved around much and is still in the area of 2.99%-3.09% – again, always contact your mortgage broker for current best rates for your situation (and as we’ve talked about previously, The Best Mortgage Rate is Not Always the Best Option).  Be careful when looking at some of the heavily discounted rates – many of them are considered “no-frills” mortgages and can come with restrictive options which could end up costing you $1,000’s.
  • The “hot term” in Canada these days is still the full-featured, 10-year fixed mortgage with rates as low as 3.99% (check out my post from a couple of months ago on the 10-Year Mortgage Below 4% and a more recent one: Should You Consider a 10-Year Mortgage?). If you want to lock in for a decade and record-low rates, definitely take a look at locking in for 10 years at less than 4%.

If you’ve been following along with my rate updates, they are probably starting to sound pretty repetative.  None of the numbers have changed from last month (again). While I’m happy to provide an update on what’s going on as rates, if you’re interested on getting personalized mortgage advice, speak to your favorite mortgage broker who can help you decide the best rates and options for you.

Tim

Tim is a mortgage agent in Barrie who specializes in helping first-time home buyers. He works with a variety of lenders and can help customize a mortgage with the best rates & options that fit the needs of each customer.

More Posts - Website

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Mortgage Monday Rate Update – October 2012

October 15, 2012

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I have to say, these rate updates are becoming a little dull – rates haven’t been moving around much lately, but at least they’re staying low, right?

Whether you like it or not, stats and numbers are a part of the world of mortgages. When rates change even the slightest of percentage points, it could cost or save you thousands of dollars. Every once in a while, here on the Mortgage Monday posts, I’ll update you on what’s going on in the world of mortgage rates. If this kind of stuff doesn’t really interest you, I won’t be offended if you just skim through it – I’ll try to make it as painless as possible. 😉

  • The Bank of Canada interest rate continues to hang out at 1.00%.  The next meeting is scheduled for October 23rd, 2012.
  • The Bank of Canada prime lending rate is also holding steady at 3.00%. It has also been holding steady since Fall 2010 – if the bank rate goes up, the prime lending rate will follow.  At the earliest, we’re probably looking at late 2012/early 2013.
  • The qualifying rate (the rate you would need to qualify at for a variable mortgage) for a 5-year mortgage is still at 5.24%.  Not many folks are getting into a variable mortgage these days (though we’re starting to see some better rates in the variable department now).
  • The current best variable rate (changes daily) is in the prime-0.35% (2.65%) ballpark, though many lenders are still currently offering ‘prime’ as their variable rate.
  • The current best 5-year fixed mortgage rate (changes daily) hasn’t really moved around much and is still in the area of 2.99%-3.09% – again, always contact your mortgage broker for current best rates for your situation (and as we’ve talked about previously, The Best Mortgage Rate is Not Always the Best Option).  Be careful when looking at some of the heavily discounted rates – many of them are considered “no-frills” mortgages and can come with restrictive options which could end up costing you $1,000’s.
  • The “hot term” in Canada these days is still the full-featured, 10-year fixed mortgage with rates as low as 3.99% (check out my post from a couple of months ago on the 10-Year Mortgage Below 4% and a more recent one: Should You Consider a 10-Year Mortgage?). If you want to lock in for a decade and record-low rates, definitely take a look at locking in for 10 years at less than 4%.

If you’ve been following along with my rate updates, they are probably starting to sound pretty repetative.  Essentially, none of the numbers have changed from last month (again). While I’m happy to provide an update on what’s going on as rates, if you’re interested on getting personalized mortgage advice, speak to your favorite mortgage broker who can help you decide the best rates and options for you.

Tim

Tim is a mortgage agent in Barrie who specializes in helping first-time home buyers. He works with a variety of lenders and can help customize a mortgage with the best rates & options that fit the needs of each customer.

More Posts - Website

Continue reading...