Tag Archives: 2013

Mortgage Monday Rate Update – July 2013

July 15, 2013

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We’ve been doing these Mortgage Monday Rate Updates for going on two years now, and haven’t had much movement the entire time… but finally, there’s actually some movement to report. 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.

  • The Bank of Canada interest rate continues to be stuck at 1.00%.  The next meeting is in a couple of days, but indications are it will continue to stay where it is for a while yet.
  • 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 until late 2013 or even 2014.
  • The qualifying rate (the rate you would need to qualify at for a variable mortgage) for a 5-year mortgage is still 5.14%. With fixed rates starting to rise again, Canadians may again look to the variable rate mortgage for long-term savings.
  • The current best variable rate (can change on a daily basis) is still in the prime-0.40% (2.60%) ballpark, though many lenders are currently offering in and around ‘prime’ as their variable rate.
  • The current best 5-year fixed mortgage rate (this can change daily) has started to creep upwards over the past month and is now in the 3.29%-3.59% range (for a full-featured mortgage, and closer to 3% for a limited, no-frills mortgage), depending on qualifications and options. Again, always contact your mortgage broker for current best rates and options for your situation (and as we’ve talked about previously, The Best Mortgage Rate is Not Always the Best Option).
  • While the “hot term” in Canada these days may be moving away from the 10-year and back toward the more common 5-year term, the full-featured 10-year fixed mortgage continues to be popular with rates continuing to stay below 4% (check out my posts from last year on the 10-Year Mortgage Below 4% and Should You Consider a 10-Year Mortgage?).  Based on the history of lending rates, locking in for 10 years at below 4%, or 5 years for around 3% is nothing short of fantastic.

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 favourite 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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2013 Mortgages: A Canadian Market Overview [Infographic]

June 10, 2013

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I came across this fantastic infographic and thought I would share it with you (with permission, of course). It looks specifically at the 2013 Canadian housing/mortgage market.

2013 Mortgages: A Canadian Market Overview [Infographic]

Anything of those facts surprise you? Do you know where you fall in some of those stats?

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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May 2013 Changes in the Canadian Mortgage Market

May 27, 2013

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Last week, CAAMP released its spring consumer report, Change in the Canadian Mortgage Market. A copy of the full report is available to download here, but for those that don’t feel like reading that whole report, here are some of the significant stats from the report:

  • Overall housing starts are projected to decline from 205,000 in 2011 to 150,000 by 2014. In total, the housing starts downturn will reduce related employment by 80,000 jobs.
  • For mortgages repaid during the past two decades, actual repayment has been two-thirds of the contracted period.
  • 8% of home owners took out equity on their home last year. The average equity takeout was $48,000, with the primary purpose being for renovations/home repairs.
  • 83% of home owners in Canada have at least 25% equity in their home.
  • Overall, 69% of mortgage holders have fixed rate mortgages. For those taken out in the last 12 months, the figure rises to 85%.
  • The average mortgage rate is 3.52%. For those renewed in the past 12 months the average rate is 3.15%.
  • For the past 12 months the actual average rate for a 5-year fixed-rate mortgage has been 2.20% below the posted rate.
  • 60% of Canadians have two or more credit cards, including 30% who have three or more. The average outstanding balance is $3,500.
  • Mortgage credit growth is slowing dramatically. For 2014, it is forecasted to be 2.5% to 3%, or roughly half the current rate.
  • Mortgage brokers continue to account for 25% of all mortgages. For new mortgages in the last 12 months, that total rises to 31%.
  • 18% of mortgage holders, or about 1.1 million, voluntarily increased their mortgage payments, while a further 16%, or about 975,000, made a lump sum payment during the last year.

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 – February 2013

February 11, 2013

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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 be stuck at 1.00%.  The next meeting is scheduled for March 6th, 2013, but forecasters are now predicting this will stay at 1% for the foreseeable future.
  • 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 2014.
  • 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% (its been holding steady there since June 2012), though ot many folks are getting into a variable mortgage these days with fixed rates being so low.
  • The current best variable rate (can change on a daily basis) 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%, though it looks like rates are starting to move a little higher.  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 continues to be full-featured, 10-year fixed mortgage with rates as low as 3.79% (check out my posts from last year on the 10-Year Mortgage Below 4% and 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 had more clients moving into 10-year terms than any other term in the last quater of 2012.

If you’ve been following along with my rate updates, they have been very repetitive for the past 6-8 months – very few of the numbers have changed since mid-2012. 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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Mortgage Monday Rate Update – January 2013

January 14, 2013

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Welcome back to BarrieRealEstateTalk! Cesia and I are looking forward to bringing you more great posts on real estate in the Barrie area.  If you’re a real estate professional in the Barrie area and you’re interested in doing some guests posts on BarrieRealEstateTalk.ca, send me an email – we’d love to have more contributors!

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 (can change on a daily basis) 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%, though it looks like rates are starting to move a little higher.  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 continues to be full-featured, 10-year fixed mortgage with rates as low as 3.89% (check out my posts from last year on the 10-Year Mortgage Below 4% and 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 had more clients moving into 10-year terms than any other term in the last quater of 2012.

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.

More Posts - Website

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