article and featued rates Feb 3, 2012

Industry Breaking News:
-
Bank
of Canada Governor Mark Carney is getting more worried about record levels of
household debt The debt-to-income ratio rose to a record 153 per cent in the
third quarter
-
Finance Minister Jim Flaherty
the concern of Canada's top banking regulator that lenders are loosening their
mortgage standards too much, but said any problems in the system are being
corrected.
Read the
complete articles in my blog at: http://OnlineMortgageNews.BlogSpot.com/
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Canada
Mortgage and Housing Corporation (CMHC) has committed to back $541 billion in
mortgages — within striking distance of the agency's $600-billion limit.
The limit was at $450 billion as recently as 2008, but Ottawa moved to raise it
as a result of the financial crisis.
-
Some banks started to remove their CMHC backed
mortgages from Conventional (Un-Insured) Mortgages.
-
Firstline Mortgages (a branch
of CIBC) removed the following programs: New Immigrant programs, non-Immigrant
programs, equity programs (flex), Access low-doc programs, CMHC self-employed
simplified program, Genworth Alt-A program, Canada Guaranty low-doc programs,
Canada Guaranty Lifestyle Advantage and self-employed program. These programs
were stated income/equity programs.
-
Following
the changes we expect more banks have changed their products and adjusted.
Fix Rates: The banks started lowering the fix rates. The index is
usually 5 years fix rate which is around 3% now in most banks. The lower terms
than 5 years offered less than 3%. The 3 and 4 year terns are very attractive and
if you qualify those could be good options.
The low fix rate is as a result of The 5 year bond yield
which is about 1.27%.
Variable Rates: The best variable
rates in Market is about Prime - .2%. As of last week Bank of Canada announced
their overnight rate at 1%, this will result in the lending rate of banks or
Prime to stay at 3%.
Purchase: The fix rates are historically low in Canada. The spring
market is bringing more inventory and the market is balance. Considering the
lowest difference between fix and variable which is less than .5% the fix is
recommended.
Refinance: If you
have a higher fix rate, would be good idea to refinance to lower rate.
Meanwhile if you have other debts you can consolidate your debt to your low
interest rate mortgage.
Mortgage Penalty:
If your penalty is a concern for you
contact me to offer you the cash back to cover your penalty for your purchase.
This is a great product now to help you not only decrease your rate but also
consolidate your debts. The penalty is covered. YES at no charge to you! Contact me for a free consultation and analyzing
your current mortgage. My advice and mortgage solutions saves you thousands of
dollars!