Bonds remained relatively steady this week with no  major changes to interest rates.

We have seen a slight tweaking of fixed funds for high ratio or quick closings, offering a 5 year fixed at 2.99%.
Regular 5 year money is currently in the 3.09% – 3.19% range. We still have one lender, both conventional and high ratio, offering 10 year funds at 3.89%.             

If you have a variable rate of any more than prime +.75 or a fixed rate of 4.0% or more, we should explore the merits of refinancing to a lower rate.

Contact us for a free, no obligation review. Spending a few minutes could save you thousands of dollars.

Bank prime is 3.00%

The next meeting of the Bank of Canada is on October 23rd, 2012.

-Cory

P.S. If you, your family, or co-workers require guidance on current market trends, please call us, we are always available to help.

Bonds remained relatively steady the past week with only slight upward pressure. No changes expected in interest rates at this time.

Five year money is currently in the 3.09% – 3.19% range. We still have one one lender, both conventional and high ratio, offering 10 year funds at 3.89%.

Over the past week we have started to receive notices from our lending partners on implementation of the new OFSI mortgage rules.

If you have a variable rate of any more than prime +.75 or a fixed rate of 4.0% or more, we should explore the merits of refinancing to a lower rate.

Contact us for a free, no obligation review. Spending a few minutes could save you thousands of dollars.

Bank prime is 3.00%. The next meeting of the Bank of Canada is on October 23rd, 2012.

If you, your family, or co-workers require guidance on current market trends, please call us, we are always available to help.

-Cory (Mortgage Advisor at Neighbourhood DLC) 705-794-1283

Risks with the Rent to Own Program ( Feb 1st, 2013 )

Think twice before considering the Rent to Own Program…Good article from CBC News articulating the risks involved in Rent to Own programs.  http://www.cbc.ca/news/canada/manitoba/story/2012/09/10/mb-rent-to-own-housing-winnipeg.html

These new rules have been approved and are now in the process of being implemented by all Federally Regulated Financial Institutions (FRFIs) across Canada. They have to be in place by each lender’s year end (by December 31st, 2012 at the latest).

Some banks are now changing the maximum loan to values from 80% to 65% on their home equity line of credit (HELOC) and re-advance able mortgage lending limits.

To date, we have not seen the Canadian press write about these changes.

We have spoken to several major lenders (off the record) to confirm we understand what this means for Canadian borrowers.

Following is a summary of these changes:

*Home equity lines of credit (HELOCs) and re-advance able mortgage products will be limited to 65% of a home’s value (currently available up to 80%).
*No money down” and “cash-back” mortgage programs may disappear. This will mainly impact first-time buyers.
*Non-conforming loans will have a maximum 65% loan to value (LTV) with more awareness and documentation surrounding acceptable income.
*Use of the MQR (Mortgage Qualifying Rate) on all conventional mortgages with terms below five years. As an example, this means using a 5.2% rate rather than a 3.3% rate for qualification on all variable-rate and fixed-rate mortgages with terms under five years.
*Less reliance on automatic appraisals and more use of onsite inspections.
*Existing mortgages and lines of credit will be grandfathered in.

Self-employed borrowers and customers with challenging credit may be limited to financing at 65% loan to value. Private financing will always be an option

There will be more documentation required and questions being asked by all lenders, especially in the “B” area around income. This translates into a greater importance for the collection of all supporting documentation up front.

With changes such as these, it makes it even more important that our clients are well informed. Working with full-time, trusted, seasoned professionals who have access to an array of lenders will be more important than ever moving forward.

Let me know if you have any questions.
-Cory