Ariana Leroux Mortgage Blog

  From TMG, mortgage blog... Thurs Sept 13th, 2012 Is household debt a threat to our economy? Here are the facts: Canadian household debt is indeed equal to 154% of disposable income  The housing market is softening and prices are going down in many areas of the country Canadians will be impacted by higher interest rates Even given these facts; it’s unlikely that Canada will experience a financial crisis. Household debt has been increasing steadily over that past 30 years as interest rates continue to decline but, for the most part, Canadians gear their borrowing to what they can afford.  Jobs are holding steady and business is confident about future prospects. So, lower interest rates mean less money goes to servicing debts. In accumulating debt, Canadians also have a large asset, namely their homes. And although some in the financial community are concerned about the massive debt, Eric Lascelles, chief economist at RBC Global Asset Management...

                                                          SUMMER Rate Update!  Build Rates 5 Year Fixed              3.99% (9 Months)    4.24% (12 Months) 5 Year Variable          Prime  (9 Months)    Prime  (12 Months) Still have the 2.99% 5 year fixed rate (insured). Mortgage must close withing 45 days, not available for pre approvals. 3.19% for 120 day rate hold, 5 year term! 2.49%    1 Year Rate 2.59%    2 Year Rate 2.69%    3  Year Rate 3.09%    4  Year Rate 3.69%    7  Ye...

Taken from the TMG Mortgage BLOG... Friday, August 03, 2012 What can we make of the low interest rate environment we are now seeing? Fixed rates are dropping and one lender has dropped its variable rate. Will more lenders follow suit? When the five-year fixed rate fell to under 3% earlier this year, Finance Minister Jim Flaherty and Bank of Canada Governor Mark Carney cautioned consumers and warned lenders to be careful with debt loads. Clearly it didn’t slow the robust housing market – purchases and refinances continued at a pace not seen since 2007. Then Flaherty announced some changes to the mortgage rules to slow down the pace of rising debts. So what happened? We had a couple of weeks of quiet as the summer was also upon us. It appears both lenders and investors are not comfortable with a lull. They have been taking advantage of lower bond yields, which accounts for lowered fixed rates. Even the seven and 10-year rates ar...

From The Mortgage Group Mortgage Blog Tuesday, July 03, 2012 By Mark Kerzner, President, TMG The Mortgage Group Canada Inc. When I worked as a lender we saw a lot of Adjustable Rate Mortgages (ARMs) - variable rate transactions. From the early-to-mid-2000s that product seemed to be the mortgage product of choice by the brokers we worked with. Many brokers devised strategies to demonstrate how the ARM was more advantageous to the homeowner than a standard fixed rate mortgage. The "pitch" ranged from paying less interest, to having lower payments, to aggressive principal reduction, and so on. With the benefit of hindsight, for those consumers who chose variable rate products throughout the last decade, they have, for the most part, come out well ahead. With fixed interest rates continuing to hover at historical lows (5-year fixed rates are approximately 3.09% to 3.29% at the time of this writing) and the small spread between discounted ARMs and fixed r...

So this link below is interesting, as well as the 1st comment. However as my clients know I do put them first, and not just stating it as a "...walk on water" comment; I did however love the quotes in the comment section. Back to the point... which is why I would be asking "why they want or prefer a short term mortgage" to see if it is just rate based or if they truly need the rate/mortgage for short term. The RMG Mortgages 2.59% for the 2 year is awesome for short term buyers, with full pre payment options, portability, quick turn around - client is still #1. AND with rates going to go on the rise (as that is what history shows) client takes advantage of the bit longer rate if their "short" term goes a bit longer than expected. Which most times is the case. MCAP however has an A1 10 year program as well! with full options on it as well, for those that want AAA rates and want the security longer. Really at the end of the day, a good Mortgage Broker/Agent...

New SUMMER RATES!!! Click to Check it OUT!

Tuesday, July 17, 2012 The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent. Global growth prospects have weakened since the Bank's April Monetary Policy Report (MPR). While the economic expansion in the United States continues at a gradual but somewhat slower pace, developments in Europe point to a renewed contraction. In China and other emerging economies, the deceleration in growth has been greater than anticipated, reflecting past policy tightening and weaker external demand. This slowdown in global activity has led to a sizeable reduction in commodity prices, although they remain elevated. The combination of increasing global excess capacity over the projection horizon and reduced commodity prices is expected to moderate global inflationary pressures. Global financial conditions have also deteriorated since April, with periods of consider...