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Mark Herman – Calgary Mortgage Broker

‘Window closing’ on ultra-low mortgage rates

March 1, 2011 Canadian mortgage, real estate

Essentially we are in artificially low interest rates and the government is expecting rates to come up to normal levels in the near future. Bond yields are continuing to put pressure on long term mortgage rates and we will continue to see the rates moving upward this year. The government is also trying to make it more difficult for individuals to qualify for insured mortgages. This article, from the Financial Post, speculates rates will increase rates by May. Read More

Info your banks would prefer you didn’t know

March 1, 2011 Canadian mortgage, investment rental property

What your Bank doesn’t want you to know

Monday, 28 February 2011 22:47
A list of some pertinent information your banks would prefer you didn’t know:

  • An extensive study recently conducted by the Bank of Canada (BoC) concluded that Canadians with the best mortgage rates tend to be those who use brokers. They found that brokers significantly lower “search costs” and one average reduce rates by 17.5 basis points. That represents $1,670 worth of savings on interest on a $200,000 mortgage over 5 years.
  • In another recent study by the Bank of Canada it was found that banks are slow to pass on cuts in interest rates onto their customers and of the 6 biggest banks in Canada “five of the six largest banks adjust rates upward more quickly when there are upward cost pressures than downward when costs fall”.
  • In a report done following the announcement of the Bank of Canada’s decision to lower amortization and to limit Canadians ability to refinance Moody’s concluded that these reforms would be “credit positive for Canada’s banking system and its bondholders.” The report goes on to forewarn that these new measures will most likely see an increase in unsecured lines of credit, a facet of banking which generates higher interest rates and therefore far greater profits for the banks.
  • A warning to our customers: TD and some other banks are now offering the opportunity to register the collateral in their property for an amount of up to 125% of the approved principal amount of the mortgage. While this may seem uncharacteristic altruistic on the banks part clients should be ware that taking such an action would most likely leave you unable to refinance your mortgage or shop your mortgage around with other lenders. This gives TD and the other banks an immense advantage when it comes to negotiating a refinance.

CANADIAN HOMEOWNERSHIP COSTS EASE FOR SECOND CONSECUTIVE QUARTER: RBC ECONOMICS

February 24, 2011 Canadian mortgage, economy, investment rental property, real estate

This is great news.

TORONTO, Feb. 24 /CNW/ – Canada’s housing affordability continued to improve in the fourth quarter of 2010, thanks in part to slight decreases in five-year fixed mortgage rates and minimal home price appreciation across the country, according to the latest Housing Trends and Affordability report released today by RBC Economics Research. Read More

ORES Real Estate Index For January 2011

February 17, 2011 Canadian mortgage, economy, investment rental property, real estate

COMMENT: This is a very cool index I found that compares most investments to real estate. It is interesting right now as gold is at an all time high, oil is back up and Canadian real estate has held most of its value and is coming back.

Wednesday, 16 February 2011 10:09 Brian Madigan LL.B.

Here is the “ORES REAL ESTATE INDEX” which tracks the average resale prices of single family homes and condominiums in the Greater Toronto Area (GTA). It also tracks certain benchmark comparisons such as the price of oil and gold, as well as the Consumer Price Index. Read More

Real gross domestic product rose 0.4% in November

January 31, 2011 economy
Real gross domestic product rose 0.4% in November Is this the beginning of the recovery?

Real gross domestic product rose 0.4% in November after growing by 0.2% in October. Oil and gas extraction led the way in November, followed by wholesale and retail trade, real estate and the finance and insurance sector. Manufacturing declined, largely as a result of temporary plant shutdowns for retooling in the motor vehicle assembly industry and shift reductions in the motor vehicle parts industry. Construction also decreased. Read More