Which is better for you - Fixed versus variable rate mortgages?

The graph below shows the fixed versus variable rate differences for the past 25 years. You will note that the variable rate is often lower than the fixed rate. This implies that in the long run, you may be better off going with a variable rate mortgage as opposed to a fixed rate mortgage.

I've written about the benefits and risk associated with this decision on my website: http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

September 09 has been kind to most....a welcome relief from last year's fears. Thankfully - the financial markets are improving and confidence is growing.

Mortgage interest rates are low, lenders are competing for business, and we've seen slight decreases in both fixed and variable rates.

I am often asked for historical mortgage interest rate data. The graph below is for data from January 1985 for both fixed and variable rates.

In reviewing the graph you will immediately see how expensive rates were back in the mid 80's compared to today

It's great to be able to obtain the current rates.

Please let me know if you have any other questions or if there is anything else I can help you with.

Thank you again for contacting me and I will do my best to help you with your real estate needs,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up


• See seasonal housing patterns


• Would you like me to send you a 2009 Calendar?

Current GTA and Mississauga Mortgage Interest Rates

These are the posted and obtainable mortgage interest rates in the GTA and Mississauga areas

TERM	POSTED	OUR RATES*
6 Month	4.6%	3.45%
1 Year	3.75%	2.53%
2 Year	3.9%	2.85%
3 Year	4.45%	3.27%
4 Year	4.94%	3.54%
5 Year	5.55%	3.84%
7 Year	6.6%	5.1%
10 Year	6.7%	5.2%
Variable Rate		2.35%
Prime Rate		2.25%

* Rates may vary and are subject to change without notice.
Rates Last Updated: Thursday, September 24, 2009

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

REMAX reports that Canadian housing markets are back!

This is the most recent report from RE/MAX about the Canadian Housing Market

Canadian housing markets buck recession and trend upwards, says RE/MAX

Mississauga, Ontario (September 24, 2009) - With the worst of the recession over, residential real estate markets in major Canadian centres are poised for growth in the final quarter of 2009, according to a report released today by RE/MAX.

The RE/MAX Bricks and Mortar Report found the bounce back that began in early Spring has made this recession one of the shortest on record for real estate. Low interest rates, pent-up demand, and improved affordability levels have all played a role in the recovery now well-underway. Percentage increases in sales from January to August 2009 were led by Vancouver, (up a substantial 14 per cent to 23,158), Victoria (up 7.4 per cent to 5,266), Edmonton (up 6.2 per cent to 13,691), Regina (up five per cent to 2,597), Ottawa (up 2.4 per cent to 10,830) and Toronto (up 1.8 per cent to 58,421). Housing values are already ahead of record-breaking 2008 levels in seven of the 11 markets surveyed, including Newfoundland-Labrador (18.1 per cent year to $203,584), Regina (6.4 per cent to $244,088), Halifax-Dartmouth (3.5 per cent to $239,633), Winnipeg (3.5 per cent to $207,006), Ottawa (3.3 per cent to $301,684), and Toronto (up 0.3 per cent to $385,978). Nationally, average price hovers at $312,585, up 0.5 per cent over one year ago.

"Markets are heating up across the country," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "Purchasers are clearly taking advantage of affordable prices and rock bottom interest rates. Those who missed the boat in years past have found that sitting on the sidelines can be a costly move. Prices are on the upswing and inventory levels are tightening, so the push toward homeownership is expected to continue throughout the Fall and possibly into early 2010."

This is the most recent report from RE/MAX about the Canadian Housing Market

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

How important is price when it comes to selling real estate in Mississauga?

This is provided from a newsletter I just received, enjoy! Mark

REAL ESTATE NEWSLETTER
October 2009

How Important Is PRICE?
Most of us instinctively know that price is important. It’s important in every kind of market, but it gets more important as market activity slows.

In the current market, it’s almost impossible to exaggerate the importance of price from the prospective of buyers and sellers.

Buyers who successfully buy make offers that are at or near market price. Sellers who successfully sell price their properties at or near market price. Simple?

You’d think so. But there are so many would-be buyers out there who are trying to “steal” properties for way less than they’re worth (yes, even in this market). There are also a good many sellers who are still overpricing homes they’re futilely wishing they could sell (yes, even in this market).

There are also buyers who are getting good deals and sellers who are making reasonable sales. Their secret?

SUCCESS SECRET

Successful buyers and sellers make it a point to KNOW what market price is for the property they’re seeking to buy or sell. There are many ways to do this. Each involves work and/or money.

You can check with your agent or the public records for what SIMILAR homes nearby have actually SOLD for RECENTLY. Make adjustments for any obvious differences such as lot size, curb appeal, condition, etc.

You can pay an appraiser to do this for you. In my neck of the woods, one would expect to pay about $350 for an appraisal. It might be more or less in your area.

There are also home value report services on the internet. We have a link to one on our site. Some of them are very good, especially if you have enough knowledge to interpret them (ignore homes nearby that are included, but aren’t really comparable, for example). Some of these services are free. The better ones tend to charge for their reports.

There is also a service that’s probably available that buyers and sellers don’t typically use. What am I talking about?

Experienced real estate agents are very good at doing a “market analysis” and coming up with a market price using data available to them through their local, realtor multiple listing service. They typically provide this service without a separate charge to their listing and buying clients.

Bankers who don’t necessarily want to pay the full price to have an appraisal done will often offer to pay a real estate agent a smaller fee to do a market analysis on a property and provide an “opinion letter” as to the current market value of the property. Experienced agents are often very good at this, so the bank saves money, and the agent has an additional source of income.

I think buyers and sellers could probably make similar arrangements with real estate agents. The cost could be expected to be less than the cost of a full blown appraisal which is particularly important when one considers the fact that possible changes in value should be evaluated at least every six weeks under current market conditions.

If I were a buyer or seller approaching an agent, I’d tell them this frankly when I asked for their help. If I were a seller, I’d probably “sweeten the pot,” and incidentally broaden my marketing options by telling them I’d also be willing to pay them the listor’s typical commission (about half the going rate) if they brought me a buyer for my property.

No matter what approach one uses, successful buyers and sellers begin with and maintain a good knowledge about the market value of the property which is the subject of their interest.

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Mississauga Real Estate Mortgage Interest Rates

These are the current posted and spot rates for mortgages that are currently available.

TERM	POSTED	OUR RATES*
6 Month	4.60%	3.75%
1 Year	3.75%	2.53%
2 Year	3.90%	2.85%
3 Year	4.45%	3.27%
4 Year	4.94%	3.54%
5 Year	5.55%	3.84%
7 Year	6.60%	5.10%
10 Year	6.70%	5.20%
Variable Rate		2.35%
Prime Rate		2.25%

* Rates may vary and are subject to change without notice OAC.
Rates Last Updated: September 21, 2009

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Do you think we should purchase our home now or wait for the real estate market to stop fluctuating?

This is a question that many ask in today's market, Should I Purchase My Home Now or Wait for the Market to Stabilize?


This is an important question that is difficult to answer but the following will give you an idea of what to do from once perspective


Many people are debating whether they want to buy a property now or whether they should wait. They are getting mixed messages from the media about the market conditions and the state of the economy. Reports are indicating that the real estate market is rebounding. However, we are still hearing negative news about businesses folding and job losses. So is now a good time to buy?

On the other hand, there is still the question whether housing market prices will hold or drop further. Potential buyers are wary about taking on such a huge borrowing to find that the dream house they have just bought may be worth appreciatively less in six months’ time.

The decision whether to buy a home now or wait is very tricky at the moment. On the one hand you have very low mortgage rates as the Bank of Canada had cut the interest rate several times in the last few months to try and get the banks lending again. Deals as low as 2.75% are being advertised to entice new customers into the market and get the chain moving again. Also, property prices have dropped in the last year and there are many good deals to be made.

House prices are cyclical. A low market is always a good time to buy even though it may be several years before the market rebounds. The property market will rebound. If you are in a position to buy a house and can afford the repayments, buy now. Waiting to buy could result in paying much higher prices in a rising market.

Are you really ready?
It is also important to consider how long you will be in the home that you are about to purchase. Once you buy the home, it may be very difficult to resell right now. If the market continues to drop and you end up moving and selling in a year, you may have been wiser to wait a bit longer. So that is something that you want to make sure that you consider when making the decision to purchase a home.

Another thing that you need to think about is if you can afford the home that you are considering buying. While prices have dropped recently, you want to make sure that you find a home that is going to fit your budget. As a precautionary measure you should also budget for the fact that the cost of living might rise even further, and that being able to afford these increases will be important.

Of course, if you have a long-term plan to be in the home, the fluctuations and potential decrease in value in the near term doesn’t need to get you down, as the only price that matters is the price you are able to sell for when you need or want to move.

If you have the funds available for a down payment and you are eligible for a mortgage, and feel comfortable about your job security, and currently meeting the rising costs of living fairly easily; then the time is probably right for purchasing property. It is still a buyer’s market, so find your dream home, negotiate your best deal and jump in. Buying property now is one of the best times in the last hundred years to get a bargain.

I hope this finds you happy and healthy!

Mark

New mortgage interest rate promotion P-0.05%

I just received an email from a mortgage broker I know who has a great promotion on rates.

It's for the 4-year variable @ Prime -0.05% (2.20%) or Prime-0.20% first year and Prime for the next 3 years.

The sale must be closed within 45 days.

Great fixed rate option is: 3-year fixed @3.39%.

Please let me know if you are interested and I will put you in contact with this mortgage broker.

Thank you,
Mark

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Does GST apply with the sale of a Power of Sale Property?

I received the following question about GST and POS properties

Hi Mark,
I cam across your website with information about Power of Sale homes.
I was wondering if GST gets charged on a house that is listed as power of sale if it is a resale home (not from the builder).
Thanks!

S.

Hello S,

Thank you for your real estate inquiry. Generally, no GST is applicable. If the owner of the house selling under POS has performed extensive renovations and alterations, GST may apply, otherwise in 99% of the cases it does not apply

Please let me know if you have any other questions or if there is anything else I can help you with.

Thank you again for contacting me and I will do my best to help you with your real estate needs,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Current mortgage interest rates in Toronto area plus incentives offered by CMHC

These are the current mortgage rates in the GTA and some incentives offered by CMHC

Here are some of our current promotions and rate sheet:

CIBC's up to 7% Cashback: can be use as a down payment up to 100% financing.
CIBC $500 Cashback for First time home buyer

And more...

Rate sheet:
Variable closed 2.35% prime + .10%
Fixed:
1 Year/ 2.70%
2 Year/ 3.60%
3 Year/ 3.70%
4 Year/ 3.69%
5 Year/ 3.84%

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

20 Offers on a property in Mississauga - September Toronto and Mississauga Real Estate News

September News: Greetings from Fabulous Mississauga!

If there is any doubt whether real estate prices are rising, you don't have to look far to find evidence of this fact. Over the long weekend a semi detached property in Mississauga that was listed for $369,900 had 20 offers on it and it sold for $401,000! Sounds more like Toronto than Mississauga :-))

The statistics for last month are out and average GTA sale price and volumes are at or near all time highs, see this page for latest market stats and results from this record month

Mortgage interest rates have fallen slightly or have been stable over the past month or so, even though the bank rate has remained steady.

Any way you look at it, interest rates are at or near all time lows with bank prime at 2.25% , read more.

Our market continues to do very well, prices are up and so are sales volumes.

My observations for the Mississauga marketplace is that we continue to see that prices continue to be strong and rising in many areas. Moderately of course, but still, they are rising.

It will be interesting to see what the next quarter brings as the fall market is typically a strong period in our market.

You are reading the latest newsletter

September Report

September Resale Housing Results Brings More Positive News

GTA REALTORS® report high sales volumes last month

TORONTO, September 2, 2009 -

In August 2009, Greater Toronto REALTORS® reported 8,035 sales, up 27% per cent from August 2008. The average price for August transactions was $387,921 – up by six per cent compared to the same month last year.

"The increase in demand for existing homes has been widespread across different housing types and price ranges," said TREB President Tom Lebour. "This suggests many categories of home buyers have chosen to make a long-term investment in housing, from first-time buyers to move-up buyers or buyers who are seeking a lifestyle change."

Year-to-date sales, at 58,421 were up two per cent compared to the first eight months of 2008.

Average price, at $385,978 was up by less than one-half of one per cent.

"We have heard more positive economic news lately. The improved housing market has played a key role,” explained Jason Mercer, TREB's Senior Manager of Market Analysis. "Home sales have helped other sectors of the economy through home buyers’ spending on things like financial and legal services, moving, renovations and home furnishings."

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

August Residential Real Estate Resale Market Figures show strength

The statistics are out for August and it was another very good month for real estate in the Toronto and GTA

GTA REALTORS® Report August Resale Market Figures

TORONTO, September 2, 2009

- In August 2009, Greater Toronto REALTORS® reported 8,035 sales, up 27% per cent from August 2008. The average price for August transactions was $387,921 – up by six per cent compared to the same month last year.

"The increase in demand for existing homes has been widespread across different housing types and price ranges," said TREB President Tom Lebour. "This suggests many categories of home buyers have chosen to make a long-term investment in housing, from first-time buyers to move-up buyers or buyers who are seeking a lifestyle change."

Year-to-date sales, at 58,421 were up two per cent compared to the first eight months of 2008.

Average price, at $385,978 was up by less than one-half of one per cent.

"We have heard more positive economic news lately. The improved housing market has played a key role," explained Jason Mercer, TREB's Senior Manager of Market Analysis. "Home sales have helped other sectors of the economy through home buyers’ spending on things like financial and legal services, moving, renovations and home furnishings."

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Mortgage interest rates continue to decline

Good afternoon,

With the GTA real estate market as hot as it is, it is hard to imagine mortgage rates dropping, yet they have been slowly moving back downward since the spike we saw in the springtime. The regular 5 year fixed rate has now reached 4.19%

We can now find 5 year rate special s available for 3.99% for any of your mortgages closing by October 30th.

The 5 year variable rate has now dropped to prime +0.20%. (4.45%).


So how far will the rates continue to drop? That still remains to be seen. It really is hard to imagine them dropping much further with the market where it is and with the economy now starting to show signs of improvement.

While I don't think rates are going to start skyrocketing any time soon, we need to continue using the low rates we are experiencing to continue fueling the real estate frenzy we are now experiencing.


Today's lowest rates:


1 year fixed 2.55%
2 year fixed 3.05%
3 year fixed 3.39%
4 year fixed 3.85%
5 year fixed 3.99%


5 year variable 2.45% (prime +0.2)


Quote of the week: "The person who gets the farthest is generally the one who is willing to do and dare. The sure-thing boat never gets far from shore" Dale Carnegie

All the Best!
Mark