You can save money when comparing the 1 year and 5 year mortgage interest rates

Hello from Fabulous Mississauga!

Interest rates are always on people's minds.

See the graph and read more online at this page

A very interesting relationship is between the 1 year and 5 year mortgage interest rates compared over time. 

People often ask me if they should choose the short term rates or lock in for the long term rates with their mortgage. 

The answer is not simple and often depends upon your personal situation and your risk tolerance, read more about locking in your mortgage for the long or short term. 

The graph below shows you the difference between the 1 year rate and the 5 year rate. The wider the gap, the more opportunity for you to save money by having a short term mortgage.  This may give you some insight into what you may wish to do by comparing the difference between the short and long term rates over the past decade or so and how the difference fluctuates.

See the graph and read more online at this page

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829  CELL 416-520-1577
mark@mississauga4sale.com

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Bank of Canada Leaves interest rate at 0.5%

The Bank of Canada announced on April 13 2016 that they would be leaving the overnight lending rate at 0.5%

This means that consumer lending rates should remain the same.

The bank prime rate that banks charge to the consumer remains at 2.70%

Read more about definition of rates

Below is, in part, what the Bank of Canada Announced on Wednesday April 13 2016:

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.

Growth in the global economy is expected to strengthen gradually from about 3 per cent in 2016 to 3 1/2 per cent in 2017-18, a weaker outlook than the Bank had projected in its January Monetary Policy Report (MPR). After a slow start to 2016, the US economy is expected to regain momentum, but with a lower profile and a composition that is less favourable for Canadian exports. Financial conditions have improved, partly in response to expectations of more accommodative monetary policy in some major economies.

Prices of oil and other commodities are off their earlier lows and slightly above levels assumed by the Bank in January, but remain well below historical averages. Nonetheless, the Bank expects deeper cuts to investment in Canada’s energy sector than were forecast in January. Meanwhile, the Canadian dollar has firmed, reflecting shifting expectations for monetary policy in Canada and the United States, as well as recent increases in commodity prices.

The Canadian economy’s complex structural adjustment to the oil price shock is ongoing and will dampen growth throughout the Bank’s projection horizon. First-quarter GDP growth appears to have been unexpectedly strong, but some of that strength is due to temporary factors and is likely to reverse in the second quarter. Still, it does appear that the positive forces at work in the economy are starting to outweigh those that are negative. Non-resource exports are expected to strengthen, but their profile is weaker than previously projected, in part because of slower foreign demand growth and the higher Canadian dollar. The economy continues to create net new employment, especially in services, despite job losses in resource-intensive regions. In this context, household spending continues to expand moderately. While business investment is still shrinking due to sizeable declines in the energy sector, it is expected to turn positive later this year. The complex adjustment figures importantly in the Bank’s annual review of the economy’s potential, which has resulted in a lower estimated range for potential output growth.

Read full report by the bank here

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829  CELL 416-520-1577
mark@mississauga4sale.com

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 ?
  http://www.mississauga4sale.com/internet-evaluation.htm
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Bank of Canada Maintains overnight interest rate at 0.5% as of March 9th 2016

Good morning from Fabulous Mississauga!

As most economists expected, the Bank of Canada refrained from cutting interest rates at this week's policy announcement meeting.

On March 9, 2016 the Bank of Canada announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent

The key policy overnight rate is only 50 basis points (one-half of one percentage points or 0.5%) and another 25 basis point (bp) cut would only reduce the Bank's ability to take action, if needed, in the future.

The recent economic news has shown a marked improvement, precluding the Bank from following on the previous two rate cuts this year.

Read more here BankofCanada

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829  CELL 416-520-1577
mark@mississauga4sale.com

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 ?
  http://www.mississauga4sale.com/internet-evaluation.htm
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Bank of Canada leaves key interest rate unchanged at 1/2%

Greetings from Fabulous Mississauga!

The Bank of Canada leaves key interest rate unchanged at 1/2% most anticipated interest rate announcement was on January 20, 2016 and the decision was that the Bank of Canada will be maintaining its overnight rate at 0.5%.  This means there will be no changes to prime rate. 

What does this mean to you, the consumer?  It's likely the major banks in Canada will leave their prime rates that they charge you at 2.70%

The last increase of the prime rate was September 2010 and this the longest stretch of no increase in history. 

Economists have been predicting that the prime rate will remain unchanged until sometime in 2016 and some even longer than that.  There are others who are predicting no change for 5 years or longer.

Many have been predicting the prime rate will increase 'next year' every year for the past 5 years now.

Personally, I believe that the low interest rates that we are currently experiencing are generational.  What I mean is that I predict we will see rates at or near their current levels up to about 5% for the next 15 years.  It's already been 5 years of low interest rates and it will likely remain this way for the next 15, a total of 20 years, a full generation!  That's my prediction.

You can still find discounts on variable rate mortgages as low as prime -0.5% with most banks offering about prime -0.10%. 

You can find 5 year fixed mortgages as low as 2.6% and even slightly lower sometimes.

Read the entire release from the Bank of Canada Here 

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829  CELL 416-520-1577
mark@mississauga4sale.com

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 ?
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Government of Canada Announcement changes to downpayment rules effective February 15, 2016

Greetings from Fabulous Mississauga!

The Government of Canada Announced a change to the downpayment rules effective February 15, 2016

The minimum down payment will remain 5% for any real estate purchase up to $500,000.  Once you are over $500,000, the downpayment must be 10%, but only on the amount exceeding $500,000. 

For example:  If you are purchasing a home for $800,000, you'll need 5% for the first $500,000 and 10% on the remaining $300,000 making the minimum down payment on this purchase $55,000. 

You will still be able to purchase a home up to $1,000,000 with 5% down until February 15th.  Purchases over $1,000,000 still require 20% down.

Read more about Interest Rates

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829  CELL 416-520-1577
mark@mississauga4sale.com

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 ?
  http://www.mississauga4sale.com/internet-evaluation.htm
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Bank of Canada leaves prime rate at 0.5% on October 21 2015

Hello from fabulous Mississauga!

How about those Jays and their win today? It was so exciting to see them win the 5th game today against the Royals, let's hope they can continue!

Other positive today for the Toronto and Canadian people who have debt is that the Bank of Canada left the prime rate at 0.5%  

This means that the Bank Prime Rate stays at .75% and the borrowing rate that you and most Canadians receive stays the same before the announcement at 2.70%

If you want to read the entire press release from the Bank, please use the link below:

http://www.bankofcanada.ca/2015/10/fad-press-release-2015-10-21

Have a Great Day and GO JAYS GO

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829  CELL 416-520-1577
mark@mississauga4sale.com

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 ?
  http://www.mississauga4sale.com/internet-evaluation.htm
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Bank of Canada keeping the target overnight interest rate at .5%

The Bank of Canada announced on September 9th that they are keeping the target overnight interest rate at .5% and this means that the bank rate stays at .75% 

see a graph of historical interest rates here:

http://www.mississauga4sale.com/rates.htm

This is the full press release below:

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.

Inflation has evolved in line with the outlook in the Bank’s July Monetary Policy Report (MPR). Total CPI inflation remains near the bottom of the target range, reflecting year-over-year price declines for consumer energy products. Core inflation has been close to 2 per cent, with disinflationary pressures from economic slack being offset by transitory effects of the past depreciation of the Canadian dollar and some sector-specific factors. The dynamics of GDP growth in Canada outlined in July’s MPR also remain intact. The stimulative effects of previous monetary policy actions are working their way through the Canadian economy.

Canada’s resource sector continues to adjust to lower prices for oil and other commodities, with some spillover to the rest of the economy. These adjustments are complex and are expected to take considerable time. Economic activity continues to be underpinned by solid household spending and a firm recovery in the United States, with particular strength in the sectors of the U.S. economy that are important for Canadian exports.

Increasing uncertainty about growth prospects for China and other emerging-market economies, in contrast, is raising questions about the pace of the global recovery. This has contributed to heightened financial market volatility and lower commodity prices. Movements in the Canadian dollar are helping to absorb some of the impact of lower commodity prices and are facilitating the adjustments taking place in Canada’s economy. While the overall export picture is still uncertain, the latest data confirm that exchange rate-sensitive exports are regaining momentum.

Meanwhile, risks to financial stability are evolving as expected. Taking all of these developments into consideration, the Bank judges that the risks to the outlook for inflation remain within the zone for which the current stance of monetary policy is appropriate. Therefore, the target for the overnight rate remains at 1/2 per cent.

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Bank of Canada Announces another rate cut to 0.5% as of July 15

As of July 15, 2015 the Prime Rate was cut to 0.5%

The Bank of Canada announced a drop in the prime rate to 0.5% on July 15 at the latest press conference,

The Bank of Canada is cutting its key interest rate for the second time this year, citing a larger-than-expected first half contraction and a “puzzling” stall in non-energy exports.

The central bank lowered its benchmark overnight rate by a quarter percentage-point Wednesday to 0.5 per cent, blaming faltering global growth, disinflation and low prices for oil and other commodities.

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829  CELL 416-520-1577
mark@mississauga4sale.com

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 ?
  http://www.mississauga4sale.com/internet-evaluation.htm
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Bank of Canada Interest Rate Announcement May 27 2015 no change to Prime Rate

Good morning from Beautiful Mississauga!

The Bank of Canada announced today that it is maintaining its target for the overnight rate at 0.75 per cent. The Bank Rate is correspondingly 1 per cent and the deposit rate is 1/2 per cent

This announcement of no change in the rate was expected by many economists.

Mortgage rates should remain where they are now, pending Bond Yield updates in the next weeks.

Read the entire report at this page:

http://www.bankofcanada.ca/2015/05/fad-press-release-2015-05-27/

Read more about today's mortgage interest rates

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829  CELL 416-520-1577
mark@mississauga4sale.com

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 ?
  www.mississauga4sale.com/internet-evaluation.htm
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• 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
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Bank of Canada announcement to keep the prime rate fixed at 0.75%

Good morning from Beautiful Mississauga!

The Bank of Canada announced April 15, 2015 that they will be keeping the prime rate fixed at 0.75% 

The Bank Rate (which is the rate that banks charge each other) is correspondingly 1 per cent and the deposit rate (the rate that the Bank of Canada pays/credits any deposits that it is holding for banks) is 1/2 per cent.  The Prime Rate to consumers is set by the major banks and it currently sits at 2.85%

Read about all definitions of Prime Rate and Bank Rates etc.

See interest rate trends at this page 

Read the full press release from the Bank of Canada rate announcement at this link:

http://www.bankofcanada.ca/2015/04/fad-press-release-2015-04-15/

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829  CELL 416-520-1577
mark@mississauga4sale.comMississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months?  Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
  www.mississauga4sale.com/internet-evaluation.htm
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Bank of Montreal BMO announced a reduction to their interest rates yesterday and cut the 5 year rate to 2.79% from 2.99%

Good morning from Beautiful Mississauga!

The Bank of Montreal announced a reduction to their interest rates yesterday, they cut the 5 year rate to 2.79% from 2.99% TD Bank followed this rate cut

The Bank of Montreal announced a ‘special’ rate for its five-year fixed-rate loan and was quickly followed by Toronto-Dominion.

This is typical of the banks to do this just before the prime lending season!

The BMO deal cuts its standard rate of 2.99 per cent to 2.79 per cent. TD Bank followed by cutting its 3.09 per cent rate to match BMO.

Although mortgage brokers can frequently do better than the advertised rate from the banks, the BMO move is seen as a headline-grabber to steal a lead on competitors, including the smaller lenders and non-bank sector

See more about current mortgage rates here:

http://www.mississauga4sale.com/rates.htm

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829  CELL 416-520-1577
mark@mississauga4sale.comMississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months?  Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
  www.mississauga4sale.com/internet-evaluation.htm
• Power of Sales and Foreclosureswww.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm
• 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
  www.mississauga4sale.com/popupquestion.htm
• See seasonal housing patternswww.mississauga4sale.com/TREBprice.htm
• Would you like me to send you a desk or wall Calendar?
  www.mississauga4sale.com/Calendar-Order-Form.htm

 

Should I lock in my mortgage rate due to recent Bank of Canada Rate Cut?

Should I lock in my mortgage rate?

This is a question many ask.

I just posted the article below about the current status of Short term or long term Mortgage Rates

Enjoy!

Mark

This page is a running record of how interest rates have changed over the past 5 to 10 years and what my personal philosophy is regarding what you should do with your mortgage - namely, should you lock in your mortgage interest rate or should you stay with a variable rate mortgage.  This is the question!

After nearly 4.5 years, the Bank of Canada made an announcement last week that shocked the experts, they lowered the Prime Rate by 0.25%  Nobody was expecting this reduction!  The reasons behind the drop are varied, but the largest reason is that the price of oil is under $50 per barrel and the Bank of Canada performs most of it's forecasting based upon the assumed price at $60 per barrel.  Thus, with low inflation, low oil prices generating lower overall revenue for Canada (and certainly Western Canada) the bank decided to lower the rate.

Read about the current Bank of Canada Prime Rate Update

The major Canadian banks did not immediately lower their prime rates that they charge their best customers.  As a matter of fact, the Banks only lowered their prime rate by .15% and not the .25% that the Bank of Canada dropped the rate.  Bank prime is now 2.85% and mortgage rates for fixed term are nearly the same. 

Many believe that there will be mortgage rate wars over the next few months.  The banks still have plenty of cash to lend so this is likely the case.

We are still at or near 50 year historic lows- meaning, it's still a good time to 'lock in' your rate if you are not a gambler.

Again, please don't forget these are posted rates and often you can get a lower rate than posted if you negotiate.

Variable rates - the banks are posting their rates as prime plus 0.000% and you can likely find prime minus .2%  to prime minus .5% or possibly more

I've written many articles about staying with short term or variable mortgage rates at this page:  http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

My preference for many years (and continues to be) to go variable, but if you are not a gambler, then it could be getting close to the time where you lock in your mortgage.

I recall reading an article the day of the rate cut on January 21, 2015 that not one of the 19 'experts' on the Bloomberg Panel had predicted a rate cut. 

Now if you read about predictions for the March 4, 2015 Bank of Canada Interest Rate Announcements the 'experts' are saying that they expect the bank rate to drop another .25%

Read the article below that just appeared in the Herald about rates, it's very interesting what the experts are now saying about rates.

If you want interest rate security, then you go long term.

If you want to save money, my advice is to go variable, always (at least for the next 1 to 1.5 years).

....and this is still why

http://www.mississauga4sale.com/rates.htm#1and5

The mortgage interest rate debate continues.....

All the best!

Mark

Read more about this subject at this page: http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

Read this particular post online at this page: http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm#2015mortgageoutlook