Showing posts with label mortgage-interest-rates. Show all posts
Showing posts with label mortgage-interest-rates. Show all posts

Wednesday, April 06, 2016

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


Sunday, January 24, 2016

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.

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


Monday, December 14, 2015

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.


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





Wednesday, October 21, 2015

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:


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


Wednesday, September 09, 2015

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.


Toronto Real Estate Board (TREB) Average Prices and Graph

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

Wednesday, July 15, 2015

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


Wednesday, May 27, 2015

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/


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
  • 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

Thursday, April 16, 2015

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%


See interest rate trends at this page 




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
  • 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
 

Wednesday, March 18, 2015

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


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
 

Thursday, January 29, 2015

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


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

Wednesday, January 21, 2015

Bank of Canada Interest Rate Cut Shock with Article with videos and more information

Hello from Beautiful Mississauga!

The link below is to a very good article about today's Bank of Canada Interest rate cuts, how the markets reacted so far, with some great graphs in it, make sure your volume is turned low as there is an auto-load video

the graph near the bottom is also very interesting where they say the Bank of Canada "was the first to blink"  - if you watch the other videos or listen to the Bank of Canada Governor's comments he uses many euphemisms that allow him to stay 'non-committal' on many key issues - this is the Bank's way of not signaling their future intentions to the marketplace - so interesting!



Borrowers, current and pending, will be very pleased about this quarter percent rate drop

The Bank's announcement today to reduce rates was a real shock to the Canadian Economy and the world, could prove to be a very forward thinking decision in light of other indicators in the economy!

All the Best!
Mark

Bank of Canada Rate announcement to drop Prime Rate by .25%

Hello!

Just when you thought that you could predict the future, the Bank of Canada announces a prime interest rate cut!

After nearly 4.5 years, the bank rate has finally changed.  I'm sure very few predicted the rate would drop. 

The prime rate is now 3/4% and the prime rate banks charge to customers is now 2.75%  The previous rate was 3%  This is unexpected news and good for anyone looking to borrow soon or having a mortgage coming up for renewal any time soon!

This is in direct contrast to all the recent announcements and many economists saying that the economy is bullish and they anticipate a rise in the rate in late 2015 or 2016, so much for the experts!

This is an excerpt below,

Enjoy!
Mark



The Bank of Canada today announced that it is lowering its target for the overnight rate by one-quarter of one percentage point to 3/4 per cent. The Bank Rate is correspondingly 1 per cent and the deposit rate is 1/2 per cent. This decision is in response to the recent sharp drop in oil prices, which will be negative for growth and underlying inflation in Canada.
Inflation has remained close to the 2 per cent target in recent quarters. Core inflation has been temporarily boosted by sector-specific factors and the pass-through effects of the lower Canadian dollar, which are offsetting disinflationary pressures from slack in the economy and competition in the retail sector. Total CPI inflation is starting to reflect the fall in oil prices.
Oil’s sharp decline in the past six months is expected to boost global economic growth, especially in the United States, while widening the divergences among economies. Persistent headwinds from deleveraging and lingering uncertainty will influence the extent to which some oil-importing countries benefit from lower prices. The Bank’s base-case projection assumes oil prices around US$60 per barrel. Prices are currently lower but our belief is that prices over the medium term are likely to be higher.
Read the entire report here:
http://www.bankofcanada.ca/2015/01/fad-press-release-2015-01-21/

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
Power of Sales and Foreclosures
www.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 patterns
www.mississauga4sale.com/TREBprice.htm
Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm
 

Wednesday, December 03, 2014

Bank of Canada Interest Rate stays steady December 3rd 2014

Good morning from Beautiful Mississauga!

The Bank of Canada made their interest rate announcement and once again they maintain their overnight rate at 1%.

The interest rate has been unchanged since September 2010 adding to the longest period of no change in the interest rate in history.

This means the prime rate to consumers remains unchanged at 3.00%

Some economists have been predicting that the prime rate will remain unchanged until sometime in 2016

My prediction is now for mid 2016 before we will see an increase in the rate of 3%   Many are saying longer.

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
 

Wednesday, October 22, 2014

Bank of Canada keeps prime rate at 1%

The Bank of Canada announced today at their regular meeting that they are keeping the prime rate at 1%

This means that the Bank rate charged to customers at the major banks will remain at 3%

It's been over 4 years since the rate was pinned at 1% and the trend appears to be continuing.

The full release is below.
Mark


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.
Inflation in Canada is close to the 2 per cent target. Core inflation rose more rapidly than was expected in the Bank’s July Monetary Policy Report (MPR), mainly reflecting unexpected sector-specific factors. Total CPI inflation is evolving broadly as expected, as the pickup in core inflation was largely offset by lower energy prices. Underlying inflationary pressures are muted, given the persistent slack in the economy and the continued effects of competition in the retail sector.
Although the outlook remains for stronger momentum in the global economy in 2015 and 2016, the profile is weaker than in July and growth prospects are diverging across regions. Persistent headwinds continue to buffet most economies and growth remains reliant on exceptional policy stimulus. Against a background of ongoing geopolitical uncertainties and lower confidence, energy prices have declined and there has been a significant correction in global financial markets, resulting in lower government bond yields. Despite weakness elsewhere, the U.S. economy is gaining traction, particularly in sectors that are beneficial to Canada’s export prospects.  The U.S. dollar has strengthened against other major currencies, including the Canadian dollar.
In this context, Canada’s exports have begun to respond. However, business investment remains weak. Meanwhile, the housing market and consumer spending are showing renewed vigour and auto sales have reached record highs, all fuelled by very low borrowing rates. The lower terms of trade will have a tempering effect on income.
Canada’s real GDP growth is projected to average close to 2 1/2 per cent over the next year before slowing gradually to 2 per cent by the end of 2016, roughly the estimated growth rate of potential output. As global headwinds recede, confidence in the sustainability of domestic and global demand should improve and business investment should pick up. Together with a moderation in the growth of household spending, this is expected to gradually return Canada’s economy to a more balanced growth path. As the economy reaches its full capacity in the second half of 2016, both core and total CPI inflation are projected to be about 2 per cent on a sustained basis.
Weighing all of these factors, the Bank judges that the risks to its inflation projection are roughly balanced. Meanwhile, the financial stability risks associated with household imbalances are edging higher. Overall, the balance of risks falls within the zone for which the current stance of monetary policy is appropriate and therefore the target for the overnight rate remains at 1 per cent.


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