Mortgage Interest Rates drop slightly in the GTA

The table below shows the posted and attainable rates in and around the GTA

If you need a contact to obtain these types of rates, please send me an email.
Thank you,
Mark

TERM	POSTED	Attainable RATES*
6 Month	5.20%	5.20%
1 Year	5.00%	3.89%
2 Year	5.75%	4.44%
3 Year	5.75%	3.75%
4 Year	5.69%	4.29%
5 Year	5.79%	4.37%
7 Year	7.00%	5.90%
10 Year	7.35%	6.05%
Variable Rate		3.75%
Prime Rate		3.00%

* Rates may vary and are subject to change without notice.
Rates Last Updated: Thursday, February 05, 2009

Where is the Mississauga real estate market heading?

Many buyers are sitting on the sidelines waiting for 'the market to bottom out" My observations in the past when we have gone through difficult real estate markets (as we are right now) is that sitting back for a while may be the best course of action to take for some.

With that said, we just purchased another investment property. I feel that at least the townhouse market in west Mississauga has already bottomed out and did so back in December of 2008.

The problem with our local real estate market is that we will not know until about 3 to 6 months AFTER our market has turned that it bottomed out 3 to 6 months ago. This is almost always the case!

Plus, when the market turns, it goes up very fast.

Currently, there is plenty of pent up demand in the real estate marketplace and there are many people with cash sitting waiting to purchase real estate.

Certainly interest rates are favourable, they are at all time record low percentage rates, so this is no excuse not to make your move up or purchase an investment property.

I hope this finds you healthy and happy,

Mark

TREB report on Rental Market in GTA

This is the quarterly report by the Toronto Real Estate board with regards to rental property transactions over the past quarter

Highlights are:

• there were 3433 rental transactions in the last quarter, a 30% increase over the same period in 2007
• condominium apartments make up the bulk of rental dwellings in downtown Toronto and downtown Mississauga

West Area

• Transactions rose 30% to 837 units, due in part to listings near Mississauga City Center.

• 699 condominium apartments were rented, up 33 percent. Average rents trended upward in two out of four categories (one and three bedroom units). Two bedroom rents fell marginally to an average of $1,611 per month.

• The West districts remained TREB’s most active area for townhouse rentals, with 138 leased over the past four months. Two-bedroom units rented for an average of $1,502 per month, down two percent. Three-bedroom units rented for an average of $1,555 per month, down one percent from last year.

The full release is below
Thank you,
Mark



Between September 1, 2008 and December 31, 2008, Toronto Real Estate Board (TREB) Members reported 3,433 rented condominium apartments and townhouses in the Greater Toronto Area.
This represented a 30 per cent increase over the 2,635 transactions recorded during the same time frame in 2007. A good part of this increase likely came from rental listings in newly completed condominium apartment buildings containing investor-owned units.

"The increasing strength of the rental market combined with low interest rates and reasonable home prices mean that now could be an excellent time to purchase an investment property," said Maureen O'Neill, President, Toronto Real Estate Board.

"Given the demand for rental units, tenants can cover some of the owner's operating costs for an investment property, while property owners look forward to a healthy return in the market value in the long term."

Condominium apartment rents on an annual basis rose for one, two, and three bedroom types during the September to December period. Two bedroom units, for example, rose two per cent to $1,895 per month.

"Investor-owned condominium apartments have become an increasingly important component of the GTA rental market," according to Jason Mercer, Senior Manager Market Analysis.

"Very few purpose-built rental apartments have been completed in the GTA over the past few years. Many renters searching for apartments with modern finishings and amenities have been attracted to rental condominium apartments listed by TREB Members on the TorontoMLS system."



---------------------------------------------------------------------------
Total Av. Rent Av. Rent Av. Rent Av. Rent
Condo Apt. Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Units
Rented
---------------------------------------------------------------------------
Sept-Dec 2,404 $1,232 $1,451 $1,858 $2,011
'07
---------------------------------------------------------------------------
Sept-Dec 3,152 $1,194 $1,485 $1,895 $2,056
'08
---------------------------------------------------------------------------
% Change +31% -3% +2% +2% +2%
---------------------------------------------------------------------------
Source: Toronto Real Estate Board
---------------------------------------------------------------------------

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

TREB and GTA Resale Housing Market-Transactions and Prices in January

TREB just reported the January sales figures

Summary:

• Average sales prices dropped to 343,632 compared to 361,415 down about 5% compared to previous month
• Number of transactions in January were 2670 compared to 5075 for January of 2008, down about 53%

This is the complete press release from TREB today

I hope this finds you happy and healthy,
Mark

GTA REALTORS® Report 2,670 Resale Housing Transactions in January

TORONTO - February 5, 2009 -- TREB Members reported 2,670 sales in January from the 5,075 sales reported in the first month of 2008. Of these, 1,106 transactions took place in the City of Toronto compared to 2,128 in January 2008. In the surrounding “905” area, 1,564 sales were recorded, from 2,947 last year.

The GTA housing market has not been immune to the economic slowdown in Canada. Some potential home buyers were less-certain about their positioning in the economy over the past year. Until the economy rebounds, and along with it consumer confidence, the number of existing home sales will be more moderate in comparison to the average over the last ten years.

Home prices also moderated in January. The average MLS selling price dipped to $343,632. The average price was $364,415 in the City of Toronto, from $404,202 in 2008. In the surrounding regions (“905” area code), the average price was $328,935 from $352,965 last year. Buyers have experienced more choice in the existing home marketplace. Lower selling prices have resulted.

It should be noted that the GTA housing market has followed the broader economic slowdown, but was not a cause of the downturn. Home prices remained affordable throughout the new millennium. The average family can still qualify for a mortgage on the average priced home. This remains the case today. Given that we are not facing an early-1990s-style affordability crisis, the rebound in the housing market will likely be quick once economic recovery takes hold.

Median Price

The median price in January was $303,000 from the $319,000 recorded during January of 2008.

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Positivity, your key to success! - 4.39% 5 year fixed!

This is a great article, which I agree with too!

Good afternoon,

As you may now be aware, the Bank of Canada dropped their rate by 50 basis points yesterday bringing the prime rate down to 3.00%, which lenders are quickly matching.

This is the lowest the prime rate has been in history, which adds to the opportunity homebuyers have to purchase new property in this market, and for existing homeowners to refinance their existing mortgages. Lenders have already begun lowering their 5 year fixed rates to as low as 4.39%!


These new rates could be enough to change a homebuyers attitude and potentially spark them into taking action. By keeping your attitude positive, you put out a positive vibe which is picked up on by everyone speak with, particularly your clients.

When people around you pick up on your positive vibrations, they will be more inclined to make the that buying decision.

A great way to maintain a positive attitude is to set aside an hour a day to read books on success, which can do wonders for your thinking patterns.

Some books I highly recommend include:


- Think and Grow Rich by Napoleon Hill,
- Think Big and Kick Ass by Donald Trump
- Secrets of the Millionaire mind by T. Harv Ecker
- The Power of Now by Eckhart Tolle
- Awaken the Giant Within by Anthony Robbins


Another great program is "Six Minutes to Success". This program is produced by Bob Proctor who you may know from the documentary 'The Secret'. If you have not seen 'The Secret' I highly recommend purchasing the DVD.

There is great opportunity out there, so let's take advantage of it! Now IS the best time to buy house! The lowest 5 year fixed rate again is 4.39% and the lowest variable is 3.80% (prime + 0.8%).

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

10 Questions to ask your realtor

These questions came across my desk the other day and I thought I would post them here.

I think that every buyer and seller should ask these questions to their prospective agent, you'd be surprised at the answers that you will get!

All the best!
Mark

10 Questions to Ask a Real Estate Agent - How to Interview an Agent

By Elizabeth Weintraub, About.com

Smart consumers interview potential real estate agents before deciding on whom to hire. Just as you are sizing up the potential for a good fit, rest assured that the real estate agent will likely be interviewing you, too. Be wary of agents who don't ask you questions and probe for your motivation. You wouldn't work with just any agent off the street, and good agents are just as selective about their clients, too. Caution: Don't interview agents from the same company! Ask your Scotiabank Mortgage Specialist to introduce you to a Scotiabank Key Partner Realtor.

1. How Long Have You Been in the Business? The standard joke is there's nothing wrong with a new agent that a little experience won't fix. But that's not to say that freshly licensed agents aren't valuable. Much depends on whether they have access to competent mentors and the level of their training. Newer agents tend to have more time to concentrate on you. Some agents with 20 years of experience repeat their first year over and over. Other 20-year agents learn something new every year.

2. What is Your Average List-Price-to-Sales-Price Ratio? Knowing the agent's average ratio speaks volumes. Excluding sizzling seller's markets, a good buyer's agent should be able to negotiate a sales price that is lower than list price for buyers. A competent listing agent should hold a track record for negotiating sales prices that are very close to list prices. Therefore, listing agents should have higher ratios closer to 100%. Buyer's agent ratios should fall below 99%.

3. What is Your Best Marketing Plan or Strategy for My Needs? As a buyer, you will need to know: How will you search for my new home?; How many homes will I likely see before I find a home I want to buy?; Will I be competing against other buyers?; How do you handle multiple offers?; Do you present offers yourself? As a seller, you will need to know: Specifically, how will you sell my home?; What is your direct mail campaign?; Where and how often do you advertise?; Will you show me a sample flyer?; How do you market online?

4. Will You Please Provide References? Everybody has references. Even new agents have references from previous employers. Ask to see them. Ask if any of the individuals providing references are related to the agent. Ask if you can call the references with additional questions.

5. What Are the Top Three Things That Separate You From Your Competition? A good agent won't hesitate to answer this question and will be ready to fire off why he/she is best suited for the job. Everyone has their own standards, but most consumers say they are looking for agents who say they are: Honest and trustworthy; Assertive; Excellent negotiators; Available by phone or e-mail; Good communicators; Friendly; Analytical; Able to maintain a good sense of humour under trying circumstances.

6. May I Review Documents Beforehand That I Will Be Asked to Sign? A sign of a good real estate agent is a professional who makes forms available to you for preview before you are required to sign them. If at all possible, ask for these documents upfront. As a buyer, ask for copies of the following: Buyer's Broker Agreement (is it exclusive or non-exclusive?); Agency Disclosures; Purchase Agreement; Buyer Disclosures. As a seller, ask to see: Agency Disclosure; Listing Agreement; Seller Disclosures.

7. How Will You Help Me Find Other Professionals? Let the real estate agent explain to you who he/she works with and why he/she chooses these professionals. Your agent should be able to supply you with a written list of referring vendors such as mortgage brokers, home inspectors and title companies. Ask for an explanation if you see the term "affiliated" because it could mean that the agent and his/her broker are receiving compensation from one or all of vendors, and you could be paying a premium for the service.

8. How Much Do You Charge? Don't ask if the fee is negotiable. All real estate fees are negotiable. Typically, real estate agents charge a percentage, from 1% to 4% to represent one side of a transaction: a seller or a buyer. A listing agent may charge, for example, 3.5% for him/herself and another 3.5% for the buyer's agent, for a total of 7%.

9. What Kind of Guarantee Do You Offer? If you sign a listing or buying agreement with the agent and later find that you are unhappy with the arrangement, will the agent let you cancel the agreement? Will the agent stand behind his/her service to you? What is his/her company's policy about cancelled agreements? Has anybody ever cancelled an agreement with him/her before?

10. What Haven't I Asked You That I Need to Know? Pay close attention to how the real estate agent answers this question because there is always something you need to know, always. You want an agent to take his/her time with you - to make sure you feel comfortable and secure with his/her knowledge and experience. He/She should know how to listen and how to counsel you, how to ask the right questions to find out what he/she needs to know to better serve you.

5 financial strategies to bolster your bottom line in uncertain times

I agree with all these 5 ideas, everyone should follow this philosophy!Problem is, when you are saddled with debt, it's difficult to do these things, but do what you can, you will be thankful in the future!All the Best!Mark
Scotiabank offers Canadians five financial strategies to bolster their bottom line in uncertain times

TORONTO, Dec. 29 /CNW/ - With holiday shopping and gift giving behind us and the New Year just ahead, now is the perfect time for people to take stock of their financial situation. While current economic conditions are challenging many Canadians to re-think their budget, Scotiabank has some practical suggestions to help households shore up their financial position.

1. Don't panic or make emotional decisions. One way to avoid the trap of leaping before you look and making financial or investment decisions you'll regret in the long run, is to manage stress by paying attention to your physical and emotional fitness. If you don't have a financial plan, now is the time to get one that emphasizes debt management andmap out your short and long term goals. Focusing on those goals will help you maintain perspective.

2. Pay down debt. Start by tackling consumer debt such as higher rate department store and other credit cards. Inform yourself about interest rates and options, such as a consolidation loan, that will help you free up cash for other priorities such as investing or paying down your mortgage.

3. Reduce your discretionary spending so you can redirect more money to debt repayment or savings. Review your household budget to track how much money is coming in, what your fixed expenses are and identify things you're spending money on that you could live without. For example, pack your lunch rather than eating out every day, cut back on magazine subscriptions or visit the library more often rather than buying books all the time. Then consider setting up an automatic savings plan so that the money you're saving comes straight out of your bank account. Before long, chances are you won't even miss it.

4. Make an RRSP contribution and then use your refund to help manage competing financial priorities. The refund could be used to pay down high cost debt, make an extra mortgage payment, open a new Tax-Free Savings Account (TFSA) or contribute to your child's Registered Education Savings Plan (RESP). Borrowing to make an RRSP contribution makes good fiscal sense if you are confident that you can pay the loanback relatively quickly.

5. Position your investment portfolio for recovery - but diversify to manage risk. Remember that when markets are down, there are investment opportunities that can potentially benefit your portfolio in the long term. Be diversified with an appropriate mix of asset classes (equity, bonds and cash equivalents) that fit your risk tolerance, investment time horizon and income requirements. Stay in regular contact withyour financial advisor to ensure your portfolio is appropriately balanced to meet your needs, manage risk, and to offset market fluctuations.

Mortgage Rate inside information!

After the Bank of Canada's rate announcement Tuesday morning, the banks were unanimous in matching the rate drop.

The Prime lending rate, to consumers, has dropped to 3.00%.

Throughout the day yesterday, rate notices trickled in and below you'll find a recap of the best rates available this morning.....I'll keep you posted on any new changes.

There is aggressive pricing by some lenders - note the 1 yr rate of 3.99%.

Many clients anticipate further rate drops and are leaning towards variable rate mortgages.

Did you know....

• Lenders will allow variable rate mortgage clients to switch into a fixed rate mortgage during the term BUT the majority of lenders don't commit to offering their lowest rates when the borrower decides to convert to a fixed rate. Out of the many lenders I know about, only a few state this promise in writing.
• Mortgage interest is usually compounded on a semi-annual basis; however, several lenders use monthly compounding on their variable rate mortgage.....the interest cost is greater with monthly compounding. You need to know the difference in order to make an informed decision so make sure you ask!.

These are only 2 examples of the benefits clients get from working with an experienced mortgage specialists. I can put you in touch with a mortgage person who unlike a bank representative, is allowed to use many lenders which allows them to place you with the best mortgage solution. I sound like a mortgage broker, don't ?I! The bank rep won't point out the weaknesses in their product - it's the only one they have to sell. You will have choices and make sure you have all the information.

I'm always happy to hear from you, let me know if you have any questions or how I can help you!

All the Best!

Mark


MORTGAGE RATES
Best rates as of January 21, 2009

Prime Rate.........3.00%
Variable Rate......Prime plus .80%
1 yr fixed...........3.99%
3 yr fixed...........4.64%
4 yr fixed...........4.69%
5 yr fixed...........4.59% (over $500,000; otherwise 4.69%)
10 yr fixed..........6.45%

...other terms available; data subject to change without notice

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Bank of Canada Prime Rate Reduced Again!

The Bank of Canada announced this morning another whopping rate cut, this time a 1/2 % rate reduction to an all time low of 1.0%

This time the central banks in Canada have followed suit or will follow the .5% reduction today.

Last time the Bank of Canada reduced the rate 3/4% and the banks only cut their interest rates by 1/2%, many were furious about this, myself included.

At least this time they reduced their lending rates the same amount, but they still are making billions in extra profits by not reducing the 1/4% last time. Not that I am feeling sour, just want you to know what's happening!

I hope this find you healthy and happy,
Mark

See current mortgage interest rates:
http://www.mississauga4sale.com/rates.htm

The official announcement and comments are below:
OTTAWA — The Bank of Canada has chopped its key interest rate by another half percentage point to its lowest level ever, and warned that the Canadian economy will contract by 1.2 per cent this year.

The central bank's target for the overnight lending rate now stands at 1 per cent – lower than in 1958, when the most-watched policy rate was 1.12 per cent.

“The outlook for the global economy has deteriorated since the bank's December interest rate announcement, with the intensifying financial crisis spilling over into real economic activity,” the bank said in its gloomiest statement yet.

Canada's major commercial banks, which came under fire in December when they passed on only 50 basis points of the 75-point rate cut made by the central bank, reacted swiftly to its latest move, passing along the full reduction. (There are 100 basis points in a percentage point.)

Toronto-Dominion Bank and Bank of Montreal responded by announcing they have cut their prime lending rates by 50 basis points to 3 per cent – and BMO also said it is cutting key mortgage rates by 30 to 50 basis points. Canadian Imperial Bank of Commerce, Royal Bank of Canada, Bank of Nova Scotia and Laurentian Bank of Canada said later in the morning that they, too, have cut their prime rate to 3 per cent from 3.5 per cent.

Last fall, the central bank had counted on the Canadian economy growing by 0.6 per cent this year. But since then, it has recognized that Canada is in recession, and now says the economy will shrink by 1.2 per cent in 2009, as the country succumbs to sagging global demand, lower energy prices and a collapse of confidence around the world.

“Canadian exports are down sharply, and domestic demand is shrinking as a result of declines in real income, household wealth, and consumer and business confidence,” the bank said.

The Canadian dollar fell sharply immediately following the bank's announcement, dropping as far as 78.76 cents U.S. As midday (ET) approached, however, it had edged up to 79.32 cents, down by 0.38 of a cent from Monday's official close.

Since slack is building up in Canada's economy and housing prices are coming down modestly, inflationary pressure should also ease, the bank explained.

Total inflation will likely fall below zero for much of 2009 because of lower energy prices. And even core inflation, which excludes energy and other volatile items, will drop to about 1.1 per cent at the end of this year, the bank said.

But the central bank sees a remarkably strong recovery in 2010, with the Canadian economy growing 3.8 per cent next year and inflation edging back up to hit the bank's two per cent target in early 2011.

In order for the recovery to take hold, the global financial system has to stabilize, the bank said, but added that that process has begun, “There are signs that these extraordinary measures [by governments and central banks] are starting to gain traction, although it will take some time for financial conditions to normalize,” the statement said.

Plus, the global economy should start to benefit from “considerable” monetary and fiscal stimulus, the bank said.

Canada's recovery should also be bolstered by the past depreciation of the Canadian dollar, the statement added.

The bank did not promise any further interest rates to follow. Instead, the bank pointed out that it had already reduced its key rate by three and a half percentage points since December 2007, and added that it would keep an eye on how the economy and markets develop, and decide accordingly what it should do with rates.

“Guided by Canada's inflation-targeting framework, the bank will continue to monitor carefully economic and financial developments in judging to what extent further monetary stimulus will be required,” it said.

Economists have warned that central banks need to be prepared to quickly reverse their aggressive interest rate cuts of the past year as soon as they see signs of recovery. Otherwise, there is so much monetary and fiscal stimulus floating around that today's disinflation could easily turn into an inflation problem when economies begin to grow again.

Economists have also been on the lookout for alternative forms of boosting the economy, aside from interest rates, with the U.S. Federal Reserve's key rate already hovering around zero, and the Bank of Canada at its lowest level too.

While Bank of Canada Governor Mark Carney has said previously that he is examining his options, there was no suggestion in Tuesday's statement that any non-conventional measure is imminent.

Still, with the federal budget just a week away, the government is expected to introduce several easing mechanisms, as well as a huge stimulus program to help ease the bite of the recession.

The Bank of Canada will issue a more complete economic outlook on Thursday.

Douglas Porter, deputy chief economist at BMO Nesbitt Burns said the commercial banks were able to lower their prime rates in tandem with the central bank cut because their own funding costs have edged down, and retail demand for the banks' own commercial paper is on the rise.

Mr. Porter also said in a note to clients that the central bank's “actions and words were almost exactly in line with expectations of the forecasting community,” while its near-term economic forecasts “closely mirror” BMO's.

“If global financial markets continue to stagger in the coming weeks, the [central bank] still has the room and the willingness to cut further as the need arises,” he added.

However, Erin Weir, economist for the Canadian arm of the United Steelworkers union, argued that the Bank of Canada did not cut rates enough.

“The [bank] should have matched the American Federal Reserve and cut to zero,” Mr. Weir said in a commentary – either to avert deflation or to stimulate the economy.

He added that the bank's “timidity reinforces the need for a substantial stimulus package in next week's federal budget.”

---

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Mortgage rate promotions in the GTA

Hello,

Hope you've have a good start in 2009.
I've seen some good news regarding rates in the marketplace: Fixed rates have dropped again.

I've seen some promotions as follows.

3 year fixed rate: 4.25%

1 year fixed rate: 3.99%

5 year fixed rate as low as 4.35%

5 year closed variable rate: Prime rate + 0.45% (3.95%)

Since the fixed rate is quite low, if you are locked into fixed rates at above 5%, you may consider to break the mortage, pay the penalty and save money in the long run.

For example, if you currently have a fixed rate 5% with 3 years left, by switching to 3 year fixed at 4.25%, you will save 0.75% per year, and 2.25% for 3 years.

The penalty for breaking your current mortage is 3-month interest, which is 5%/4 = 1.25% of your outstanding mortgage amount.

Thus you will save 1% of your outstanding mortgage amount for the remaining 3 years. If you have for example a $200,000 mortgage, that would be $2000 in savings.

Let me know if you any questions to ask about this plan and if you want to be put in touch with a mortgage person to help you with this.

Thank you,
Mark