The bank of Canada is keeping rates where they are

The bank of Canada is keeping the prime interest rate at this ultra low
level at least until next year

The bank of Canada his decision today to keep the interest rate at these
altra low levels could have a serious negative impact on the Canadian dollar
which dropped almost 2 points today in trading on the world market

If the Bank increased the rates it would have serious impact and apply
upward pressure on inflation

They are trying to keep inflation low as well as they don't want our dollar
to reach par with the US dollar

The Bank of Canada is stating intrest rates will stay this low until at
least late spring next year.

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

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Mississauga and latest Prime rate and five year fixed rates currently 3.68%

This is another great article about the current mortgage interest rates and
why they are at current levels and what the future holds.
Enjoy,
Mark

Good afternoon,

As expected, the Bank of Canada kept their overnight rate unchanged at 0.25%
(meaning the prime lending rate remains unchanged at 2.25%). With the
economy starting to show some signs of recovery and with the real estate
market as strong as it is, the Bank of Canada would have likely raised the
rate this morning if it were not for our strong Canadian dollar.

Raising mortgage interest rates would send our dollar higher, therefore
doing damage to our economy. As long as the Canadian dollar remains high,
we can expect the prime rate to stay fairly low and there is some
speculation now that the prime rate may be left unchanged beyond the BOC's
commitment to hold it to mid 2010.

With most major lenders pumping their 5 year fixed mortgage rates up by as
much as 35 basis points last week, there are still many rate deals available
for your clients. It still amazes me just how many homebuyers go to their
bank and accept whatever rate they are quoted without actually taking a look
at other options that could save them thousands of dollars. For example,
most banks are offering a 'discounted' 5 year fixed rate of around 4.35%.
With a mortgage amount of $300,000 and an amortization of 35 years, the
monthly payment would be $1,384.88 at 4.35% Let's now compare this with
the lowest available market rate for a five year fixed, which is 3.68%.
For the exact same mortgage amount, your monthly payments would only be
$1,266.45 saving the client $118.43 per month or a whopping $7,105.80 over
the 5 year term! Now, this 3.68% rate is for closings within 30 days
only, and comes with limited prepayment privileges of 5% per year, so it may
not be for everyone, however over 90% of homeowners never take advantage of
their prepayment options anyway. With a 5% prepayment privilege, they can
still pay up to $15,000 toward their mortgage without penalty using the
above example, so does it really make sense for you to PAY just to have the
OPTION to pay up to $60,000 more per year towards their mortgage? While
some people may have that kind of disposable income to throw around, I would
say that most don't.

Today's lowest mortgage rates:

1 year 3.68
2 year 3.20
3 year 3.50
4 year 3.85
5 year 3.68 (quick close, no frills)
5 year 3.84 (full prepayment options, 90 day close)

5 year ARM 2.15 (prime -0.10)
I hope this finds you Happy and Healthy!

All the Best!

Mark

Read more about:
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Homes for Sale

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* or Search the MLS
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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

<http://www.mississauga4sale.com/selling-process.htm> Thinking of Selling?
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RBC feels our economy is on the rebound

This is another good news story from one of the major banks in Canada. RBC feels that our economy is on the rebound and should be moving at a very good pace in the next few quarters.

This is good news for a change!

Enjoy!
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?

Canada’s economy set for rebound

Special factors took the steam out of Canada’s GDP in July, but the stage is set for a decent rise in August. The special factors limiting July’s output were the tepid rebound in motor vehicles and parts output, temporary closures in the mining sector, unseasonably cool weather that cut into utilities output and a strike by municipal workers.

In 2010, we forecast growth of 2.6% with consumer spending growing by 2%. While Canadian household balance sheets are sounder than in the United States, the sharp drop in asset values and continued debt growth during the recession produced a rise in the debt-to-asset ratio and contributed to debt as a percentage of disposable income hitting an all-time high. Rising financial asset prices and a rebound in real estate values suggest that these ratios headed back down in the third quarter but will still limit spending growth in the near-term.

Another solid gain in manufacturing sales combined with a return to more normal conditions in other industries will provide support to August GDP and will be sufficient to see Canada’s economy record a modest increase in the third quarter.

The Bank of Canada has made a "conditional commitment" of a 1/4 per cent overnight rate "at least through the end of June of next year". In a recent speech, Governor Carney reiterated that this commitment was conditional on the performance of inflation relative to the Bank’s target. Based on our economic

forecast, we expect that the Bank will follow the prescribed policy route, with 50 basis point hikes likely in both the third and fourth quarters of next year.

RBC comments on the economy

This is the latest report from RBC on the state of the economy

Enjoy!
Mark

ECONOMICS DIGEST

October 2009

Economy flatlines in July

GDP output stalled in July, disappointing forecasts for a 0.5% monthly increase. However, despite July's disappointing result, the spurt in manufacturing sales will likely be sufficient to see Canada's economy record a modest increase

in the third quarter.

Strong job gains and a fall in the unemployment rate in September indicate improvement in labour market conditions and support our view that the economy is emerging from recession.

Retail sales disappointed in July, falling 0.6% after a 1.1% rise in both May and June, but the healthy retail sales gains in May and June represented a sharp turnaround from the lacklustre sales from February to April and resulted in sales

being up 2% at an annualized rate at the start of the third quarter.

Housing starts were stronger than expected in September at an annualized 150,100 (market expectations 148,000). Although this was a 4.6% decline from 157,300 in August, housing starts are still up from a recent trough in April of 118,500.

The merchandise trade balance for August deteriorated to C$2 billion from a C$1.3 billion deficit in July. Upward pressure on imports and downward pressure on exports will likely result in net trade acting as a drag on economic growth through next year.

The headline CPI was flat in August and the year-over-year rate stayed in deflationary territory, rounding out three months of negative prints. The Bank of Canada’s core measure, which is reflection of underlying price pressures, continued to trend down and, at 1.6% year-over-year, was the lowest since July 2008.

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?

Fixed Rate Are Going Up!

You may wish to lock in your mortgage now and enjoy the great rates that are available

Fixed Mortgage Rates Are Going Up!


Major banks like RBC have already increased their 4 and 5 year fixed rates by .35%.

And other banks will follow the same steps in the coming days due to the increase in the 5 year bond yield.

There's now a much higher probability we won't see today's insanely low fixed rates again for a while.

Many mortgage companies have Fixed Rates that are still low, its a good time for you to do pre-approval and to hold the rate before it goes up.

Here's an example of a current rate sheet.

Variable rate at Prime minus .10%= 2.15%
5 year fixed at 3.79%
4 year fixed at 3.59%
3 year fixed at 3.39%


WHY IS FIXED RATE GOING UP?
The 5-year bond yield is soaring over 23 basis points, to 2.81%! It's the biggest jump in bond rates in over a year and it comes on top of strong gains over the previous few days.
The yield is now near an 11-month high, and that means fixed mortgage rate increases are around the corner.

What's behind all this?
Today's positive employment report is the big driver. It caught the bond market totally off guard.

Here's what analysts are saying:


National Bank: "With the recession over in the labour market and the biggest decrease in the unemployment rate since November 2005, our call for a rate increase by the Bank of Canada in the first quarter of 2010 remains on track." (Globe)

Scotiabank: "...It will feed growth prospects and inflation fears and raise market concerns regarding the BoC's conditional rate commitment." (National Post)

RBC Economics: "...At 8.4% the unemployment still implies considerable slack in this economy. This provides reason for the Bank to maintain its commitment to a 0.25% policy rate until mid-2010." (National Post)

TD Securities: "We believe that it will certainly lead the Bank of Canada to focus on the timing of future interest rate increases set out in its conditional commitment to hold interest rates at the current level until Q2 2010. Nonetheless, while for now we continue to expect the policy rate to remain unchanged until Q4 2010, we think that the risks of an earlier move have increased dramatically." (Globe)

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?

Fixed mortgage rates about to increase

Hello,

Here is another perspective and reason for the mortgage rate increases.

Happy Thanksgiving!
Mark



We have seen some significant increases to bond yields recently with jumps to over 30 basis points (0.30%). Fixed mortgage rates and bond yields are very closely related, so it is very likely we will see some hikes to fixed mortgage rates very soon (if not Tuesday). RBC has already increased their 5 year fixed mortgage rates by 35 basis points and it is likely that we will see other mortgage lenders following suit.


If you have not yet locked in a mortgage rate then you might want to now and ensure you get the lowest rate possible (which of course also affects the maximum mortgage they qualify for).



Lowest rates as of today:


1 year 2.55%
2 year 2.90%
3 year 3.39%
4 year 3.85%
5 year 3.69% (no rate holds, 30 day quick close)
5 year 3.99% (regular 120 day rate hold)
5 year ARM 2.25% (prime)

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?

Downsizing: The Rising Wave in Real Estate

I received this email today and thought I would share some of the thoughts that people have with regards to our local real estate market, the real estate market in Canada and what is happening with the 'baby boomers' in the next decade. It's an interesting set of statistics.

I love the bottom of their email where they talk about the 10 reasons to downsize, I think that 8 of the 10 reasons are either true or apply in my case, but I'm not going anywhere yet! It's a little doom and gloom, Garth Turner like, but interesting perspective and thought I would share it with you.

Enjoy!

Mark

Did you know?

• 22% of Canadians expect their home to be a primary source of retirement income
• 31% of home sales in Canada this past summer were attributable to downsizing
• 60% of Baby Boomers expect to downsize in the next 10 years

Downsizing is a significant and growing segment of the real estate market.

As homeowners approach or enter retirement many of them need to capture the equity value of their family home. These homeowners face a growing risk of seeing their value decline in the coming years as:

• interest rates rise
• the number of family home buyers decreases
• the number of family home sellers increases

Here are some of the areas covered:

• Home prices in the GTA - history, trends, predictions
• Demographic trends and their impact
• Affordability - history, trends, predictions
• Downsizing Case Studies
• The Keys to Retirement Income - Security, Potential, Flexibility

TOP TEN REASONS TO DOWNSIZE IN THE NEXT YEAR

10. There are rooms in your home that you haven’t been in for more than a year

9. Home prices are good now but will likely decline when interest rates rise

8. You can't remember what’s in the boxes in the basement/garage

7. Affordability has never been better and there are a lot of potential buyers out there

6. You are paying to heat/cool/clean at least twice the space you actually need

5. Home prices have risen for 13 consecutive years ... is it time to lock up your gains?

4. Your home equity can earn Guaranteed Income Growth of 7% each year before retirement including 2009!

3. It took more than 12 years for home prices to recover after the last "peak" in 1989

2. The home equity you free up can generate Guaranteed Income for Life with upside potential

And the #1 Reason to Downsize in the next year:

Your “30 something” kids won’t be able to move back in with you!

Dow Jones Closed at highest level in a year

Dow Jones closed highest in a year!
Things are looking up!

5 year mortgage interest rates increasing

RBC announced today that they are increasing their 5 year mortgage interest rate to 5.84% up 35 points from 5.49%. RBC said it would be effective tomorrow, Saturday the 10th of October

It may be a good time to lock in for those that don't want to gamble with rates

My philosophy is the same, go short! Read more about that here:

http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

Short or Long term Mortgage, what is best for you?

All the best and Happy Thanksgiving!
Mark

GTA "Hot" housing market expected to cool by November

This is an interesting perspective. Our local GTA marketplace is very hot right now, not too many listings on the market compared to previous months.

Below is an article summing up our real estate market that I thought was definitely worth passing along:

Hot housing market expected to cool by November

Reuters
TORONTO -- Low financing costs and pent-up demand helped restore Canadian existing home sales to pre-recession levels, but the red-hot pace will likely peter out before the year is out, a report showed on Wednesday.

The Bank of Canada lowered rates to an all-time low with an aim to cushion the Canadian economy from external shocks. Instead, this aggressive easing has "proved to be more of a trampoline for resale housing markets," Toronto-Dominion Bank economist Pascal Gauthier said.

As of August, 50-60% of pent-up demand has been absorbed, and if the current pace persists, the demand will dry up by November, TD estimated in its Resale Housing Market Outlook. A sharp shift in consumer confidence has contributed to the rebound, combining with low and favourable interest rates that made home ownership affordable for many Canadians.

Between 45,000 and 53,000 potential sales late last year failed to materialize because consumer confidence froze up during the worst of the global financial crisis, TD estimated.

No other Canadian economic indicator in the past few months has recovered as strongly, and in fact, home sales have now exceeded pre-recession levels and matched the lofty volumes of 2007, TD said.

"After plummeting by nearly a third in the second half of last year, the seasonally-adjusted level of sales had climbed back by 61% as of August," the report said.

Overall, TD estimates national existing home sales will rise 2.4% to 445,000 units in 2009 from a year earlier, with the average price climbing 2.1% to $310,000. In 2010, sales are seen rising 2.2% to 455,000 units, while prices jump 5%. But in 2011, TD projects eroding affordability will dampen sales but the average price will still add a modest 2%.

TD also looked at nine Canadian cities and their prospects for existing home sales. All cities coast-to-coast were forecast to show gains from this year to 2010, but then retreat the following year.

On Tuesday, TD released a report that suggested the Bank of Canada could raise interest rates sooner and more aggressively than forecast if real estate strength did not cool.

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?