Wednesday, May 12, 2010
Opportunity abounds - long term versus short term mortgage interest rates
Average single family residential price changes from January 2009 to April 2010
Tuesday, May 11, 2010
Short term mortgage rates may be the way to go for now
rates look more attractive.
See the following for best rates.
3-year fixed rate: 3.75%
5-year fixed rate: 4.18%
3-year variable rate: P-0.60% (1.65%)
5-year variable rate: p-0.50% (1.75%)
The spread between fixed rates and variable rates has widened.
If you have not locked into any fixed rates, you may be better off to go
for the variable for now.
If you need any help with your mortgage options , please feel free to
contact me.
Mark
Monday, May 10, 2010
Single family average residential real estate prices in the GTA
Sunday, May 09, 2010
TREB reports sales volume and prices up in April 2010
up about 34% compared to the same month last year.
GTA REALTORS(r) Report Monthly Resale Housing Figures
TORONTO, May 5, 2010 - Greater Toronto REALTORS(r) reported 10,898 sales
through the Multiple Listing Service(r) (MLS(r)) in April, representing a 34
per cent increase compared to April
2009. There were also 20,683 new listings in April - a 59 per cent annual
increase. Both the sales and new listings results amounted to new records
for the month of April under the
current Toronto Real Estate Board (TREB) boundaries.
"The GTA resale market is functioning properly. Sales were high as buyers
continued to take advantage of affordable home ownership opportunities.
Listings grew as home owners reacted
to strong sales and price growth," said Toronto Real Estate Board President
Tom Lebour.
More balanced market conditions will result in sustainable rates of annual
price growth in the second half of 2010."
The average price for April transactions was $437,600 - up 13 per cent
compared to the average of $385,641 recorded in April 2009.
"Home sales continue to be driven by many different segments of the market,
with sales growth for all major home types in both the City of Toronto and
surrounding 905 regions," said Jason Mercer, TREB's Senior Manager of Market
Analysis. "Home sales will remain strong in the second half of 2010, but
will slip from the current record pace as borrowing costs rise."
Tuesday, April 27, 2010
Mortgage interest rates in the GTA - 5 year closed rate at 3.79%
Over the past 4 weeks rates have moved from the upper 3% range to the mid to upper 4% range. These changes are significant.
As of equal significance is one company that I work with called AstrumStar and their rates are still excellent with the AstrumStar 5 year closed rate at 3.79% and the AstrumStar 3 year variable rate at prime minus 0.9% - yes 1.35%.
Yes these rates are available to those who transact through me. Let me know if you are interested and I will send you details.
Thank you,
Mark
For more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com
Thursday, April 22, 2010
Mortgage interest rates, The Bank of Canada and our current GTA real estate marketplace
Houses sales will slow down when interest rates increase.
Many people are hoping that the real estate market slows down, they feel things are too fast and hot and the recent increases in real estate prices have caused more inflation in Canada than the Bank of Canada wanted or anticipated.
The Bank of Canada announced on Tuesday that although they promised to not increase the prime interest rate until July 1 of this year, they said that they may "break that promise" and increase the bank prime rate at the beginning of June. Their reason is that the economy is too hot and the inflation rate is currently too high, above their target inflation rate.
By increasing interest rates, this will increase mortgage interest rates and less people will be able to afford to buy a home so the real estate market will slow down. This is what the Bank of Canada wants to happen and many others want to happen. They feel the inflation rate is getting too high.
When interest rates go up, this always means that people who are barely able to afford a home will not be able to afford a home ( or at least afford less), they will not be able to purchase or will have to purchase at a lower price and this will have a negative ripple effect on the entire marketplace and the real estate market will slow down. Prices may not fall right away, but they will stop increasing and the demand will decrease.
Also, July and August are typically the two slowest months in real estate (next to December) so the seasonal real estate slowdown along with increased interest rates plus the HST coming into effect July 1 will most likely slow our real estate marketplace.
I hope this helps explain things to you! :-))
Thank you,
Mark
Wednesday, April 21, 2010
Number of sales in the GTA is dramatically increased compared to the same period last year
You will also note that the average days on the market is half of what it was a year ago, again, this indicates that the market is very fast right now.
All the best!
Mark
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
Tuesday, April 20, 2010
New CMHC Rules for Self-Employed
New CMHC Rules for Self-Employed Borrowers in effect TODAY
New rules for self-employed borrowers are effective today Friday, April 9th,
2010 for all mortgages insured by by Canada Mortgage and Housing Corporation
(CMHC) and pose new challenges for this category of clients.
*Purchases are only available up to 90% (previously 95%)
*Refinances are only available up to 85% (previously 90%)
*Commissioned sales borrowers are no longer eligible under this program
*A minimum of 2 years consecutive self-employment will no longer be required
*Borrowers must have a minimum of 2 years work experience in the same field
Now, self-employed and commissioned-income borrowers with more than three years in the same business applying for a mortgage, are required to provide traditional proof of income (or "third party validation") through documents like financial statements, T1 Generals, Notice of Assessments and T4s etc.
PLEASE NOTE: Genworth Financial Canada's (GNW) policies remain unchanged and self-employed applicants who have been in business for 2 years or longer continue to be eligible BUSINESS FOR SELF (ALT. A) program that means more Choice & Convenience for your potential clients.
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6 mon 3.85
1 year 2.49
2 year 2.95
3 year 3.29
4 year 4.09
5 year 4.19
7 year 4.95
10 year4.99
Prime Rate 2.25% prime -.50% = 1.75%
* No charge for qualified applicants
* 1st & 2nd Mortgages
* Up to 120 days rate guarantee
* 24Hour Mortgage Approval
* Mortgages on all types of Property (Industrial, Commercial
Residential).
* Up to 7% Cash back for qualified applicants
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Mark
Monday, April 19, 2010
5 year mortgage interest rates on the rise again
interest rate by 1.4% - the slow but steady rise in rates is in progress,
within a few months you can expect posted 5 year rates over 6%
The table below shows what is posted and what is attainable in the
marketplace, OAC of course! :-)
All the best,
Mark
Term 6 Month 1 Year 2 Year 3 Year 4 Year 5 Year 7 Year 10
Year Variable
Rate Prime
Rate
Posted Rates* 5.10% 4.10% 4.25% 5.05% 5.25% 5.85% 6.80%
6.90%
Best Rates* 4.59% 2.65% 2.95% 3.69% 4.09% 4.39% 4.95%
5.19% 1.85% 2.25%