Hello, This is a Summary of changes to mortgage guidelines as per Finance
Minister Jim Flaherty...(effective July 9th, 2012)
1) The maximum amortization period for purchases with less than a 20% down
payment will be 25 years (down from 30 years)
2) Home owners will only be able to refinance their homes up to 80% of the
home's value (down from 85%)
3) The government is also resetting the maximum Gross Debt Servicing ratio
(GDS) to 39% and the Total Debt Servicing ratio (TDS) to 44% (Currently, GDS
does not apply to qualified borrowers with credit scores of 680+) ***see
below for info GDS and TDS
4) Mortgage Insurance will no longer be available of homes over $1 million
(you will need to have at least 20% down payment)
OSFI (The Office of the Superintendent of Financial Institutions Canada is
the primary regulator and supervisor of federally regulated deposit-taking
institutions
Also announced the following changes...
1) The maximum loan to value on home equity lines of credit (HELOCs) is
cut to 65% from 80%
2) The loan to value will be re-calculated upon any refinancing and
whenever the lender deems prudent
3) HELOCs will continue to serve as revolving lines of credit with no
specific amortization period. However, OSFI says lenders must now expect
borrowers to have the ability to fully repay HELOCs over time.
Debt Ratios (GDS / TDS Ratios)
Lenders have long relied on two standard measures of one's "ability to pay"
their mortgage:
Gross Debt Service (GDS): The percentage of the borrower's income that is
needed to pay all required monthly housing costs (mortgage payments,
property taxes, heat and 50% of condo fees).
Total Debt Service (TDS): The percentage of the borrower's income that is
needed to cover housing costs (GDS) plus any other monthly obligations that
an individual has, such as credit card payments and car payments.
The acceptable ratios for both have generally been 32% and 40% respectively.
For people with very high credit scores, GDS requirements are often waived
and the TDS maximum is slightly higher (44% as of January 2011).
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
Friday, June 22, 2012
Thursday, June 21, 2012
GTA REALTORSR Report Mid-Month Resale Housing Market Figures
Below is the mid month report from the Toronto Real Estate board regarding
sales in the GTA
Summary
* Sales activity is flat compared to June of last year
* Sales price was up over 8% from last year
This is the entire report below
GTA REALTORS(r) Report Mid-Month Resale Housing Market Figures
TORONTO, June 18, 2012 - Greater Toronto REALTORS(r) reported 4,597 sales
through the first 14 days of June - a result that was on par with the strong
sales activity reported in the June 2011 mid-month release. While sales were
flat on a year-over-year basis, the total number of new listings entered
into the TorontoMLS system was up by 16 per cent to 8,382.
"Sales growth continued to be much stronger outside of the City of Toronto
in the first half of June. While higher average home prices and slower
listings growth in the City of Toronto likely explain some of the disparity
in sales growth, recent polling suggests that the City of Toronto's Land
Transfer Tax is having a substantial impact on where many households are
looking to buy," said Toronto Real Estate Board President Richard Silver.
"Recent polling indicated that three-quarters of people in Toronto and
surrounding 905 regions who are planning to move over the next two years
said that they are more likely to move outside of Toronto specifically
because of the added upfront costs associated with the Toronto Land Transfer
Tax," continued Silver.
The average selling price for transactions during the first two weeks of
June was $516,834 - up by over eight per cent compared to the average of
$477,025 reported for the first two weeks of June 2011.
"The annual rate of price growth remains very high in the GTA. Increased
listings will result in more balanced market conditions over the next year,
but it will take some time before price growth will moderate to a more
sustainable pace. Right now, months of inventory remains very low from a
historic perspective and will likely not climb back to the pre-recession
norm until 2013," said Jason Mercer, TREB's Senior Manager of Market
Analysis.
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
sales in the GTA
Summary
* Sales activity is flat compared to June of last year
* Sales price was up over 8% from last year
This is the entire report below
GTA REALTORS(r) Report Mid-Month Resale Housing Market Figures
TORONTO, June 18, 2012 - Greater Toronto REALTORS(r) reported 4,597 sales
through the first 14 days of June - a result that was on par with the strong
sales activity reported in the June 2011 mid-month release. While sales were
flat on a year-over-year basis, the total number of new listings entered
into the TorontoMLS system was up by 16 per cent to 8,382.
"Sales growth continued to be much stronger outside of the City of Toronto
in the first half of June. While higher average home prices and slower
listings growth in the City of Toronto likely explain some of the disparity
in sales growth, recent polling suggests that the City of Toronto's Land
Transfer Tax is having a substantial impact on where many households are
looking to buy," said Toronto Real Estate Board President Richard Silver.
"Recent polling indicated that three-quarters of people in Toronto and
surrounding 905 regions who are planning to move over the next two years
said that they are more likely to move outside of Toronto specifically
because of the added upfront costs associated with the Toronto Land Transfer
Tax," continued Silver.
The average selling price for transactions during the first two weeks of
June was $516,834 - up by over eight per cent compared to the average of
$477,025 reported for the first two weeks of June 2011.
"The annual rate of price growth remains very high in the GTA. Increased
listings will result in more balanced market conditions over the next year,
but it will take some time before price growth will moderate to a more
sustainable pace. Right now, months of inventory remains very low from a
historic perspective and will likely not climb back to the pre-recession
norm until 2013," said Jason Mercer, TREB's Senior Manager of Market
Analysis.
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
Monday, June 11, 2012
Current mortgage interest rates in the GTA!
Current mortgage interest rates are excellent in the GTA!
See the rates below for samples of what is posted and what you can obtain,
not much better time than now to get a mortgage!
Mark
Best Rates
Terms Posted Rates Our Rates
6 MONTHS 4.45% 4.40%
1 YEAR 3.20% 2.75%
2 YEARS 3.55% 3.09%
3 YEARS 3.95% 3.19%
4 YEARS 4.64% 3.19%
5 YEARS 5.34% 3.14%
7 YEARS 6.35% 3.99%
10 YEARS 6.75% 3.99%
Rates are subject to change without notice. OAC E&OE
CURRENT PRIME RATE IS 3.00%
PRODUCT RATE
Variable Rate Mortgage: 2.90%
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
See the rates below for samples of what is posted and what you can obtain,
not much better time than now to get a mortgage!
Mark
Best Rates
Terms Posted Rates Our Rates
6 MONTHS 4.45% 4.40%
1 YEAR 3.20% 2.75%
2 YEARS 3.55% 3.09%
3 YEARS 3.95% 3.19%
4 YEARS 4.64% 3.19%
5 YEARS 5.34% 3.14%
7 YEARS 6.35% 3.99%
10 YEARS 6.75% 3.99%
Rates are subject to change without notice. OAC E&OE
CURRENT PRIME RATE IS 3.00%
PRODUCT RATE
Variable Rate Mortgage: 2.90%
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
Tuesday, May 22, 2012
Real Estate Predictions for the GTA marketplace
These are my observations of the current and future GTA and Mississauga Real Estate Marketplace.
Many are predicting a "market crash"
Many have been predicting we are in a bubble in the GTA for about the past 2 years or so. Certainly the market is overheated. There are many reasons for this.
*
Lack of supply and low interest rates have pushed up prices to record highs.
*
There is uneasiness in the economy, especially the USA and global areas.
*
The underlying economy doesn't support the rise in the market, we've drawn the people into the market due to low rates.
*
Consumer confidence is lower and so is the supply of listings, people are feeling a little less confident to move up, so this is the reason that the number of listings is down and has been down since 2009.
*
Once the job market and Europe and USA economies pick up then consumer confidence will improve and then they'll put more homes on the market and we should have a more balanced market.
The condo market is the area that I see softening a little over the next couple of year, many new buildings coming on stream and this may create a bit of a glut of condos on the market - prices for condos are already
softening. Once rates begin to rise, probably not until late next year, first time buyers will not be able to buy as much as they are now and the market should adjust somewhat.
This is what I see for the next 6 months or so:
1.
Prices will rise in the next few months due to high demand and low supply.
2.
Ownership should remain flat and fewer first time buyers on the market as the rates increase along with more listings thus slower price growth.
3.
There are considerable opportunities to purchase for long term price growth in some of the outlying areas, such as Brampton, Milton, Burlington and north Oakville. This would be similar to what we have seen in
Mississauga with price increases from the mid 90's to 2010 or so.
4.
I feel the condominium investor should be very cautious as we may see a pullback in prices which will help stabilize the marketplace.
5.
Thus, I don't see any "crash" in the marketplace, just a softening of prices, but not at least until the 3rd or 4th quarter this year.
I have been uneasy about the marketplace since about 2002 and we continue to see year over year price increases. The average price has increased for 17 years in a row, see the graph
<http://www.mississauga4sale.com/TREBavg1995date.htm> here and here
<http://www.mississauga4sale.com/TREBprice.htm#graph> , this makes me a little uneasy, but the fundamentals of the marketplace and the economy are far different compared to any time in the past.
I hope this helps you with your real estate decisions. You will have to make your own decision based upon your personal situation and how you feel about the marketplace, I know it's not easy.
Maybe you want an over the internet evaluation of your home just to give you an idea of your current value. We can do this with no obligation. Would you like a Complimentary
<http://www.mississauga4sale.com/internet-evaluation.htm> & Quick Over-The-Net Home Evaluation ?
Mark
Many are predicting a "market crash"
Many have been predicting we are in a bubble in the GTA for about the past 2 years or so. Certainly the market is overheated. There are many reasons for this.
*
Lack of supply and low interest rates have pushed up prices to record highs.
*
There is uneasiness in the economy, especially the USA and global areas.
*
The underlying economy doesn't support the rise in the market, we've drawn the people into the market due to low rates.
*
Consumer confidence is lower and so is the supply of listings, people are feeling a little less confident to move up, so this is the reason that the number of listings is down and has been down since 2009.
*
Once the job market and Europe and USA economies pick up then consumer confidence will improve and then they'll put more homes on the market and we should have a more balanced market.
The condo market is the area that I see softening a little over the next couple of year, many new buildings coming on stream and this may create a bit of a glut of condos on the market - prices for condos are already
softening. Once rates begin to rise, probably not until late next year, first time buyers will not be able to buy as much as they are now and the market should adjust somewhat.
This is what I see for the next 6 months or so:
1.
Prices will rise in the next few months due to high demand and low supply.
2.
Ownership should remain flat and fewer first time buyers on the market as the rates increase along with more listings thus slower price growth.
3.
There are considerable opportunities to purchase for long term price growth in some of the outlying areas, such as Brampton, Milton, Burlington and north Oakville. This would be similar to what we have seen in
Mississauga with price increases from the mid 90's to 2010 or so.
4.
I feel the condominium investor should be very cautious as we may see a pullback in prices which will help stabilize the marketplace.
5.
Thus, I don't see any "crash" in the marketplace, just a softening of prices, but not at least until the 3rd or 4th quarter this year.
I have been uneasy about the marketplace since about 2002 and we continue to see year over year price increases. The average price has increased for 17 years in a row, see the graph
<http://www.mississauga4sale.com/TREBavg1995date.htm> here and here
<http://www.mississauga4sale.com/TREBprice.htm#graph> , this makes me a little uneasy, but the fundamentals of the marketplace and the economy are far different compared to any time in the past.
I hope this helps you with your real estate decisions. You will have to make your own decision based upon your personal situation and how you feel about the marketplace, I know it's not easy.
Maybe you want an over the internet evaluation of your home just to give you an idea of your current value. We can do this with no obligation. Would you like a Complimentary
<http://www.mississauga4sale.com/internet-evaluation.htm> & Quick Over-The-Net Home Evaluation ?
Mark
Friday, May 18, 2012
2.99% for 4 Year Mortgage! Mortgage interest rate promotion
I recently was emailed a fabulous mortgage rate promotion. See the rates
below.
Thanks to recent renewed trouble in Europe, we see some new mortgage rate
promotion.
4 year fixed at 2.99%, fully qualified deals only. This promotion is ending
at May 22.
3 year fixed at 2.99%.
Please let me know if you have any other questions or require further
information about this promotion.
Thank you,
Mark
below.
Thanks to recent renewed trouble in Europe, we see some new mortgage rate
promotion.
4 year fixed at 2.99%, fully qualified deals only. This promotion is ending
at May 22.
3 year fixed at 2.99%.
Please let me know if you have any other questions or require further
information about this promotion.
Thank you,
Mark
Friday, April 06, 2012
Latest Toronto GTA real estate marketplace from the Toronto Real Estate Board April 2012
This is a summary of the latest GTA real estate marketplace from the Toronto Real Estate Board
Average price in March as $504,117 up 10% compared to March 2011 and volume of sale are up about 8%
See the graphs at my site
Average price in March as $504,117 up 10% compared to March 2011 and volume of sale are up about 8%
See the graphs at my site
Read the full report below.
GTA REALTORS(r) Report Monthly Resale Housing Market Figures
Toronto, April 4, 2012 - Greater Toronto REALTORS(r) reported 9,690 sales through the TorontoMLS System in March 2012. This result was up by almost eight per cent in comparison to the 8,986 deals reported during the same period in 2011.
"The GTA resale market has not suffered from a lack of willing buyers this year. Buyers have been spurred on by the positive affordability picture brought about by low mortgage rates," said Toronto Real Estate Board President Richard Silver. "The challenge has been a lack of inventory. Many listings have attracted multiple interested buyers. Strong competition has led to annual rates of price growth well above the long-term average."
The average selling price in the GTA was $504,117 in March - up by 10.5 per cent in comparison to March 2011.
"The number of new listings was up last month in comparison to March 2011.
However, based on the historic relationship between price and listings, the GTA resale market should be better supplied. If competition between buyers remains as strong as it is right now, we will almost certainly see an average selling price above $500,000 for 2012 as a whole," said Jason Mercer, TREB's Senior Manager of Market Analysis.
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, March 28, 2012
Mortgage Rates On The Rise
Just as soon as I posted that fixed rates are currently excellent and it's a great time to lock in, then I received the email below that fixed mortgage rates are on the rise!
Could be time to lock in..... read below
Mark
Could be time to lock in..... read below
Mark
_____
From: Mortgage consultant
Sent: Tuesday, March 27, 2012 8:51 PM
Subject: Mortgage Rates On The Rise
Mortgage Rate Bulletin
RBC and TD have announced mortgage rate hikes effective this Thursday March
29th... Other lenders are sure to follow!
Get your applications in now to get your 120 rate holds before rates go up.
10 year fixed rates still available at 3.99% and are looking better and
better right now!
5 year fixed rates still available at 2.99%
If you need mortgage help, please contact me!
Mark
Are rates about to increase? Mortgage Interest Rate outlook
We have seen a price war for 4 year mortgage interest rates for the past couple of weeks. BMO was one of the first out of the gate to offer 2.99% for a 4 year mortgage, the other banks and lenders followed shortly thereafter.
Now you can see 5 and 10 year mortgage interest rates at absurdly low levels.
I've seen 5 year fixed rate mortgages at 3.5% which is unbelievably low.
Fixed rate mortgages are very attractive right now.
I've written many articles about staying with short term mortgage rates at this page:
<http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm>
http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm
My preference for many years has been 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.
Read the article below that just appeared in the POST, it's very interesting what the experts are saying.
Stay Tuned.......
All the best!
Mark
The logic is pretty simple. You hit rock bottom and there is no where else to go but up.
Mortgage rates on terms of five years and 10 years have never been this low. You can go back 50 years and not find a rate of 2.99% from one of the major banks for a fixed-rate product for five years. The 10-year, an almost unheard of length for most Canadians to commit to, has touched down at below 4%. Even sticking it out with a variable-rate product linked to the prime lending rate still looks pretty good with most major financial institutions offering some type of discount off their 3% floating rate. Already there are signs rates could be on the increase. The bond market - which mortgage rates are based on - has been rising fast and the big banks say their most recent specials will come to an end this week. But even with a 50 basis point increase, a five-year fixed closed mortgage of 3.5% is almost unheard of historically. "Everybody is looking at the bottom here and thinking, 'When are rates going to go up?'" .Even among the experts, few foresaw this price war in the mortgage sector. "With the big banks getting very aggressive again, it took a lot of people by surprise," said Mr. Mangaroo. "I think people were thinking the status quo would hold for a while." .He says the last Bank of Canada announcement about the economy had people thinking at some point the overnight lending rate, which impacts the prime lending rate, would go up, but not this year. "Now that people are thinking of early 2013, that has people talking but really that is just so far out says Mr. Mangaroo. "It's really just an abstract concept at this point." Craig Alexander, chief economist with Toronto-Dominion Bank, says he can understand how there might be some fatigue from consumers hearing about rising rates. "Unfortunately, we have been saying for years 'that's it, rates can't go any lower than they are today' and then they are [lower] 12 months later," Mr. Alexander says. .But this time out, he says, it almost seems impossible that rates on a five-year closed mortgage could go lower than the current 3%. "Short of the Canadian economy going into a recession and causing the Bank of Canada to cut rates back to their all-time low, there really isn't an environment that would lead to significantly lower mortgage rates," Mr. Alexander says. "The downside here is extraordinarily limited." The real risk for the consumer might be not locking in right now. While no one is expecting the overnight rate to go up anytime soon - discounts off the prime lending rate might even improve if the economic uncertainty calms in some parts of the world - the 50-year-low rates today could become hard to find. "If the economic forecasters are wrong about the outlook for growth and things turn out better than anticipated, then bond yield will rise, we'll have a steeper yield curve and higher fixed mortgage rates," Mr. Alexander says. "You won't be able to get what is offered today in 12 months time. They could go up half a percentage point or higher." In the interim, Gregory Klump, chief economist with Canadian Real Estate Association, says in terms of profitability, there is room for the banks to go lower on rates, but margins for the banks are so thin he doesn't expect it happen. "We are not out of the woods yet in terms of a clear picture that growth is going to strengthen," says Mr. Klump about the catalyst that could drive up bond rates, which would impact mortgage rates. "My own view is growth may well weaken." He predicts that any rise in rates will happen slowly, which the housing market would more easily absorb. "I do not expect it," Mr. Klump says about the type of interest rate shock that could send housing sales tumbling. Author Garth Turner, a noted pessimist on the fortunes of housing these days, thinks those who want to be in the market for a house should probably be grabbing on to long-term products. He says the banks know the housing market is already shrinking and are scrambling for a larger share of the mortgage market, something that also allows them to cross-sell other products like RRSPs to consumers. "The writing is already on the wall, prices will be declining," Mr. Turner says. "The Bank of Canada will be raising rates." A Bank of Canada hike will make variable rates rise fast, and he agrees the present day rates could look very good in a few years. "If you want to be a homeowner, it is an appealing product. Three or fours years from now, these rates could look absurd. I have no problem with being in real estate as long as it's not the bulk of your net worth. If you are getting into real estate now though and leveraging up, you are going to be unhappy about it," says Mr. Turner, adding the raising rate environment will hurt sales and prices will follow quickly. Don Lawby, chief executive of Century 21, says the rate wars going on right now combined with the unusually warm winter have already boosted housing sales, which could leave little demand left for the spring market. "Interest rates are low and they probably can't go any lower than they are," says Mr. Lawby, who thinks there is not much room for housing prices to go higher. "I looked around and say if the local economy stays good, the market can stay good. But these low rates are very key."
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
Now you can see 5 and 10 year mortgage interest rates at absurdly low levels.
I've seen 5 year fixed rate mortgages at 3.5% which is unbelievably low.
Fixed rate mortgages are very attractive right now.
I've written many articles about staying with short term mortgage rates at this page:
<http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm>
http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm
My preference for many years has been 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.
Read the article below that just appeared in the POST, it's very interesting what the experts are saying.
Stay Tuned.......
All the best!
Mark
The logic is pretty simple. You hit rock bottom and there is no where else to go but up.
Mortgage rates on terms of five years and 10 years have never been this low. You can go back 50 years and not find a rate of 2.99% from one of the major banks for a fixed-rate product for five years. The 10-year, an almost unheard of length for most Canadians to commit to, has touched down at below 4%. Even sticking it out with a variable-rate product linked to the prime lending rate still looks pretty good with most major financial institutions offering some type of discount off their 3% floating rate. Already there are signs rates could be on the increase. The bond market - which mortgage rates are based on - has been rising fast and the big banks say their most recent specials will come to an end this week. But even with a 50 basis point increase, a five-year fixed closed mortgage of 3.5% is almost unheard of historically. "Everybody is looking at the bottom here and thinking, 'When are rates going to go up?'" .Even among the experts, few foresaw this price war in the mortgage sector. "With the big banks getting very aggressive again, it took a lot of people by surprise," said Mr. Mangaroo. "I think people were thinking the status quo would hold for a while." .He says the last Bank of Canada announcement about the economy had people thinking at some point the overnight lending rate, which impacts the prime lending rate, would go up, but not this year. "Now that people are thinking of early 2013, that has people talking but really that is just so far out says Mr. Mangaroo. "It's really just an abstract concept at this point." Craig Alexander, chief economist with Toronto-Dominion Bank, says he can understand how there might be some fatigue from consumers hearing about rising rates. "Unfortunately, we have been saying for years 'that's it, rates can't go any lower than they are today' and then they are [lower] 12 months later," Mr. Alexander says. .But this time out, he says, it almost seems impossible that rates on a five-year closed mortgage could go lower than the current 3%. "Short of the Canadian economy going into a recession and causing the Bank of Canada to cut rates back to their all-time low, there really isn't an environment that would lead to significantly lower mortgage rates," Mr. Alexander says. "The downside here is extraordinarily limited." The real risk for the consumer might be not locking in right now. While no one is expecting the overnight rate to go up anytime soon - discounts off the prime lending rate might even improve if the economic uncertainty calms in some parts of the world - the 50-year-low rates today could become hard to find. "If the economic forecasters are wrong about the outlook for growth and things turn out better than anticipated, then bond yield will rise, we'll have a steeper yield curve and higher fixed mortgage rates," Mr. Alexander says. "You won't be able to get what is offered today in 12 months time. They could go up half a percentage point or higher." In the interim, Gregory Klump, chief economist with Canadian Real Estate Association, says in terms of profitability, there is room for the banks to go lower on rates, but margins for the banks are so thin he doesn't expect it happen. "We are not out of the woods yet in terms of a clear picture that growth is going to strengthen," says Mr. Klump about the catalyst that could drive up bond rates, which would impact mortgage rates. "My own view is growth may well weaken." He predicts that any rise in rates will happen slowly, which the housing market would more easily absorb. "I do not expect it," Mr. Klump says about the type of interest rate shock that could send housing sales tumbling. Author Garth Turner, a noted pessimist on the fortunes of housing these days, thinks those who want to be in the market for a house should probably be grabbing on to long-term products. He says the banks know the housing market is already shrinking and are scrambling for a larger share of the mortgage market, something that also allows them to cross-sell other products like RRSPs to consumers. "The writing is already on the wall, prices will be declining," Mr. Turner says. "The Bank of Canada will be raising rates." A Bank of Canada hike will make variable rates rise fast, and he agrees the present day rates could look very good in a few years. "If you want to be a homeowner, it is an appealing product. Three or fours years from now, these rates could look absurd. I have no problem with being in real estate as long as it's not the bulk of your net worth. If you are getting into real estate now though and leveraging up, you are going to be unhappy about it," says Mr. Turner, adding the raising rate environment will hurt sales and prices will follow quickly. Don Lawby, chief executive of Century 21, says the rate wars going on right now combined with the unusually warm winter have already boosted housing sales, which could leave little demand left for the spring market. "Interest rates are low and they probably can't go any lower than they are," says Mr. Lawby, who thinks there is not much room for housing prices to go higher. "I looked around and say if the local economy stays good, the market can stay good. But these low rates are very key."
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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Friday, March 23, 2012
Mid-month report for March 2012 from TREB Real Estate
GTA REALTORS® Report Mid-Month Resale Housing Market Figures
TORONTO, March 19, 2012 –During the first 14 days of March, Greater Toronto REALTORS® reported 4,215 transactions through the TorontoMLS system, representing a seven per cent increase compared to the same period in 2011. The number of new listings was down by two per cent year-over-year to 6,970.
“Home buyers continue to benefit from the affordable housing situation in the GTA. Immigration to Toronto and surrounding areas adds to the pool of home buyers every year. The economic and ethnic diversity found in the GTA consistently attracts newcomers and foreign investment,” said Toronto Real Estate Board (TREB) President Richard Silver.
The average selling price for transactions between March 1 and 14 was $502,155 – up by more than nine per cent compared to the first 14 days of March 2011. On average, homes sold for 100 per cent of the asking price within three weeks.
“Strong competition between home buyers in many parts of the GTA has resulted in sellers realizing their asking price in a short period of time. The fact that homes are selling for 100 per cent of the asking price, on average, suggests that sellers are very much in tune with the current market situation and know the fair market value of their home,” said Jason Mercer, TREB’s Senior Manager of Market Analysis
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
TORONTO, March 19, 2012 –During the first 14 days of March, Greater Toronto REALTORS® reported 4,215 transactions through the TorontoMLS system, representing a seven per cent increase compared to the same period in 2011. The number of new listings was down by two per cent year-over-year to 6,970.
“Home buyers continue to benefit from the affordable housing situation in the GTA. Immigration to Toronto and surrounding areas adds to the pool of home buyers every year. The economic and ethnic diversity found in the GTA consistently attracts newcomers and foreign investment,” said Toronto Real Estate Board (TREB) President Richard Silver.
The average selling price for transactions between March 1 and 14 was $502,155 – up by more than nine per cent compared to the first 14 days of March 2011. On average, homes sold for 100 per cent of the asking price within three weeks.
“Strong competition between home buyers in many parts of the GTA has resulted in sellers realizing their asking price in a short period of time. The fact that homes are selling for 100 per cent of the asking price, on average, suggests that sellers are very much in tune with the current market situation and know the fair market value of their home,” said Jason Mercer, TREB’s Senior Manager of Market Analysis
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
Average Housing Prices for Major cities across Canada
CMHC published a report showing the average MLS price in each major city in Canada for 2010, see the image below: 
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
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
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