Friday, October 30, 2009

Why dogs do not like Halloween.......

Why dogs do not like Halloween.......
I posted this on my blog because this is just 'too funny'
If you have any other photos of dogs or pets in funny Halloween costumes, please post them here or send me the picture in an email and I'll post it on my blog.
Thanks and Enjoy!

Mark































































I've added a few more that people have just sent me!
















Current Mortgage interest rates

These are the current posted and 'best' mortgage interest rates in the GTA
Please let me know if you need a mortgage broker contact, just email me.
Thanks
Mark

TERMPOSTED "BEST" RATES*
6 Month 4.60%3.65%
1 Year3.75%2.66%
2 Year4.05%3.05%
3 Year4.60%3.47%
4 Year5.29%3.89%
5 Year5.78%3.99%
7 Year6.60%5.10%
10 Year6.70%5.20%
Variable Rate2.15%
Prime Rate2.25%
* Rates may vary provincially and are subject to change without notice OAC.
Rates Last Updated: Thursday, October 29, 2009

Wednesday, October 28, 2009

How can Fixed rate mortgages increase when variable rate drop?

Hello
This was a great article that I received and thought I would pass along to you. It discusses why the short and fixed rates can be going in opposite directions at the same time.
Intuitively, this does not make sense, but once you read the article below, you will understand.
If you don't know whether to go long or short term, read this article:
All the best,
Mark
How can fixed mortgage rates be going up when variable rate is coming down?
And how do you choose whether to go short or long term on your mortgage when it comes up for renewal?


Now just imagine the family dinner conversation where your brother or sister declares utter confusion at how the prime rate could drop on the same day that rates went up for fixed mortgages. This just doesn't make sense... or does it? Let's clarify how fixed-rate and variable-rate mortgages are priced and you'll see the difference.


Variable rates are tied to your bank's prime rate, which is based directly on the Bank of Canada rate. The Bank of Canada is our central bank, operating at arm's length from the federal government. The central bank uses its rate as a tool to achieve the goals of "Low and stable inflation, a safe and secure currency, financial stability, and the efficient management of government funds and public debt." Our central bank sets the trend for short-term interest rates and has a direct impact on short-term rates for mortgages and lines of credit, as well as rates paid on deposits and investment certificates.


Fixed-term rates, such as long-term mortgage rates, by contrast, are based on the bond market. Generally, a bond is a debt with a promise to repay the principal of that debt, along with interest. Bonds are issued by governments and large businesses. We've all heard of Canada Savings Bonds, right? And they are just one type of bond. The "yield" of the bond is the annual rate of return, expressed as a percentage. Bond yields can be volatile and fluctuate in response to various political and economic factors, such as inflation and unemployment figures, and developments in the stock markets. They are increasingly affected by global forces.

Long-term mortgage rates (3 years and longer) are based on bond yields, but are less volatile because financial institutions absorb the daily market fluctuations in order to create a more stable rate environment for their customers. Generally speaking, higher bond yields increase funding costs for banks, which in turn leads to increased long-term fixed rates.

Conversely, lower bond yields lower banks' funding costs and lead to lower long-term mortgage rates.

So, short-term rates move with the Bank of Canada's needs, while longer-term rates are tied to the bond market. The Bank of Canada can influence long-term rates, but it has no direct control over them. This difference in how rates are set is the reason we sometimes see short-term and long-term rates moving in unison, while at other times they diverge.


If it seems difficult to choose between a fixed and variable or long and short mortgage, you don't necessarily have to choose. Perhaps the easiest and best solution is to break your mortgage into pieces and diversify your borrowing across short and long terms. This is mortgage "laddering," a concept Canadians know and use to stagger their GIC maturities for diversification, but which surprisingly few of us use for our mortgages.

Diversification is an important principal that applies as much for borrowing as it does for investing. By blending different types of mortgages and staggering maturities, you can diversify your interest rate risk, and perhaps minimize your interest costs.

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

Tuesday, October 27, 2009

bank of Canada hold the line on the current interest rates

The Bank of Canada continues to say they will hold the line on the current interest rates. Thsi is very good news for buyers and investors, real estate should continue to do well in this climate of low interest rates.

Entire press release is below

All the best,
Mark

Bank of Canada repeats pledge on rates

OTTAWA (Reuters) - The Bank of Canada repeated on Tuesday a conditional pledge to keep interest rates steady through mid-2010, saying the Canadian dollar's strength would more than fully offset favorable developments since July.

Governor Mark Carney, in opening remarks to the House of Commons finance committee, said recent indicators point to the start of a global recovery and that a recovery is under way in Canada following three consecutive quarters of sharp contraction.

He also repeated that the central bank has "considerable flexibility in the conduct of monetary policy at low interest rates," language that means that the bank could, if necessary, engage in quantitative easing, essentially printing money.
Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Matrimonial Separations and selling Real Estate for residential transactions

The information below was forwarded to me and I thought you may find it of interest.
Thank you,
Mark

When acting for separating spouses on the sale of a matrimonial home where only one of the spouses is on title be sure to confirm the status of the marriage before the agreement is executed.

In the event the spouses have been living separately before the agreement, and a formally executed Separation Agreement is not in place, the consenting spouse (i.e. the non-titled spouse) must sign the consent clause. This is because he/she still retains a right in the property as it was a matrimonial home.

By ensuring that the spouse signs consent you potentially eliminate contention or backlash from unresolved family law matters to the real estate transaction.

Generally speaking always remember to ask if your client has a spouse who will be consenting to the agreement as supposedly “happy” families have been known to contend a sale on the grounds of non-execution of the consent clause.

The OREA form of Agreement of Purchase and Sale contains the Family Law Act Warranty. Once you become aware that consent is required remember to have the Spousal Consent section at the end of the agreement executed by the spouse before an eligible witness.

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

Monday, October 26, 2009

What is best? The stock market versus real estate investing

Hello,

The bull market has been running up the high Dow Jones and TSX and other markets for some time now and many people feel they need some pessimism in order to cool it down a little since the rise in the markets was too high and over a short period of time too fast for most of the market to absorb the huge influx of money.

Maybe it's time to sell your stocks or mutual funds and sit on the sidelines for a while.

Only time will tell.

I continue to feel that real estate is a very good long term leveraged investment, tenant pays off the property, you get a tax write off.

Here is a good "real life" example of how you can be financially secure when you are 60 years old.

Imagine you bought just one townhouse investment property when you were 40 years old for $250,000

You put $25,000 downpayment and your mortgage and tax payments were $1500 per month for 20 years and the rent payments were $1400 per month for 20 years

It may cost you $100 per month out of your pocket plus another $100 per month for regular maintenance and incidentals, thus $200 per month or $2400 per year but you got $1000 of that back on your taxes so it really cost you $1400 per year or $28,000 over the 20 years and ...

Imagine you are now 60 years old and you say, honey, we need some money to travel and buy things for our children and ourselves and enjoy life since we are now 60 and you sell that investment property for at the least $300,000


Your adjusted cost base, (your total cost of your investment property) is initial cost plus additions which is about $284,000 (250000+28000+4000 land transfer tax and legal fees to buy and sell it) less costs when you sell equals a capital gain of $16000 which you would pay about $2000 income tax so now you have $288,000 EXTRA cash to spend on you and your family for 20 years of owning that investment property, piece of cake!

This is assuming that the property value increases only 20% over 20 years. If history repeats itself, then the property should at least double if not triple in value in 20 years, but let's be super-conservative with our estimates and say it doubles, even with capital gains tax on half the profit you would still end up with about $455,000 (250000+250000 less about $45000 capital gains tax)

Now, and here is the kicker, if you bought two properties at 40 and did the same thing you would end up with $910,000 in your bank account at age 60

Almost $1MILLION

It does not matter how much inflation we have over the period from now until 20 years from now, $910,000 in your bank account is still almost a million dollars no matter how you look at it

If I had $910,000 today versus $910,000 back in 1989 I would still have a heck of a pile of money and freedom to do the things I want to do, inflation or not.


1989 was not that long ago, so 2029 is not as far in the future as it seems, it will be here for you sooner than you think and if you don't start doing something about it now, you won't have the $910,000 in your bank account or anything for that matter in 20 years from now

You must take some action, get off your butt and do something about it today. Beg or borrow that $25,000 today, buy that townhouse today for $250,000 and sit on it for a measly 20 years, only 240 months and you are done. If you can do it and surely if you can purchase two investment properties now, you'll be set for the balance of your life

I'll even make it easier for you, buy one or two properties as I have outlined above and then let me manage them for you for a small fee and you can literally sit back and enjoy the benefits of your long term investment without lifting a finger for the next 20 years. Want to know more about property management?

Sound like a plan for you? Then let's just do it!

http://www.mississauga4sale.com/property_management.htm

I wish you All the Best to you and your family!
Mark


Sunday, October 25, 2009

Rental Properties in Mississauga and the GTA

I was asked:

Hi there,

Do you update your rental list regularly on your website? I have been back many times to check but everything listed says it is already rented. Please advise how often this is updated so that I know when to check

Thanks

L.

Hi L.
Yes, I update it all the time. You must be going to an older page.
You need to browse to this page http://www.mississauga4sale.com/listings.htm and near the bottom are the rentals
or you can click the link near the top that says
Are you looking for Rental Listings?
and this will automatically take you to the bottom of the page referenced at
I hope this helps.
What are you looking for, I have 4 rental properties right now available
Thank you,
Mark

Saturday, October 24, 2009

What's a Den?

Peopole ask me
Hi:
This is going to sound weird, but what is a den? And does it have a door that gives you privacy?
G.
thankyou
Hi G,
Yes, usually a den has a separate door to it. It's a separate room with a door and NO closet, that's why they call it a den rather than a bedroom. Many dens are open, people close them off with one wall, add a door and it's a den or another bedroom.
Hope this helps,
Mark

Friday, October 23, 2009

Leasing and new to the country, how can you secure a tenancy?

I have many requests for rental properties from people who are new to the country. They are new immigrants and want to lease for one year, and people ask me how I would handle this because they have no Canadian credit check (none), employment (none), but they have enough money to rent for the next for year
My answer is in these cases tell these people that they will probably have to put up first and maybe last 3 or 4 months upfront to secure a rental
I've had some pay for the entire year upfront

You could also have a Guarantor , someone who lives here now
Hope this helps
Mark

Thursday, October 22, 2009

Mississauga perspective on Real Estate Finance and Mortgages

This was an interesting article about mortgages and real estate financing,
Enjoy! Mark


Subject: Mortgage and Real Estate Finance

I enclose details of our report on mortgage and real estate financing.

US Mortgages, the largest fixed income market in the world, have recently
turned into the latest distressed sector, in the midst of declining house
prices, deteriorating fundamentals, and limited liquidity.

Understanding the nature of this complex structured market, and appreciating
its subtleties, is a prerequisite for taking advantage of the current
dislocation, while avoiding its pitfalls.

Although the difficult environment is likely to continue, everyone who has
been in the market through its gyrations knows that times of trouble can
often spell opportunity for the smart investor.

There are Mortgage and Real Estate Finance books on the market that can give
you an in-depth overview of both the primary and secondary mortgage market.

They will provide a much-needed analysis of the latest innovations in the
market, and serve as a crucial guide to taking advantage of the current
environment.

These books cover areas such as:

- History of the Market from the Great Depression till today
- Loan Origination and Underwriting
- Structures used in Securitisation and Arbitrage
- Agency Mortgage Market and CMOs
- Alt-A and Sub-prime Market
- Non-traditional Mortgage Products
- Real Estate Indexes and Trading
- Modelling of Prepayments and Credit
- New Resources for Mortgage Analytics
- Risk Management of Mortgage Securities
- Investing and Opportunities in Mortgages
- Rating Agencies' Perspective
- Servicing in a Distressed Environment
- Regulatory and Policy Issues

If you want more information on this or other books like this, please send
me an email.

Thank you,
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

<http://www.mississauga4sale.com/selling-process.htm> Thinking of Selling?
Best Mortgage Rates
<http://www.mississauga4sale.com/mortgage-rates-mark.htm> Current Home
<http://www.mississauga4sale.com/TREBprice.htm> Prices Search MLS
<http://www.mississauga4sale.com/mls-ca-real-estate-mississauga.htm>
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Providing Full-Time Professional Real Estate Services since 1987
* BUS 905-828-3434
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<mailto:mark@mississauga4sale.com?subject=Mississauga Real Estate
Information Request>
Website <http://www.mississauga4sale.com/index.htm> :
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* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary
<http://www.mississauga4sale.com/internet-evaluation.htm> & Quick
Over-The-Net Home Evaluation ?
* Power of Sales and Foreclosures
<http://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
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<http://www.mississauga4sale.com/TREBavg1995date.htm>
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Wednesday, October 21, 2009

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

<http://www.mississauga4sale.com/selling-process.htm> Thinking of Selling?
Best Mortgage Rates
<http://www.mississauga4sale.com/mortgage-rates-mark.htm> Current Home
<http://www.mississauga4sale.com/TREBprice.htm> Prices Search MLS
<http://www.mississauga4sale.com/mls-ca-real-estate-mississauga.htm>
Newsletter
<http://www.mississauga4sale.com/newsletter/latest_newsletter.htm>
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
* E-MAIL <mailto:mark@mississauga4sale.com?subject=Mississauga Real Estate
Information Request> : mark@mississauga4sale.com
<mailto:mark@mississauga4sale.com?subject=Mississauga Real Estate
Information Request>
Website <http://www.mississauga4sale.com/index.htm> :
<http://www.mississauga4sale.com/index.htm> Mississauga4Sale.com

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary
<http://www.mississauga4sale.com/internet-evaluation.htm> & Quick
Over-The-Net Home Evaluation ?
* Power of Sales and Foreclosures
<http://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
<http://www.mississauga4sale.com/popupquestion.htm> Real Estate Newsletter
sign up
* See seasonal housing patterns
<http://www.mississauga4sale.com/TREBavg1995date.htm>
* Would you like me to send you a 2009 Calendar
<http://www.mississauga4sale.com/Calendar-Order-Form.htm> ?

Tuesday, October 20, 2009

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:
<http://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm>
Homes for Sale

* Interest <http://www.mississauga4sale.com/rates.htm> Rates

* Power of Sale Properties
<http://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm>

* Price <http://www.mississauga4sale.com/TREBprice.htm> Trends

* or Search the MLS
<http://www.mississauga4sale.com/mls-ca-real-estate-mississauga.htm> 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

<http://www.mississauga4sale.com/selling-process.htm> Thinking of Selling?
Best Mortgage Rates
<http://www.mississauga4sale.com/mortgage-rates-mark.htm> Current Home
<http://www.mississauga4sale.com/TREBprice.htm> Prices Search MLS
<http://www.mississauga4sale.com/mls-ca-real-estate-mississauga.htm>
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
* BUS 905-828-3434
*mark@mississauga4sale.com
* Website : <http://www.mississauga4sale.com/index.htm>
Mississauga4Sale.com

* Thinking of selling in the next 3 to 6 months? Would you like a
Complimentary <http://www.mississauga4sale.com/internet-evaluation.htm> &
Quick Over-The-Net Home Evaluation ?

* On-Line <http://www.mississauga4sale.com/popupquestion.htm> Real
Estate Newsletter sign up

* See seasonal housing patterns
<http://www.mississauga4sale.com/TREBavg1995date.htm>

<http://www.mississauga4sale.com/Power-of-Sale-Bank-Foreclosure.htm> Homes
for Sale

Saturday, October 17, 2009

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


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.

Friday, October 16, 2009

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

Wednesday, October 14, 2009

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

Tuesday, October 13, 2009

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

Monday, October 12, 2009

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!

Sunday, October 11, 2009

Dow Jones Closed at highest level in a year

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

Friday, October 09, 2009

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