Happy New Year!

Happy New Year and all the best to you and your family in 2010!

Mark

CMHC Reports on GTA housing starts

This graph and text shows that the housing starts in the GTA were up for
most of 2009 and down in November.

New Home Market

Housing Starts Move Lower in

November

Total housing starts in the Greater Toronto Area (GTA) fell to 2,514 units
in November, following three straight months of increases.

Starts so far this year are down by 40 percent compared to the same period
last year, but have shown improvement in the second half. Last month,
single, semi and row starts each rose to their

highest level this year. As a result of the increased demand for low-rise
housing, construction in areas such as Vaughan and Brampton has improved the
most.

The decline in November came as a result of fewer apartment starts, which
tend to show volatility from month-to-month.

Nonetheless, the trend has been moving higher since May and a rebound in new
home sales this year point towards higher starts as we move into 2010.

Almost time to lock in your mortgage

Take a look at this graph showing the current and projected interest rates in Canada. If you have any doubt, read some of the recent Bank of Canada's announcements on interest rates. It's almost a sure thing that rates will begin to increase in the middle of 2010 and significantly over the next year after that.



Good long range planning will certainly help you with your future!



This goes against what I have written many times in the past. I've always recommended going short term on your mortgage. Once we come out of this recession and the economy starts to improve, rates will increase and we may never see these low rates again for many decades to come. It could be time to lock in for 5, 7 or even 10 years at the current rates to take advantage of these all time low mortgage interest rates



Thanks

Mark

US Housing Market has reached bottom!

The US housing market seems to have hit the bottom and will slowly recover, finally!

This is another feel good report from RBC

Bottom Reached in Housing

U.S. home sales got a lift from the government’s first-time homebuyers’ tax credit and record low mortgage rates.

Sales of both new and existing homes are running 31% higher than their recent low, albeit 25% slower than their peak pace.

This increase combined with sharply lower housing starts has reduced the inventory of unsold homes significantly. Price increases so far have been limited, with the average still about 20% lower than peak levels.

The outlook for real estate remains murky given the backlog of foreclosures and strong increases in the number of homeowners who are delinquent in making their mortgage payments.

The government’s tax credit was extended until the end of April and the base of those who qualify broadened out. With interest rates remaining low, we expect that the pace of activity will gradually pick up but expect a relatively tame recovery for this sector during the forecast period.

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 2010 Calendar?

2010 is shaping up to be a great year, from RBC

RBC is now reporting that there will be good growth now that 2009 is nearly behind us. This has been one of the hardest years since the early 90's recession and in some cases harder than the early 80's recession.

2010 may be a great year, hold on for the ride.

Enjoy the article below.
Mark

New beginnings

Turning the page on 2009 will be done with great relief almost everywhere in Canada. The past year has been, by far, the toughest since the early 1990s recession and, in some cases, the early 1980s recession. Hardship was evident from coast to coast, even in parts of the country, such as Alberta, that were previously considered almost bullet-proof.

Perhaps more importantly, however, will be the full force of fiscal and monetary stimulus kicking in. Nearly all governments at the federal, provincial and municipal levels have initiated substantial infrastructure spending programs and these will be in high gear during the year ahead.

In most cases, although not all, 2010 will be the peak of stimulus spending.

The easing of monetary policy is already having a visible impact – most notably in housing resale markets across the country – and should continue to do so despite our expectation that the Bank of Canada will gradually take its feet off the gas pedal starting mid-year. Extremely low mortgage rates have been key to the spectacular rebound in housing resale activity in every province since early 2009.

The precipitous decline in activity that started late in 2008 plunged a number of provinces – including Ontario, Alberta and British Columbia – into a deep slump through the better part of the year, which reverberated loudly in regional job markets.

The ranks of the unemployed swelled and unemployment rates surged broadly, reaching the highest levels since the 1990s in Ontario and Alberta.

While many challenges will remain, 2010 promises a widespread turnaround in economic performance, albeit a modest one at first. A more sanguine global context will sharply contrast with the meltdown on the world stage that took place in 2008 and early 2009. With the financial crisis behind us and the U.S. economy on the mend, factors “external” to the provincial economies are expected to contribute positively to growth again.

In turn, this housing resurgence should be seen as evidence that consumers are feeling more upbeat even in areas of the country such as British Columbia, Ontario and Alberta where the recession caused substantial damage.

The price tag for the fiscal stimulus is enormous – huge budget deficits.

Collectively, the provinces are projecting shortfalls totaling $38.2 billion in the 2009-10 fiscal year and at least $30.2 billion in 2010-11 (with two provinces not providing estimates), both records in terms of value. However, relative to GDP, the deficits will be modestly milder than the peaks recorded in the early 1990s.

While running up huge budget shortfalls might cause some discomfort, the alternative was even less attractive given the severity of the economic downturn. Nonetheless, returning to balance during the medium-term will be a challenge involving difficult choices. ECONOMICS I RESEARCH

In this update, there is little change to the big picture from our September Provincial Outlook: the contraction in activity is still seen to be widely spread in 2009 among provinces (with Manitoba and Nova Scotia the only exceptions)

and the expected recovery to be equally generalized in 2010.

On the upside, there have been some upward revisions to New Brunswick and Nova Scotia in both 2009 and 2010 (Nova Scotia is now projected to be flat in 2009), and Quebec and Manitoba in 2009.

In this report, we are also introducing forecasts for 2011, which generally depict provincial economies strengthening further. The western part of the country – led by Saskatchewan – is generally expected to grow faster than the national

average of 3.9% with the exception of British Columbia, which will be feeling some post-Olympics moderation.

However, we have made minor revisions to some provincial forecasts. The most significant change has been for Newfoundland & Labrador, where longer-than-expected production shutdowns in the mining sector have prompted us to deepen the real GDP decline in 2009 by one percentage point to 4.5% and to bump up growth slightly in 2010 to 2.4% from 2%.

Smaller downward revisions have also been made to Alberta (to reflect weaker-than-expected momentum at this stage) in both 2009 and 2010, Saskatchewan in 2009 (in light of the dramatic drop in potash production) and Ontario in 2009 and 2010 (a larger-than-expected decline in the second quarter of 2009 and slightly more subdued recovery in 2010).

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 2010 Calendar?

Is it Time to Lock into Long term mortgage interest rates?

The question of whether to lock into the current low mortgage interest rates or continue to stay short term is a question that I often get asked.

The answer depends upon many factors including your ability to tolerate risk.

I've written many times in the past that the best route was to go short term on your mortgage, for at least the past 20 years or so. Mortgage rates are predicted to increase beginning about the middle of 2010 and some are predicting that the Bank of Canada will increase the prime rate by as much as 2.75% over the period from the middle of 2010 to the end of 2011 If this happens, then it's likely mortgage interest rates will also increase by about the same or even more than 3% over the same period.

This would indicate with almost certainty that you should lock into long term mortgages. BUT, this is not necessarily true. Read more at this link

http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm#update2009

I wish you and your family a Merry Christmas and all the best in the New Year!
Mark

Rental Market Conditions Soften reports CMHC

This is the latest report from CMHC on rental condtions in the GTA

Rental Market Conditions Soften

The Greater Toronto Area (GTA) rental market experienced softer conditions in 2009. The average vacancy rate for purpose-built rental apartments rose by a full per centage point this year to 3.1 per cent. Several demand and supply factors contributed to the higher vacancy rate, including a rebound in homeownership demand, youth job losses, moderate immigration, more purpose-built rental apartments and a greater number of condominium apartment completions.

Demand Factors

Ownership Demand Rises

A rise in homeownership demand this year has reduced demand for rental accommodations. After starting off the year slow, sales levels in the GTA rebounded quickly over the spring and summer. Sales in both the existing and new home markets will surpass 2008 levels. For the most part, the past decade has shown us a positive relationship between homeownership demand and rental vacancies – when sales go up, vacancies rise as well.

A major reason for the shift towards owning this year is due to improved affordability conditions. Thanks to very low borrowing costs, the average monthly mortgage payment for a home in the GTA is down compared to 2007 and 2008. This has reduced the fi nancial commitment for households to move from renting to owning this year, prompting more renters to make their fi rst home purchase.

Information gathered from CMHC’s Renovation and Home Purchase Survey confi rms that a greater number of fi rst-time buyers are entering into homeownership as a result of the improved affordability conditions. First time buyers represent 57 per cent of intending purchasers this year versus a 33 per cent share that bought in 2008.

Younger Workers Lose Jobs Employment losses this year have mostly affected younger workers.

Since the average age of a fi rst-time buyer in Toronto is approximately 35, rental demand is largely driven by the under 35 workforce. Census data indicates that a quarter of younger workers in Toronto are employed in the manufacturing and retail trade sectors. The manufacturing sector has shed nearly 75,000 jobs this year while employment within the retail trade sector has been trending down for some time.

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 2010 Calendar?

GTA Toronto Apartment Vacancy Rate CMHC

This is the latest information from CMHC on apartment vacancy rates in the GTA

Highlights

􀂄 The average apartment vacancy rate in the GTA increased to 3.1 per cent in 2009.

The average fixed sample rent for a two-bedroom apartment rose by 2.1 per cent.

􀂄 Renter demand moderated due to improved homeownership affordability and a soft youth labour market.

􀂄 The vacancy rate will edge up to 3.3 per cent next year as improvements in renter demand will be outweighed by a rise in rental supply.

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 2010 Calendar?

Wishing You and Yours a Merry Christmas!

Wishing You and Yours a Merry Christmas!

Memories of Days Gone By!

Coca Cola's Famous Santa
Drawn by Haddon Sundblom in 1949

All the Best!

Mark

RBC reports that Ontario is looking forward to improving economy

This is the latest report from RBC and they are bullish for the prospects for the Ontario economy in the upcoming quarters
Time will tell!
Enjoy this article,
Mark

Ontario — Looking forward to sunnier days

The upside of having been knocked down by a very tough recession is that things can only get better! On that score, Ontario’s economy can indeed look forward to 2010 after the annus horribilis it has endured in 2009.

Growth is expected to make a return to the province with the help of recovering U.S. demand and still highly simulative fiscal and monetary policy in 2010. Yet, the pace of recovery is most likely to be restrained, at least in the early going, given

the amount of restructuring that will continue to take place, especially in the hard-hit manufacturing sector. Overall employment gains are also likely to be on the moderate side as firms will want to use their current workforce more fully before expanding payrolls. Real GDP and employment in the province are forecast to grow by 2.4% and 1.1% in 2010, respectively, which would be slightly below the national average. In the case of employment, the expected gains would not make up

for the substantial losses (245,000) during the recession until sometime in 2011.

There is evidence that Ontario’s economy has already begun to turn the corner.

After a near-death experience during the first half of 2009, the all-important automotive sector has sprung back to life since summer – thanks in part to the U.S. “cash for clunkers” program that temporarily propped up car sales south of the border.

Although still facing many obstacles, this sector is expected to continue to heal in the year ahead. The housing sector has shown signs of vigour for the past several months, most clearly in the resale market – where activity is back in record territory – but also to a lesser degree in home building.

Driven by some improvement in motor vehicle sales, retail sales have trended higher since about spring after plunging late in 2008. The earlier deterioration in the labour market appears to have stabilized, with the jobless rate no longer surging and even easing a little since mid-summer (although remaining historically high).

Finally, a significant boost to non-residential construction is being felt with public infrastructure spending kicking into high gear. This spending is expected to reach its cruising speed in 2010.

The price for fiscal stimulus, however, is the return of government deficits. In Ontario’s case, the deficit for the 2009-10 fiscal year is now pegged at $24.7 billion, an all-time record for the province. With shortfalls in the following two years also revised higher to $21 billion and $19 billion, respectively, the task of balancing the provincial books within the next five to six years will be challenging and will require some element of fiscal restraint once the economy is back on track.

Partly offsetting any negative impact in the medium-term will be the benefits of implementing the Harmonized Sales Tax (HST) on July 1, 2010.

Although the HST will result in certain currently exempt products and services being taxed, moving to a value-added tax structure will make the tax system more economically efficient and will improve the competitiveness of Ontario businesses by lowering the cost of doing business in the province.

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 2010 Calendar?

Real Estate has helped Canada out of the recession

This is another good summary from REMAX regarding why Canada has rebounded from the recession with such quickness and apparent ease.

Enjoy!
Mark

Amid one of the worst recessions since the Great Depression, the one safe harbour proved to be housing. Not stocks. Not bonds. Real estate.

Why? The answer is really quite simple. Canadians believe in real estate.

Housing has proven itself a resilient and tangible investment that provides both a hedge against inflation and long-term appreciation. Buyers demonstrated their commitment en masse in 2009-taking advantage of rock-bottom interest rates and greater affordability levels-to drive housing sales and/or average prices to new heights. This year's real estate performance has been nothing short of remarkable.

The surge in sales has allowed residential real estate markets to play a key role in leading Canada out of the downturn. It is estimated that a total of $46,400 in ancillary spending are generated by the average housing transaction in Canada. With 465,000 resale homes expected to change hands by year-end 2009, that represents a $21.5 billion boost to the economy-not to mention the countless jobs and tax revenue housing supports. Going forward, the real estate sector is expected to have an even greater impact.

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 2010 Calendar?

RBC reports that the US economy has also turned the corner

Similar to Canada, RBC is now reporting that the US economy has turned the corner and is on the road of recovery, let's hope!
Mark

U.S. Economy Turns the Corner

The U.S. economy grew at a 2.8% annualized pace in the third quarter, marking the first increase in real GDP after a year of quarterly declines.

Some of the increase was directly attributable to the government’s Car Allowance Rebate System (also known as the cash for clunkers program), which bolstered spending on autos in the quarter.

The strong pace of auto purchases will likely not be sustained in upcoming quarters; however, retail activity continued to firm up in October and November, suggesting that consumers have come out of hiding.

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 2010 Calendar?

The R word is back, this time it's recovery!

RBC reports that the new R word is recovery, not recession
they are reporting that many aspects of our economy and many sectors will continue to grow in 2010
a positive report indeed,
Enjoy!
Mark

Recovery — The New R-Word

• 􀁓 Forecasters revise up projections for world growth in 2010.
• 􀁓 More stable financial market conditions and an improvement in economic indicators support forecast upgrades.
• 􀁓 Easy monetary policy and fiscal support to continue in 2010.
• 􀁓 U.S. housing market turns the corner as low mortgage rates and tax rebates stimulate demand.
• 􀁓 Pace of U.S. job cuts slowing, but payrolls still falling; unemployment rate near 26- year high.
• 􀁓 Sub-par consumer recovery expected as households repair balance sheets and income gains fall short.
• 􀁓 Businesses pulled back on capital investment, but improving credit conditions and lower borrowing costs to support growth in 2010 and 2011.
• 􀁓 U.S. inventory correction during the recession sets stage for rebuilding to occur over the next two years.
• 􀁓 U.S. real GDP growth to average 2.5% in 2010 and a stronger 3.4% in 2011.
• 􀁓 Fed to wait until recovery has proven to be durable before raising the funds rate.
• 􀁓 Canada's economy struggles to climb out of recession.
• 􀁓 Bank of Canada keeps policy stimulative and commits to holding rate at low level until the end of Q2-2010.
• 􀁓 Federal government pours on fiscal stimulus.
• 􀁓 Low rates spur a rebound in the housing market with sales and prices surpassing prerecession peaks.
• 􀁓 A strong currency and improved access to financing sees corporate Canada boost investment.
• 􀁓 Trade sector to weigh on the economy in 2010 as import demand beats exports; but, tide to turn in 2011 as the U.S. economy gains momentum and demand for commodities rises.
• 􀁓 Canada's recovery to build momentum with real GDP growth of 2.6% in 2010 and 3.9% in 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

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 2010 Calendar?

RBC reports Canada at the end of the great recession

RBC reports Canada at the end of the great recession

This is the latest from the RBC on our recession, or at least the end of it. This should come as good news. It's been about 14 months since our market entered the recession

The end of the great recession


Through the ups and downs in the economic numbers, one point is becoming increasingly clear — the great recession of 2008-2009 has come to an end. Most major economies we track have posted at least one positive quarterly growth rate with the lone holdout — the United Kingdom — posting another decline in the third quarter but on course to post a decent-sized gain in the final quarter.

However, the recovery so far has come in on the soft side as the unravelling of financial market leverage continues and economies grapple with high levels of unemployment. The enormous amount of stimulus coming from low interest rates and government spending will support an increase in momentum in 2010 but untillabour market conditions improve, central banks are likely to keep
conditions very accommodative.

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 2010 Calendar?

RBC reports that Canadian Investors still have the jitters

RBC reports that Canadian Investors still have the jitters

RBC reports that investors in Canada still have the jitters. I am one of those, moved all of our rsp's out of the markets into a market linked GIC, now we are guananteed to get our money back in the event that the markets tank and we will get 40% of any improvement in the markets. I guess I'm just getting too close to retirement to take chances with my rsp's

Mark

Investors still have the jitters

Investors appear to be buying into the thesis that the global recession is a thing of the past.

However, they remain very cautious because the economic rebound is proving to be less vigorous than previous recoveries. Any dose of poor financial market news invariably leads investors to scale back their risk positions. As a result, global government bond markets continue to perform well.

Yields on short-term U.S. Treasury bonds stand near record lows, while 10-year rates have fallen back after rising this summer. This pattern was mirrored in the other major markets that we monitor, with central banks expected to hold policy rates low until a durable economic recovery is under way.

We expect rates will remain at extraordinarily low levels for the first half of 2010 and then gradually increase as central banks begin the long process of returning monetary policy to a neutral stance.

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 2010 Calendar?

Canadian Mortgage Interest rates are still expected to stay low well into 2010

Canadian Mortgage Interest rates are still expected to stay low well into 2010

The interest rates in Canada are expected to stay low at least for the first half of 2010

Bank of Canada expects to increase rates in the second half of 2010

Good news for prime linked mortgages and loans!
Mark


Interest rates “lower for longer”

Our forecast that both Canada and the United States will experience sub-par recoveries means that interest rates will remain relatively low. We forecast that short-term interest rates will start to rise in the second half of next year as central bank rate increases become imminent.

In 2011, our expectation that the Bank of Canada and Fed will kick up the pace of rate increases will see two-year rates move back to their average for this decade.

In the absence of inflation concerns, 10-year rates will also remain low in 2010, however they are forecast to rise in 2011 with the return of above-trend growth and rising inflation rates.

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 2010 Calendar?

Interest rate announcement and variable rates

Hello, this is an interesting discussion about the current interest rate environment.

The Bank of Canada announced this morning that it will maintain its key policy rate at 0.25 (the rate the determines prime rate), therefore, the prime rate remains unchanged at 2.25%, as expected. They also reiterated their commitment to maintain this rate through to the end of June, 2010 after some previous talk that they may look at raising the rate earlier.

When they do start raising the prime rate at start of the third quarter 2010, they are anticipating a 1.75% hike by the end of 2010 which would set the prime rate at 4.00%, and that is just the beginning as we can expect to see further rate increases throughout 2011.


With the inevitable prime rate hikes just around the corner, locking into a 5 year fixed rate makes more sense then ever. While there are stats indicating that the vast majority of the time, home owners have always come out ahead with a variable rate, we are now in an unprecedented time. That being said, history cannot be and should not be considered when making the decision between fixed and variable.

One thing that is certain, is the direction that rates are heading and the precipitous increases that are expected. While most variable rate mortgages can be converted to a fixed rate at any time without penalty, you may be given posted rates in place of discounted rates, should the switch take place.

If you still think a variable rate is for you, then it is important to check with your mortgage professional to find out what the lenders policy is on this. Secondly, fixed rates are determined by different factors then prime rate, so while we know exactly where the prime rate is headed over the next few years, fixed rates are much harder to predict and may start increasing much sooner, and can do so at any time.


With today's lowest available 5 year fixed being 3.68%, it can be difficult to recommend for anyone go with a variable rate, even if they expect to switch to a fixed before the mid-year increases. If you did plan on switching, you would only be able to reap savings for a few months before switching and the fixed rate they would be locking into will almost certainly be quite a bit higher then what is available to you today.

From Paul Meredith www.citycan.com

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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