Pre Power of Sale Properties question and answer

Hi Mark,

I understand what you have said about new and changed Power of Sale Properties in the GTA.

But Mark don't you have people calling you occasionally who are in fear of going into power of sale and ask you to sell there home for them before the bank takes over?

Thank you,

VE

Hello VE,

Yes, occasionally I get people who are in trouble and have been served POS proceedings, but often by that time they are so far behind that it will sell for less when it eventually goes POS.

I have one person right now, but they are 5 months behind, the bank just wrote them for the final time and their mortgage, arrears interest and bank legal fees are about 25k more than what the property is worth.

In this case the people will just wait it out, let the bank sell the property and then leave.

I will keep you signed up to the list, their are some very good deals that come out of that list, just have to keep watching.

Thank you,

Mark

Interest rates, what's best Fixed vs. variable... a different story

Hello

Historically speaking, variable rate mortgages have always been better choices then fixed rates as far as interest savings. see the graph here: http://www.mississauga4sale.com/rates_1year_5year.jpg

However, that was then, this is now. With the discounted variable rates being a thing of the past (it may be something that we will not see for many years to come) and variable rate mortgages now being offered at a premium, the gap between variable and fixed rates is now much smaller.

So am I saying that you should go fixed? Not necessarily. You will experience an immediate savings with the variable rate, as always in the past, and most variable rate products allow you to switch to a fixed at anytime without penalty. Going the variable rate route at this day and age, is much more risky than it has been in the past. A

nyone going with a variable rate must be prepared to switch at some point within the next year to two years when rates start going back up again in order to benefit from any savings. For this reason, I suggest this product only for the more financial savvy mortgage seekers. For homeowners who would rather get into a mortgage and not have to worry about it for the next 5 years, the fixed rate will be the better, safer option.

We anticipate one more rate drop of 25 basis points (1/4%) during the next interest rate announcement from the Bank of Canada on April 21rd which will most likely be the last prime rate drop we see. Can it really go much lower? Bank of Canada Prime rate is currently sitting at .5%


Fixed rates are continuing to drop with a 5 year fixed now as low as 4.07%! WOW!


Today's lowest rates are as follows:


1 year fixed 3.25%
2 year fixed 3.89%
3 year fixed 3.99
4 year fixed 4.15%
5 year fixed 4.15%
5 year fixed 4.07% (30 day quick close)
5 year variable 3.30% (prime + 0.8%)

Thanks
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 : mark@mississauga4sale.com
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Mortgage Interest Rate update

The table below will show you the current posted and rates that are available from some lenders.

I hope this finds you happy and healthy!
Mark

TERM	POSTED	Achievable RATES*
6 Month	5.20%	5.00%
1 Year	4.50%	3.25%
2 Year	5.00%	3.79%
3 Year	5.20%	3.74%
4 Year	5.44%	3.94%
5 Year	5.55%	3.82%
7 Year	6.80%	4.95%
10 Year	5.80%	5.25%
Variable Rate		3.25%
Prime Rate		2.50%

* Rates may vary and are subject to change without notice.
Rates Last Updated: Friday, March 20, 2009

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS 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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Tim Horton's chances of winning a car!

I just heard on the radio with the Roll up the Rim to WIN with Tim's that they put more winning cups in BC compared to Ontario

The odds of winning a car in BC are about 1 in 5 million and in Ontario the odds are 1 in 10 million which is about the same odds as you becoming a professional athlete or dating a super model, good luck!

Lol

Mark

Current Mortgage Interest Rates in Toronto Area

These are the current mortage interest rates in the GTA

Take advantage of today's historically low interest rates.

There's no better time to consider purchasing your first home, renewing your mortgage, or planning that home renovation you've been thinking of.

TERM	POSTED	BEST RATES*
6 Month	5.20%	5.00%
1 Year	4.50%	3.50%
2 Year	5.00%	3.99%
3 Year	5.20%	4.00%
4 Year	5.44%	4.14%
5 Year	5.79%	4.12%
7 Year	7.00%	6.00%
10 Year	7.35%	6.35%
Variable Rate		3.25%
Prime Rate		2.50%

* Rates may vary and are subject to change without notice.
Rates Last Updated: Thursday, March 12, 2009

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS 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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

TREB reports Number of listings is up, time on market is up and numer of sales down

The chart above shows that our market is still soft compared to his time last year.

The number of listings is up, the number of sales is down and the time on the market is 50% longer compared to the same time last year.

This is my 21st year in real estate and I've seen this type of market before in the early 1990's I don't feel that we will sink nearly as low as prices fell in the early 90's as the economics are quite different now compared to then.

With that said, we are still in for a rocky few quarters before we come out of this financial crisis.

I wish you all the best!

Mark

For more information please contact A. Mark Argentino

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

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

Economy poised for recovery this year

The Bank of Canada announced Another 50 bps trimmed off the policy rate and talk about adding quantitative easing to the mix.

The economy sagged in the fourth quarter and first-quarter reports point to a larger contraction in early 2009.

I tend to agree with the expert financial institutions that current interest rates are low and fiscal stimulus is in the pipeline, setting up for a recovery later this year.

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS 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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

POS property purchasing something of lower value?

I had another question about power of sale properties and I thought I would share the question and my answer, Mark

Hi Mark,

I've read through your section on Power of Sale & found it very helpful, but I just don't understand this one point & was hoping you can clarify for me - "One saying about Power of Sale Properties is "you get a lower price but it's a lessor product" " - does this mean I may be purchasing something of lower value?

Thanks in advance,

SL

Hello SL,

Thanks for your comment and question. Yes, generally speaking you are purchasing a lesser product. This means that the property you are purchasing may not have window coverings, appliances etc. included and the property could require some renovations or improvements.

In addition to this you are taking more risk such as the seller redeeming before closing, no warranties on anything, buying as is, where is, etc. so you are effectively purchasing a property with less inclusions and higher risk compared to 'regular' properties for sale in the same area. With this said, this is why you will usually be able to purchase a POS at a lower price.

I hope this helps.

Please let me know if you have other questions.

Mark

Are less people selling or are homes on the market longer, or combination?

another good question that I thought I would share the answer with you

Hi Mark,

I have a question. The 50% drop in sales from last year means;1 ) less people are selling(i.e they are holding on to their homes)
2) homes longer on the market( i.e homes are being listed just as much as last year but there is less interest to buy 3) combination of the two.

Thanks,
S.

Hello S.,

Good questions.

1. There are actually more homes on the market. 50% drop is the actual number of sales year over year.
2. Days on market is longer, meaning it's taking on average, about 2 weeks longer to sell a home. Behind this, what they don't tell you, is that sellers are on the market for 2 to 4 weeks, don't sell, reduce price by 5 to 10% and sell, house takes 5 to 7 weeks to sell rather than 2-3 weeks.
3. The two situations above are an indicator of a slowing/slow marketplace. Not sure which one came first.

There are less people buying, especially first time buyers, so this is the end result of a cautious buyer.

I hope this helps.

Please let me know if you have any other questions or if there is anything else I can help you with.

Thank you,

Mark

Save over $300 per month on a $300k mortgage with Today's mortgage interest rates!

This article talks about the recent lowering of the prime rate and it's effect on interest rates

With the drop of 50 basis points (1/2%)to the prime rate by the Bank of Canada last week, we have seen virtually every lender adapt this change by lowering their prime rates to a new record low of 2.5%. The next BOC rate announcement is set for April 21st, where a cut of another 25 basis points is expected. This will most likely be the final cut, after all, anymore cuts and they would be paying us to take mortgages! Anyone with a 'prime minus' variable rate should have a very large smile on their face :)

As of today, we are starting to see some downward movement on fixed rates. The lowest available 5 year fixed rate now is 4.19% (30 day quick close) and the one year fixed as dropped to 3.25%! Will the fixed rates come down further than this? We will have to wait and see.

The prime rate is then expected to remain relatively stable for the remainder of the year.

With mortgage rates this low, and with the fallen prices of homes, there has never been a better time in history to buy real estate then right now. This is a time that anyone in this business should be excited about. Even if homes were to depreciate another 3% for the year, the amount they end up saving at today's interest rate more than makes up for it!

Last year at this time, the lowest 5 year fixed rate was 5.99%..... a 1.8% difference from the lowest rate today.

Here is an example of how today's interest rates are better: A $300k mortgage at last years rate of 5.99% amortized over 25 years would have a monthly payment of $1,917. The same mortgage at today's rate of 4.19% would have a monthly payment of $1,609..... a difference of $308! Multiply that difference over the 5 year term and you have saved $18,480. That's $18,400 that stays in your pocket as opposed to going into the banks.

Let's look positively upon the financial opportunity in front of us right now. It is there. Let's make it happen!

Today's lowest rates that I can find:

1 year fixed 3.25%

2 year fixed 3.99%

3 year fixed 3.99%

4 year fixed 4.25%

5 year fixed 4.34%

5 year fixed 4.19% (30 day quick close)

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?