Short term mortgage rates may be the way to go for now

After the banks increased their fixed rates twice, it appears that variable
rates look more attractive.

See the following for best rates.

3-year fixed rate: 3.75%
5-year fixed rate: 4.18%
3-year variable rate: P-0.60% (1.65%)
5-year variable rate: p-0.50% (1.75%)

The spread between fixed rates and variable rates has widened.

If you have not locked into any fixed rates, you may be better off to go
for the variable for now.

If you need any help with your mortgage options , please feel free to
contact me.
Mark

Single family average residential real estate prices in the GTA

This graph shows the single family average prices over the past year or so and shows that prices have increased significantly over this period.

For more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com

TREB reports sales volume and prices up in April 2010

Average prices were up again in April to $437,600 Volume of sale was also
up about 34% compared to the same month last year.


GTA REALTORS(r) Report Monthly Resale Housing Figures

TORONTO, May 5, 2010 - Greater Toronto REALTORS(r) reported 10,898 sales
through the Multiple Listing Service(r) (MLS(r)) in April, representing a 34
per cent increase compared to April

2009. There were also 20,683 new listings in April - a 59 per cent annual
increase. Both the sales and new listings results amounted to new records
for the month of April under the

current Toronto Real Estate Board (TREB) boundaries.

"The GTA resale market is functioning properly. Sales were high as buyers
continued to take advantage of affordable home ownership opportunities.
Listings grew as home owners reacted

to strong sales and price growth," said Toronto Real Estate Board President
Tom Lebour.

More balanced market conditions will result in sustainable rates of annual
price growth in the second half of 2010."

The average price for April transactions was $437,600 - up 13 per cent
compared to the average of $385,641 recorded in April 2009.

"Home sales continue to be driven by many different segments of the market,
with sales growth for all major home types in both the City of Toronto and
surrounding 905 regions," said Jason Mercer, TREB's Senior Manager of Market
Analysis. "Home sales will remain strong in the second half of 2010, but
will slip from the current record pace as borrowing costs rise."

Mortgage interest rates in the GTA - 5 year closed rate at 3.79%

As part of my obligation to provide you with excellent service, today I have received notification from 2 major banks, Royal Bank and TD Canada Trust that further increases in mortgage rates are occurring.

Over the past 4 weeks rates have moved from the upper 3% range to the mid to upper 4% range. These changes are significant.

As of equal significance is one company that I work with called AstrumStar and their rates are still excellent with the AstrumStar 5 year closed rate at 3.79% and the AstrumStar 3 year variable rate at prime minus 0.9% - yes 1.35%.

Yes these rates are available to those who transact through me. Let me know if you are interested and I will send you details.

Thank you,
Mark




For more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com

Mortgage interest rates, The Bank of Canada and our current GTA real estate marketplace

Hello,

Houses sales will slow down when interest rates increase.

Many people are hoping that the real estate market slows down, they feel things are too fast and hot and the recent increases in real estate prices have caused more inflation in Canada than the Bank of Canada wanted or anticipated.

The Bank of Canada announced on Tuesday that although they promised to not increase the prime interest rate until July 1 of this year, they said that they may "break that promise" and increase the bank prime rate at the beginning of June. Their reason is that the economy is too hot and the inflation rate is currently too high, above their target inflation rate.

By increasing interest rates, this will increase mortgage interest rates and less people will be able to afford to buy a home so the real estate market will slow down. This is what the Bank of Canada wants to happen and many others want to happen. They feel the inflation rate is getting too high.

When interest rates go up, this always means that people who are barely able to afford a home will not be able to afford a home ( or at least afford less), they will not be able to purchase or will have to purchase at a lower price and this will have a negative ripple effect on the entire marketplace and the real estate market will slow down. Prices may not fall right away, but they will stop increasing and the demand will decrease.

Also, July and August are typically the two slowest months in real estate (next to December) so the seasonal real estate slowdown along with increased interest rates plus the HST coming into effect July 1 will most likely slow our real estate marketplace.

I hope this helps explain things to you! :-))

Thank you,
Mark

Number of sales in the GTA is dramatically increased compared to the same period last year

This chart below clearly shows that the number of sales in the GTA is dramatically increased compared to the same period last year. New listings are also up, but active listings are down, meaning that there is much more demand than supply and this is why prices are rising.

You will also note that the average days on the market is half of what it was a year ago, again, this indicates that the market is very fast right now.
All the best!
Mark

For more information please contact A. Mark Argentino

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

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

New CMHC Rules for Self-Employed

Dear Reader,

New CMHC Rules for Self-Employed Borrowers in effect TODAY

New rules for self-employed borrowers are effective today Friday, April 9th,
2010 for all mortgages insured by by Canada Mortgage and Housing Corporation
(CMHC) and pose new challenges for this category of clients.

*Purchases are only available up to 90% (previously 95%)

*Refinances are only available up to 85% (previously 90%)

*Commissioned sales borrowers are no longer eligible under this program

*A minimum of 2 years consecutive self-employment will no longer be required

*Borrowers must have a minimum of 2 years work experience in the same field

Now, self-employed and commissioned-income borrowers with more than three years in the same business applying for a mortgage, are required to provide traditional proof of income (or "third party validation") through documents like financial statements, T1 Generals, Notice of Assessments and T4s etc.

PLEASE NOTE: Genworth Financial Canada's (GNW) policies remain unchanged and self-employed applicants who have been in business for 2 years or longer continue to be eligible BUSINESS FOR SELF (ALT. A) program that means more Choice & Convenience for your potential clients.

TROUBLE GETTING FINANCING??? Have you been turned down lately?

We Can Help You!

6 mon 3.85

1 year 2.49

2 year 2.95

3 year 3.29

4 year 4.09

5 year 4.19

7 year 4.95

10 year4.99

Prime Rate 2.25% prime -.50% = 1.75%

* No charge for qualified applicants

* 1st & 2nd Mortgages

* Up to 120 days rate guarantee

* 24Hour Mortgage Approval

* Mortgages on all types of Property (Industrial, Commercial
Residential).

* Up to 7% Cash back for qualified applicants

* Secured Lines

Mark

5 year mortgage interest rates on the rise again

Royal Bank and Scotia bank have increased their 5 year fixed mortgage
interest rate by 1.4% - the slow but steady rise in rates is in progress,
within a few months you can expect posted 5 year rates over 6%

The table below shows what is posted and what is attainable in the
marketplace, OAC of course! :-)

All the best,
Mark


Term 6 Month 1 Year 2 Year 3 Year 4 Year 5 Year 7 Year 10
Year Variable
Rate Prime
Rate
Posted Rates* 5.10% 4.10% 4.25% 5.05% 5.25% 5.85% 6.80%
6.90%
Best Rates* 4.59% 2.65% 2.95% 3.69% 4.09% 4.39% 4.95%
5.19% 1.85% 2.25%

How to Pay down your mortgage faster

How to Pay down your mortgage faster

Buying a home is probably the best investment you will ever make. That's because you can pay off your mortgage and build equity in your home over time. Renters on the other hand will continue to pay rent and will likely see their rent payments increase significantly as time goes by.

From the moment you make that first mortgage payment, you will probably be dreaming of the day when you can make your last one and be "mortgage-free." For most people that day is pretty far off in the future, but it is possible to speed up the process.

Your REALTOR^® will be able to advise you on ways you can pay down your mortgage as quickly as possible. This information will be helpful when you are arranging financing on your home. Be sure to discuss various options with your financial institution before choosing a mortgage.

Amortization schedule
One of the best ways to pay off your mortgage faster is to shorten the "amortization period." By choosing a shorter amortization, you will not only pay for your home in less time, but you will make substantial savings in interest too.

For example, the most common mortgage amortization is 25 years. By shortening that period to 15 years, you will erode the amount of money you owe much more quickly and make fewer interest payments. Shortening the amortization period is not for everyone as it does mean larger payments, but for many people the benefit of long term savings is worth it.

Usually each mortgage payment is blended and applied to both the principal and interest so at the beginning, the interest portion of the payment is extremely high. However, with each payment, more and more of is applied to the principal. Ask your REALTOR^® to give you examples of what your payments would be at the current interest rate amortized over 25 years as compared to 15 years.

Payment options
It used to be that most people made monthly mortgage payments, but weekly, bi-weekly and semi-monthly payments are more popular today. With these types of payment options you will reduce the amount of principal you owe faster because you make payments on a much more frequent basis and less interest is accrued. Many mortgages also offer homeowners the option of making an additional payment each year or increasing your payment each month. Making the equivalent of one extra payment a year can save you a considerable amount over time.

Anniversary date
Many mortgages allow you to make a lump sum payment on the anniversary date of your mortgage. Again this reduces the amount of money you pay interest on resulting in long term savings. It's wise to find out what "pre-payment" privileges are available on the mortgage you choose.

Your REALTOR^® along with either your bank, trust company or mortgage broker can help you look at all the possibilities for financing your home and can tailor a mortgage that fits your income and your goals.

Shop around
Look for a mortgage that has as much flexibility as possible. Be sure you can make at least one extra payment a year and can choose the payment plan that works best for you. Your REALTOR^® is experienced and knowledgeable about the many mortgage options and the types of payment plans available and can act as your guide to help you become mortgage free sooner.

Read more about how to pay down your mortgage faster

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

Landlord Services Property Management Tenant Matters

You may require Landlord Services for Property Management of your investment property here in Mississauga. I can help you collect rent from Tenants, manage the property, pay bills, and legal action on your behalf against bad tenants

You may want to read about

• Landlord Services that I provide or
• Investment property management

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