Thursday, September 09, 2010

Current posted and attainable mortgage interest rates

These are the current posted and achievable rates on the market in the GTA marketplace.

All the best,
Mark

TERMPOSTED Attainable RATES*
6 Month 4.65%3.95%
1 Year3.70%2.55%
2 Year4.20%3.20%
3 Year4.75%3.34%
4 Year5.44%3.49%
5 Year5.79%3.64%
7 Year6.49%4.70%
10 Year6.80%5.10%
Variable Rate2.05%
Prime Rate2.75%















* Rates may vary and are subject to change without notice OAC.

Wednesday, September 08, 2010

Bank of Canada Raised Prime Rate - mortgage rates to follow

The Bank of Canada Raised the Prime Rate Today

The Bank of Canada raised its key prime interest rate by a quarter of a per cent today, for the third consecutive time this year.

The Bank noted in its announcement that it “now expects the economic recovery in Canada to be slightly more gradual” than it predicted at the time of its last rate hike in July, citing weaker economic activity in the U.S.

However, the Bank also stated today that consumption growth in Canada “is expected to remain solid and business investment to rise strongly” supported by “accommodative credit conditions, which have eased in recent weeks mainly owing to sharp declines in global bond yields.”

Pricing on many fixed mortgages for new borrowers has been edging down in recent weeks but this may reverse the trend.

A competitive rate for a five-year fixed mortgage is now available and can be found if the buyer looks carefully at 3.89 per cent for qualified borrowers.

A competitive variable rate mortgage is available to qualified borrowers at 2.35 per cent (prime of 3.00 per cent minus 0.65 per cent), factoring in the Bank’s rate increase today.

Most lending institutions and Banks in Canada are expected to respond to the Bank’s rate hike by increasing their prime lending rates by a quarter point, although lenders vary in when they adjust their rates for variable-rate mortgages.

Contact your mortgage professional for more information on how a particular lender may implement a rate increase.

All the best!
Mark


GTA Average Real Estate Prices and Activity for August 2010

This is the report for August from the Toronto real estate board and
indicates a 'normal' amount of activity and price drop for the month of
August.

All the best!
Mark

GTA REALTORS(r) Report Monthly Resale Housing Figures

TORONTO, September 3, 2010 ‐ Greater Toronto REALTORS(r) reported 6,232
sales through the Multiple Listing Service(r) (MLS(r)) in August 2010.

This represented a 22 per cent decrease compared to the 8,035 sales recorded
during the same period in 2009. New listings decreased by one per cent
year-over-year to

10,488.

"The prospect of interest rate hikes and new mortgage lending rules
prompted some households to purchase a home sooner than they otherwise would
have this year. The

result has been a larger than normal dip in sales over the summer months.
With this said, it is important to recognize that sales on the year were
eight per cent higher than

in 2009," said Toronto Real Estate Board President Bill Johnston.

The average price for August transactions was $411,012 - up six per cent
compared to the average of $387,921 reported in August 2009.

"Market conditions have remained tight enough to support higher home prices
in comparison to last year. Under current mortgage lending standards, a
household earning the average income in the GTA can comfortably afford the
mortgage payments on an average priced home. Market conditions and the
affordability picture would have

to change dramatically before a sustained drop in the average selling price
would take place," said Jason Mercer, TREB's Senior Manager of Market
Analysis.

HST and Real Estate

This article below explains HST for real estate transactions in great detail and I thought you would find it of interest.
All the best!
Mark

September 2010

THE HST AND ITS AFFECT ON ONTARIO REAL ESTATE TRANSACTIONS

The Harmonized Sales Tax (HST) came into effect on July 1, 2010 and as I am sure everyone knows, replaces the federal goods and services tax (GST) and the provincial sales tax (PST). The good news from a real estate perspective is that the sale of used residential property (i.e. your home), which was exempt previously from both GST and PST, is also exempt from HST. The bad news is that a number of other services associated with or incidental to real estate transactions are now subject to the 13% HST whereas before they were only subject to the 5% GST. These services include realtor`s commission, legal fees, moving fees and home inspection fees.

The rules for new homes are little more complicated. However an Agreement for the purchase of new home which was signed before June 18, 2009 will not be subject for HST even if the transaction closes after July 1, 2010. A purchaser may also be entitled to receive a transitional rebate of part of the 8% provincial component of the HST where the construction of the home straddles the July 1, 2010 implementation date. For new homes where less than 10% of the house was complete before July 1, 2010, there will be a rebate available equal to 36% of the federal component of the HST and 75% of the provincial component of the HST. However the rebate of the provincial component of the HST is only available for the first $400,000.00 of the purchase price. If you are paying more than this, there will be no rebate on the amount of the purchase price which exceeds $400,000.00.

Typically new homes in Ontario were priced with the GST included. The builder would pay the GST on closing. The purchaser would assign the right to receive the rebate to the builder in the Agreement of Purchase and Sale. It is unclear whether this practice will continue under the HST regime especially for homes valued at more than $400,000.00. As such you should make sure that the price you agree to pay does include the HST. If not, tax of 13% will be added on closing and you will have to apply to receive the rebate from each of the federal and provincial governments. In addition there will be no rebate available for the provincial component of the tax payable on the portion of the purchase price exceeding $400,000.00.

Commercial real estate will be subject to HST. However provided the purchaser and seller are HST registrants, the purchaser will be able to claim the HST paid as an input tax credit. As such it is very important that the Agreement of Purchase and Sale addresses this issue.

Residential lease payments were exempt from GST and remain exempt from HST. Commercial rental payments however will be subject to the full 13% HST, and the payer will be entitled to claim an input tax credit for the full amount of the payment.

No matter how you look at it, the HST is another flagrant tax grab for the already highly taxed Canadian consumer. Because it is an end-user tax, businesses will now be able to claim the provincial portion of the HST on goods they buy in the course of carrying on their business as an input tax credit whereas before PST could not be recovered unless a business qualified for a specific exemption. It remains to be seen however how much of the increased cost of an Ontario real estate transaction can be passed on to consumers. It is a safe bet that the slowing of the real estate market since the HST came into effect is not a coincidence. Courtesy of Michael Woods

Any questions, please let me know, thank you, Mark

Thursday, August 19, 2010

Mortgage Interest Rates in the GTA and Mississauga

The table below shows the current posted and attainable mortgage interest rates in the Mississauga and the GTA

TERMPOSTED ATTAINABLE RATES*
6 Month 4.65%3.95%
1 Year3.70%2.60%
2 Year4.20%3.04%
3 Year4.75%3.42%
4 Year5.44%3.79%
5 Year5.79%3.79%
7 Year6.49%4.74%
10 Year6.80%5.19%
Variable Rate2.10%
Prime Rate2.75%














All the Best!
Mark

Wednesday, August 18, 2010

Sales slump or Hype? Mississauga and Toronto Real Estate Sales

Many are thinking and writing about our current real estate market sales slump.
This is a typical summer slowdown, nothing to worry about, see this graph:
The papers and news can really drive markets one way or another, I think that things are very strong here in Ontario and Canada, hence the two bank rate increases of late.
Prices have been escalating so much in the past 18 months that a 3 bedroom townhome in Erin Mills cannot be found for under $300,000
That's only 1.5 years ago and back then there were between 30 to 40 3 bedroom townhomes in Erin Mills between $250 and $300k - I just checked again right now and there is not a single 3 bedroom townhouse in all of Erin Mills under $300k in fact the least expensive townhouse is $307,900.
Townhouses move quickly and sell well and are a very good indicator of the current status of the marketplace. This indicates to me that we have a very healthy market and there is no immediate signs of any weakening.
Prices will go up again in the fall, if they follow the same path as it has for the past 15 years in a row!
This means you should buy now regardless of price, but I too am a little worried that our market is a little overheated, but I've been saying that since 2000!
This is the problem when you are in real estate sales, I worry about the future because I am so close to the market and sometimes I can't see the forest for the trees!
I hope that you have enjoyed the fine weather we've been having this summer, still plenty to go!
All the best
Mark

Tuesday, August 10, 2010

Mortgage rate update-Fixed rates lowered

Good news on the mortgage rate front.
The best 5-year fixed rate has been lowered. See below the latest rates.

5 year variable rate at Prime-0.65% (Currently at 2.10%)
5 year fixed rate at 3.80%, or lower
3 year variable rate at Prime-0.75% (Currently at 2.00%) or lower

Note: These rates are subject to lenders' approval.

Under my Blog section, there are some useful articles, which provide some up-to-date news and analysis.

I hope you are enjoying the summer!
Mark

Tuesday, July 20, 2010

Bank of Canada Increases prime rate again

The Bank of Canada increased their interest rate they charge to banks from .5% to .75%. This is the second in a row of interest rate increases. There is little speculation that there will be further increases but there is considerable speculation as to the amount of increases.

A sample of the range of speculation is as follows; the C.D. Howe Institute forecasts an increase in the prime interest rate to 2% by the end of 2010 and to 3.75% in one year’s time. Bay Street, on the other hand is forecasting two more 0.25% increases for the balance of this year and then for the Bank of Canada to pause for a while to assess the economy.

With the Bank of Canada increasing their overnight lending rate from 0.5% to 0.75% this morning, the prime interest rate at all major banks has also been increased by the same amount. Therefore the prime interest rate charged by most lenders will increase from 2.5% to 2.75% effective today.

What this means is those who have variable rate mortgages will see their periodic payments increase.

See the best rates available here: Best Mortgage Rates

All the best!
Mark

Friday, July 09, 2010

Current mortgage interest rates posted and attainable in the GTA

This table shows the Current mortgage interest rates posted and attainable
in the GTA

TERM POSTED Attainable RATES*
6 Month 4.85% 3.95%
1 Year 3.90% 2.70%
2 Year 4.40% 3.45%
3 Year 4.95% 3.60%
4 Year 5.64% 4.09%
5 Year 5.99% 3.99%
7 Year 6.59% 5.15%
10 Year 6.90% 5.20%
Variable Rate 1.85%
Prime Rate 2.50%















* Rates are subject to change without notice OAC.
Rates Last Updated: Thursday, July 08, 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

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Tuesday, July 06, 2010

GTA Real Estate market is steady!

The Toronto Real Estate Board just announced the figures from June of 2010 and they are reporting that we are into a more balanced marketplace.

Market More Balanced in JuneJuly 6, 2010 --

Greater Toronto REALTORS® reported 8,442 sales through the Multiple Listing Service® (MLS®) in June. This represented a 23 per cent decrease compared to the record 10,955 sales reported in June 2009.

Sales for the second quarter of 2010 amounted to 28,810 – up one per cent annually. Year-to-date sales through June were up 23 per cent to 50,455 compared to the first six months of 2009.

"We experienced a record number of existing home sales during the first half of 2010, but these sales were weighted more towards the beginning of the year," said Toronto Real Estate Board President Bill Johnston.

"The pace of home sales has moderated from record levels over the past two months with the prospect of higher mortgage rates."

The average price for June transactions was $435,034 – up eight per cent compared to the average of $403,972 recorded for June 2009.

"With more homes to choose from in the second quarter, many home buyers have been making less-aggressive offers. This has resulted in less upward pressure on the average selling price," said Jason Mercer, TREB's Senior Manager of Market Analysis. "

The annual rate of average price growth in the second half of 2010 will be in the single digits."Median PriceIn June, the median price was $367,750, from the $345,000 recorded during June of 2009.



Toronto Real Estate Board (TREB) Average Prices and GraphFor 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