Rising But Still Historically Low Interest Rates

The Bank of Canada is ulikely to raise rates much while the US federal funds rate stays near zero. Doing so could result in permature slowing of our economy and an even higher Canadian dollar. We therefore expect the first wave of rate hikes to be limited, with most of the increase in 2011 when the Fed starts moving.

Probably not a housing bubble

Using a recent International Monetary Fund housing valuation model updated to reflect the most recent Canadian data, we estimate that Canada's housing marke as a whole is roughly 10% over what would be consistent with current housing fundamentals. A modest overvaluation like this probably doesn't indidate a bubble. Given our historically low interest rate, what we're most likely witnessing is a temporary period of exuberance that's "borrowing" from furter activity. Rather than plunging, house prices are more likely to stagnate (or fall modestly in overheated markets).

Article Provided by: Firstline Mortgages

REFINANCING YOUR MORTGAGE
RENEWAL OF YOUR MORTGAGE
PRE-APPROVAL TO BUY A NEW HOME OR INVESTMENT PROPERTY
MORTGAGES FOR SELF-EMPLOYED CLIENTS
ZERO DOWN PAYMENT MORTGAGE

For all of the above give me a call for the best service and competitive rates! Rate hold for 120 days.

Office: (604) 510-7700     Cell: (604) 329-5289 (24/7)

10 Things to Consider Before your Mortgage Renewal

1 Have you explored all your options? 
Once you receive your mortgage renewal statement, there’s nothing easier than simply signing on for another term. But while this may make sense in many cases, your family or financial situation may have changed over time. We can look for opportunities that could better meet your needs right now.

2 Are you comfortable with your payments? 
If you’ve been feeling financially strapped each month making your mortgage payments, this could be the time to reduce them to a more easily managed level. On the other hand, if you’ve earning more, why not pay down your mortgage faster and save thousands of dollars in interest over time?

3 Do you need cash flow for other things? 
Your priorities may have shifted since you first bought your home, and your cash flow needs can shift too. Things like paying for a child’s university education, planning a career change, or a major purchase such as a vacation property may call for spending money on things other than your home. You may be able to refinance your mortgage to take this into account.

4 Can you handle fluctuating rates? 
Some homeowners are nervous about any hikes in interest rates, while others are comfortable to go with the flow. Rates are tough to predict. It’s best to base your decision on your personal situation, not what you read in the news, and tailor your mortgage renewal around your needs. We can help you decide whether to opt for fixed or variable rates - and we don’t want you to lose any sleep over your decision!

5 Will you sell soon? 
If you are likely to sell soon, consider a shorter-term mortgage or one that has flexible terms so you’re not penalized if you sell your house before the mortgage comes due.

6 Are you thinking about a major renovation? 
You know that projects such as a new kitchen or an addition can make your home more valuable. But the cost of having the work done can tie up a lot of money. Before you renew, look at all your financing options, which may include getting an additional line of credit or keeping your monthly mortgage payments low so you have money on hand to finance the renos.

7 When do you want to be “Mortgage-free”? 
If you’re planning extended time away from work or perhaps an early retirement, it may make sense to pay down your mortgage sooner rather than later. While increasing your payments will raise your monthly costs now, you’ll ultimately save on interest in the long term and can prepare for that fabulous, mortgae-free lifestyle.

8 Could you use your home equity to fulfill other goals? 
Refinancing a mortgage can be one way to free up cash you need for other things, which could even include buying another property. Mortgage renewal time is an ideal occasion to review all your options.

9 Have your insurance needs changed? 
If your financial situation has changed since you first took out your mortgage, review whether you need the same level of insurance in place to cover mortgage obligations.

10 Are you getting the best rates and terms? 
In a competitive mortgage environment, your good credit history can make refinancing work to your advantage. We analyze mortgage markets daily to ensure you don’t miss any money-saving opportunities.

We have access to the widest variety of lenders — to find the right solution for you. We are experts at helping you achieve your homeownership dreams. Access your best options! REFERRALS WELCOME!

Recognizing the Value of Renovations

There are many reasons to renovate. You may wish to add beauty to your home, or you may simply wish to cut expenses. Over time, the money you save on heat, light and water by making your home more energy efficient may actually pay for your upgrades. According to Canada Mortgage and Housing Corporation, here’s on average what you can expect from the money you invest:

Thinking of Renovations

Let us help you budget and plan for your  home renovation project we can help to make it easy and affordable by presenting you with some creative financing options.

Renovation financing options vary from lender to lender; and can include such options as:

1. Blend and extend option.

2. Hi Ratio, CMHC insured.

3. Equity take out (secured and unsecured)

To discuss your individual renovation needs, please call us anytime at 604-501-7700

Is It Mortgage Renewal Time?

If your mortgage renewal is coming up, here are some factors you might want to consider.

Term Length

Whether to renew for a short or a longer period is a decision you should base on your personal circumstance, ask yourself the following questions. Do you have the discretionary income to absorb the payment shock of an interest rate hike if you have a short-term mortgage? Do you understand the national and international dynamics that influence Canadian interest rates? Do you have the time and information necessary to monitor interest rate trends and anticipate future rate trends?

If you answered "Yes" to these three questions, you should consider playing the interest game. If, however, you answered "No", you may wish to opt for the security of a longer-term mortgage.

Payment Frequency

Renewal time is an excellent time to bring you closer to mortgage freedom. Take a good look at your finances. You would be surprised how much difference an extra $50 per biweekly period can make.

Before you renew, call us to find out more about our 5 year special, or our 5 year variable rate mortgage. We also offer more than 1% discounted fixed rate mortgages as well. By allowing Mortgage Plus to do the shopping for you, we can save you thousands of dollars. To switch from your present lender to a new lender is FREE*

(*A new lender does not charge a fee for you to switch your mortgage to them, the only cost you will incur is a discharge fee from your present lender. This fee is usually approx. $200.00)

An article courtesy of MCAP Service Corporation Canada’s Leading Independent Mortgage Provider