interest rates: Canadian vs American Interest Rate Calculation - 02/01/16 12:42 PM
The folks at KCM provide members like me these graphics which can be used in marketing campaigns, either as printable flyers or in emails.  This one I found particularly interesting, however am unable to make use of it due to the fact that the interest rates in Canada are not calculated in the same way as they are in the USA in most cases.
 
In Canada, our lenders calculate mortgage interest "semiannually not in advance".  What that means is basically that half of the interest is charge in each half of the year, and due to this split in the calculation, there … (1 comments)

interest rates: Bank of Canada Qualifying Interest Rate Change - 04/09/12 04:46 AM
Effective today, the Bank of Canada has raised the "qualifying interest rate" from 5.24% to 5.44%
 
What does this mean for Canadians who are looking to buy real estate or finance a home?
 
In an attempt to steer people into longer term mortgage commitments, the Bank of Canada has set an arbitrary interest rate that you must qualify to be able to afford.  So, even if you are getting a 3 year mortgage at 2.99%, they want you to ensure that you could still afford that payment should the interest rate be as high as 5.44% just in case … (0 comments)

interest rates: Message to My Mortgage Broker Friends - 03/08/12 03:38 PM

When I see things such as:  "AGF Trust is offering two 5 Year Fixed Quick Close options at reduced commission rates"
show up in my inbox I cannot help but to cringe.  I realize that the lenders in their limited wisdom are attempting to provide us with a tool to avoid losing business to others such as Bank of Montreal, but they are killing the industry and us by doing so.

I don't need their help to give my money away.
 I don't need them to give me permission to do so. 
I don't need them to try to sell me … (1 comments)

interest rates: Real Estate News: Canadian Debt Increases! What About YOU? - 06/10/11 05:45 AM
 
. Canadians rack up debt How do you compare to other Canadians? "Low interest rates today do not necessarily mean low rates tomorrow," warned Bank of Canada's Mark Carney. "Risk reversals, when they happen, can be fierce; the greater the complacency, the more brutal the reckoning." According to the TransUnion credit rating company, Canadians average $26,000 total debt on their credit cards, lines of credit, and vehicle loans.  That's an increase over the same period last year of 4.5 per cent, or another $1,000 per person. Average Canadians also owe just over $1 trillion in mortgaged debt.  An amount that … (2 comments)

interest rates: Lethbridge Real Estate - Mortgage Qualifying Interest Rate Update - 06/06/11 05:28 AM
The Bank of Canada Qualifying Rate has decreased to 5.49%, effective Sunday June 5, 2011 at 11:59 p.m. ET.
 
Every Monday morning we will verify the Qualifying Rate and will send out a new interest rate sheet when the BOC Qualifying Rate Changes.
 
Remember, we do not use the Bank of Canada Qualifying Rate on conventional deals (LTV less than 80%).
 

… (1 comments)

interest rates: Lethbridge Real Estate - Bank of Canada Announcement - 05/31/11 09:00 AM
Bank of Canada maintains overnight rate target at 1 per cent OTTAWA, May 31, 2011 /CNW/ - The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent. The global economic recovery is proceeding broadly as expected in the Bank's April Monetary Policy Report (MPR). The U.S. economy continues to grow at a modest pace, limited by the consolidation of household balance sheets. Growth in Europe is maintaining momentum, although the risks related to peripheral … (0 comments)

interest rates: 3 ways you can deal with rising mortgage interest rates - 02/16/11 08:52 AM
3 ways to deal with rising mortgage rates
By Moshe Milevsky
Here we go, again. The economy is generating more jobs, a handful of banks raise mortgage rates and all of a sudden you’re being advised to lock-in your mortgage before the bank doors slam shut. In fact, some say you’d better hurry-up and buy a house now before mortgage rates go so high you’re locked-out of the housing market for ever.
This is not the first time that mortgage rates are on the brink of blooming only to fade a few months later. This has happened more than a handful … (0 comments)

interest rates: Lethbridge Real Estate - Searching the MLS Listings for Houses for Sale - 09/11/10 09:15 AM
Lethbridge Real Estate - Searching the MLS Listings for Houses for sale in Lethbridge, Alberta Canada
 
More and more home buyers and sellers are turning to the internet to search for homes for sale, information on listing their house for sale, local real estate data, MLS listings, specific subdivisions in the city, mortgage interest rates and product details.
 
If is important for a professional Realtor to have a presence online if they expect consumers to turn to them for this sort of advice and information.  A website, a blog, and a strong social media marketing profile is necessary to … (2 comments)

interest rates: Lethbridge Real Estate News - Interest Rates Move Up - 06/01/10 05:12 AM
Lethbridge - Real Estate News
This news story is important for Lethbridge real estate and mortgage consumers but also for anyone else in Canada with an interest in real estate and mortgages.
 
Canadian Interest Rates Move Up - Article from today's Toronto Sun (Link to Original Story)
http://www.torontosun.com/money/2010/06/01/14210296.html
TORONTO - Borrowing costs for Canadians rose Tuesday for the first time in three years, though the central bank indicated the outlook for further hikes is unclear given continuing global uncertainty.
The Bank of Canada raised its target for the overnight rate by 0.25 of a percentage point to 0.5%, making Canada … (1 comments)

interest rates: Lowest Interest Rates Available - 5 Year @ 1.9% - 02/05/10 05:53 AM
I often get asked what are the best interest rates or the lowest interest rates available.  Here is your answer to that question.
 
As of Feb. 4,2010
The lowest rates I currently have available are:
5 year Fixed rate of 3.72%
5 year Variable/Adjustable rate of Prime -.35%
(which is currently 1.90%)  This is amazing
 
 
Now keep in mind that these rates are not available to every applicant or on every property.  There is always fine print attached to deals like this, so give me a call and let me take a look at your situation and see … (4 comments)

interest rates: Canadian Real Estate Back on Track - 10/08/09 01:24 PM
Canwest news posted the following article today.  On the data and opinion of Royal Lepage executives, home prices are back on track.  While our boom in Canada was later and not as large as the one experienced in other places, our bust was equally as late and small.  As it draws to an end, the economic and real estate data from across Canada is once again solid and positive.
 
Rebound in house prices doesn't point to boom: Royal LePage.  
OTTAWA - Canadian home prices are continuing to recover from the economic downturn, but that doesn't mean the market is … (0 comments)

interest rates: Canadian Credit Card Rules to Change Soon - 10/06/09 06:50 AM
Just read this great article regarding Canadian credit cards and the rule changes that are coming into effect soon.  While I agree that they do not go far enough, it is at least a step in the right direction.  This great article was posted on the blog section of yourmoney.ca and was authored by Kerry Taylor.  I am going to go back to the site and check out more of their stuff, but for now here is the original article and a link to it as well.
http://blog.yourmoney.ca/2009/10/new-credit-card-rules.html
 
Do the new credit card rules go far enough? Paying off your … (2 comments)

interest rates: Lethbridge Variable Rate Mortgages - 10/05/09 04:39 PM
There are a lot variables in a variable rate Garry Marr, Family Man, Financial Post  He has a landmark study on mortgages, but York University professor Moshe Milevsky says he never anticipated the credit markets of the last year.
The 2001 paper examined the previous 50 years to determine whether consumers benefitted from locking into a fixed-rate mortgage or going with a variable-rate product linked to prime. Consumers did better 88% of the time by going with the variable-rate option. The study has been used by banks to lure consumers into variable rate products. Currently, about 25% of mortgage holders have … (0 comments)

interest rates: Canada Mortgage Bonds Predict Interest Rates - 09/26/09 06:07 PM
 

CMB Spreads Back to Normal At the height of last fall’s credit panic, Canada Mortgage Bonds traded over 65 basis points above their regular government bond counterparts.
That’s significant because, like government of Canada (GoC) bonds, CMBs are supposed to be backed by the government and risk-free.
Things are much better now.  Investors are no longer jittery about Canada’s real estate and credit markets like they were 11-12 months ago. In turn, CMB spreads have shrunk back to a 21-basis point GoC premium (much more normal).
That, of course, is welcome news to the mortgage market. Not only are … (1 comments)

interest rates: Canadian Mortgage Rebound in Progress - 09/02/09 12:54 PM
Canada mortgage and loans continue to rebound with strength.  The strength of the recovery in Canada promises to push investment in our real estate market strongly upward.  Consumer trends are all pointing in a positive direction and if it was not for the bad news out of the US, our economy would be booming!
 
Here is an article from Bloomberg today written by Greg Quinn, it contains some facts and figures regarding Canadian mortgage rates and loans.
 
Sept. 1 (Bloomberg) -- Canadian household and corporate borrowing rebounded in the second quarter, spurred by lower interest rates, while the federal … (0 comments)

interest rates: Canadian Interest Rates To Stay Low For A While - 08/26/09 07:14 PM
CIBC: muted growth means Bank of Canada unlikely to raise rates till 2011 (CP) – 1 day ago
TORONTO — The Bank of Canada is unlikely to hike interest rates until 2011 because the lingering effects of the global economic meltdown will continue to mute both growth and inflation, according to a report issued Tuesday by CIBC World Markets.
"While the 2009 recession may already be over, the slack it created is both large and likely to persist," said CIBC chief economist Avery Shenfeld.
"Unlike the Bank of Canada, we don't expect growth to average above the non-inflationary potential until 2011," … (2 comments)

interest rates: Interest Rates At Bottom and Reversing - 05/12/09 10:09 AM
Recent interest rate specials have presented existing homeowners and new home buyers with historically low interest rate opportunities.  There have been signs this week of an end to these ultra low rates.  Just last week the bond rate yield INCREASED which puts pressure upon the banks to increase the mortgage rates.  This upward pressure may put an end to rate decreases and reverse rates back up slightly.
 
This ominous email arrived today from one of my preferred lenders regarding a couple of their rate specials which are now scheduled to come to an end by the end of the month.  … (3 comments)

interest rates: Waiting for Better Rates? - 02/19/09 03:03 PM
Waiting for Better Fixed Rates The Bank of Canada’s next interest rate announcement is just two weeks away, and many mortgage shoppers are fixated on it.
Lethbridge Mortgage Broker Lethbridge Real Estate
We’ve probably spoken to a dozen people in the last week who want a fixed-rate mortgage but don’t want to apply until the Bank of Canada meets March 3.  The thinking is that the BoC announcement will cause fixed rates to fall.
We’re used to seeing this psychology with variable-rate shoppers but not with fixed rates.  As such, it’s worth examining further the linkage between the Bank of Canada … (7 comments)

interest rates: Interest Rates for Alberta Mortgage Applicants - 02/17/09 06:14 PM
 
I often receive calls asking me exactly how much better mortgage rates can a good mortgage broker negotiate compared to what the big banks offer their customers.
 
Here are the rates as of today 2/18/09 from the Royal Bank's website:
… (5 comments)

interest rates: Canadian Interest Rates Drop - 12/08/08 06:19 PM
As lending criteria seem to be tightening on a weekly basis making it ever more difficult for individuals to qualify for financing, the interest rate for those who are still able to qualify continues to decline.  It is forecast that it may reach levels not seen in decades.  This morning there will be an announcement from the Bank of Canada where it is widely expected to cut rates by half a percent.  Hopefully enough to stimulate investors to jump into the real estate market and help reduce the growing inventory of unsold property. In times like these it is very important … (2 comments)