Groups are smaller communities within the larger ActiveRain. Join groups created by others. or start your own and
get others to join
This is the place to view the past and present contests put on by ActiveRain and its members. Everyone can join the
group and help encourage each other. Current contest will be highlighted posts so it's easy for you all to see. Let it
Curious as to what others in your profession think about a certain product or tool?
AR's community takes the time to leave honest and transparent reviews of their experiences
so you can be a bit wiser about your purchase.
Broken down by categories and subcategories for easy finds
Get an unfiltered look at what real users are saying
Leave a review yourself for others to benefit from
Add new products as you use them and gain points for doing so
ActiveRain University (ARU) provides free on-line training. We coach, consult and support real estate professionals about real estate trends, technology and social media.
ARU Calendar provides class types and registration links
Watch short tutorials on updating your photo, inserting a hyperlink and much more
Sign up for the Daily Drop so you don't miss out on AR's daily happenings
Find answers to most FAQ's
Whatever it is you're into and wherever you are, AR surely has a group for you to join.
Brand, off the wall, specific subject matters…whatever it is you're looking for.
Each time you write a post you can syndicate your post to 5 groups.
And if by chance you don't find what you're looking for, start a new group today!
Get your content in front of more eyes
Search by location or type
Feel free to start your own group
Find some that are close to home and close to heart
Each month AR runs numerous contests as a way for our members to engage in activities
that will boost their business and increase their visibility in the community and beyond.
Earn points by partaking in these contest and climb the leaderboard
Do what's good for you and your business by participating
If you have an idea for a contest, just let us know
Stay motivated and on track with new contests popping up each month
Ask a Real Estate Question
Here's another avenue for you to build relationships with others. Share your expertise with someone searching for answers.
Play the teacher role and help someone out today
Your Homepage will alert you of new questions in your state
A wonderful way to open a door to a possible new client
Ask a question yourself to get help
These state pages or hyper-local pages provide content directly related to a specific geographical location.
State, County, City and Neighborhood pages make it easy for consumers to find what they're looking for.
Post your listings, school information, local events, market reports and more
Consumers peruse these pages for information
Farm your niche market and cover all the happenings in your neighborhood
The question that all mortgage borrowers ask us most often:
Is it better to opt for a fixed- rate mortgage or variable rate mortgage? For several years, the classic answer was always: it depends on your cash flow and your tolerance for risk, but the variable rate mortgage or short term has been more advantageous in the long term. Example:
During the period 1950 to 2000, a Canadian borrower would have paid on average $ 22 000 in interest over costs on a mortgage of $ 100 000 amortized over 15 years, opting for fixed rate mortgages for five years instead of variable rate mortgages. The only advantage had been a greater peace of mind that payments are fixed and do not change for five years.
Those who felt that this peace of mind was too dearly paid for were right. This is not necessarily true today, some time ago, you could have negotiate a variable rate at Prime less 0.8%, it currently trades at Prime + 1%, or 3.5% at we are writing these lines, while that we can obtain a term of five years to 3.75%, the margin is very thin!
Data from the Canadian Association of Accredited Mortgage Professionals (CAAMP) show that only 27% of Canadian mortgages were at variable rates in the fall of 2008. However, this increases to 40% for mortgages contracted in the past 12 months. The popularity of variable rate mortgages has increased in recent years. It seems that this trend has accelerated since.
THE FINANCIAL CRISIS THE CHANGE
The most visible impact of the crisis is good for mortgage borrowers. The significant decline in interest rates in Canada and the fall in bond yields led to a reduction in retail rates. The rate on a fixed-rate mortgage for five years went from 7.25% in June 2007 to 3.75% today, a historic low. Meanwhile, the variable rate cut, which requires a commitment of five years rose from 5.70% to 3.50%.
Note that this phenomenon is observed everywhere in the world. The variable rate mortgages have been particularly affected by these changes. First, rather than offer variable rate mortgages at a rate slightly below the prime rate, lenders are now asking for new borrowers to pay the prime rate plus a premium of approximately 1%. Secondly, the difference between the rate of financial institutions and the rate of the Bank of Canada (BoC) has been increased by 25 basis points in December.
In the current very low interest rates, these changes have little impact on households, but what would happen when interest rates will resume an upward trend? Finally, the financial crisis has prompted the Canada Mortgage and Housing Corporation (CMHC) to tighten its eligibility criteria for mortgages. This has increased the maximum period of amortization of a mortgage to 35 years rather than 40 years.
In addition, CMHC is now requesting an investment of 5% and a minimum credit rating.
BE CAREFUL IN THE FUTURE
Are the changes observed in the Canadian mortgage market will be sustainable? It is difficult to answer this question, especially as the turbulence does not yet seem about to end. It is likely that the premiums charged by mortgage lenders decline as financial tension to resolve, but they remain significantly higher than before the crisis.
For mortgage borrowers, an assumption would be acceptable to assume that the conditions remain as they are now. A borrower who opts for a floating rate mortgage can be assumed that the gap between the prime rate and the rate of one day of the BoC remains constant throughout the duration of the loan. Under this assumption, a loan at prime +1%. However, variable rate borrowers should be aware that the prime rate remains at the discretion of financial institutions and it could vary in relation to rates.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.