We are expecting a significant mortgage rate increase in the next week. It is extremely important that you act on this now!
Spreads on our bond yields which we use to set interest rates for all lenders are under water now.
Today the largest courier company Ups purchased a large courier company in Denmark, to make it the largest company in North America
When we see the logistics companies and courier companies grow as in in this example that is a tell tale sign that the economy is improving.
http://www.businessweek.com/news/2012-03-18/ups-said-to-reach-deal-to-buy-tnt-express
This is contrary to what the economist for CMHC indicated in late 2010 which was a freeze on interest rates over the next 14 months. This prediction was done prior to the fact that Interest rates kept dropping to the levels that exist now, along with many signs of an improving economy.
Mortgage trends is an excellent link as the brokers here many who work for the RBC Alternate Mortgage Lending side tell the true picture. Check out what they say
http://www.canadianmortgagetrends.com/canadian_mortgage_trends/interest_rate_direction/
We saw BMO launch a 5 years rate at 2.99% in January only to find out as a strip down mortgage it lacked many of the features of a mortgage. They pulled it and then tired to re launch it but by then everyone knew what they were selling. I sent you all a marketing piece on the comparison of RBC offering with all the bells and whistles in our Homeline Plan as a comparison to this. One bank is already to pull their rate offering this week.
Many of my clients started thinking shorter term 1-3 years up until this weekend when there was a mass frenzy of information traded between all of the big 5 banks on the tightening of bond yields and already a few have called back today and adjusted from a shorter term to the 4 year rate offering at 2.99% RBC Homeline.
What does this all mean?
You have a window of opportunity to help me rate commit as many clients as we can before the rates go up and save your clients 1000's of dollars .
We can hold this rate for 120 days. On a 250,000 mortgage if the rate is now 2.99% and later goes to 3.29% that is a payment swing of almost $40 a month or 2400 over 5 years and that would be the largest single increase in 4-5 yr rates in over 2 years!
I am attaching application forms for any of you who want to pro active ad have your clients complete these and also authorize a credit check 524 pdf form with RBC.
With out these two items I cannot protect your clients when rates rise before the end of the month.
RBC will continue to deliver advice you and your clients can bank on!
Lets all take advantage of this to book our clients at this excellent offering and grow your pipeline for Spring!!! Once the 2.99% offering is gone its gone!
David Pylyp Great advice from Lindsay Doke RBC Are you booking the rate? If you are active in the Toronto Real Estate market you should reach out and reserve your interest rate. Call me
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