Well here it is the end of another school year......summer is hear and temperatures are on the rise......but they're not the only thing on the rise! Long term mortgage rates are also on the rise.
Back in May of this year you could get a 5 year discounted mortgage rate at 3.69%. Now that same discounted 5 year rate sits at 4.29%. However back in 1951 the 5 year rate was at 5.0%, so this makes the current rates still pretty darn attractive.
Mortgage rates are currently being driven upwards by the bond markets. The 5 year bond rate April 1/09 was 1.75% and has risen to 2.57% as of June 25/09, close to a 1% jump in just a short period of time.
The Bank of Canada meets again on Tuesday July 21st and from all indications they should leave the Overnight Rate at 0.25%. This should signal the Chartered Banks to hold their Prime Rate at the current level of 2.25%. The Bank of Canada has actually indicated that they will hold the Overnight Rate through to the end of the second quarter in 2010.
See Brief Highlights from the Bank of Canada's Monetary Report of April 2009 below.
*On some purchases the major lenders are having difficulty meeting the short "Subject to Dates" and extensions are required.
*As you know the final approval process starts for the lender when they receive the Purchase Contract.
*If the purchasers do not have all documentation to the lenders then this adds to the problem of meeting the dates.
*Therefore it would be most helpful to all concerned, if the "Subject to Financing" was given an extra few days if possible.
*I know that we all want the approvals as quickly as possible and subjects removed but just those extra few days means a lot in the approval process.
*Also adding to the problem is getting the purchasers to submit all of the required documentation in a timely fashion.
*This is where time can be lost as the lenders have to confirm the documentation to the mortgage application, insuring it is accurate.
*So if the time could be extended it would be greatly appreciated by everyone in the processing of the mortgage approval.
Stats provide by Curtis Weeks of United Mortgages.
If you or someone you know is thinking of buying or selling property in, Chilliwack, Hope, Abbotsford, Langley or anywhere in the Fraser Valley Area of B.C. - or if you would like more information please give Liz Moras of Landmark Realty Chilliwack a call at- 604-799-0459 or e-mail at lizmoras@gmail.com.
Copyright © 2009 By Liz Moras, All Rights Reserved All information provided by this author is only an opinion, is not guaranteed, may be based on information collected from several sources, and may be time sensitive. It is not necessarily representative of the opinions of Landmark Realty Chwk. Ltd..
Comments(6)