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Scotiabank: Market achieved soft landing

Scotiabank: Market achieved soft landing
Wednesday, 12 December 2012 05:16 Canada’s housing market has dodged a correction bullet, according to a new report released by Scotiabank yesterday. Economist Adrienne Warren says the market has reached “a soft landing”, crediting the tightened lending rules for slowing sales and steadying prices. “The latest round of regulatory changes that took effect in early July, including the lowering of the maximum amortization period from 30 to 25 years, has contributed to the softening but does not appear to have sharply accelerated the decline,” says Warren. “Meanwhile, anecdotal reports point to...
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Mortgage Market Update

Click Here to View Video In the article below is a summary of an economic forecast given by  Craig Alexander of TD Bank, one of Canada’s top economist, last evening. It is worth your time to review the information. Regular 5 year money is currently in the 2.99% – 3.19% range. We now have 2 lenders, both conventional and high ratio, offering 10 year funds at 3.89%. If you have a variable rate of any more than prime +.75 or a fixed rate of 3.75% or more, we should explore the merits of refinancing to a lower rate.  It may result in savings of thousands of dollars and a longer term at...
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Pay Your Mortgage Like It’s 2007.

You’ll save a pile of money.  Just 60 short months ago, mortgage rates were double what they are now. That means payments on a 25-year mortgage of equal size were 36 per cent higher than today. Since then, the amortization gods have slashed mortgage rates and payments. Compared to interest costs in 2007, today’s rates would save you $101,700 if projected out over 25 years on a $200,000 mortgage. If you look at the payments on a mortgage that size, they’ve tumbled from $1,284 in 2007 to $945 today. (To put that in perspective, the payment at zero per cent interest would be $667.) It’s clear...
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Ten questions to help you avoid mortgage-penalty shock

Figuring out the penalty on a fixed-rate mortgage is like solving a calculus equation. Homeowners who try often wind up hitting their head against hard objects in frustration. It’s been that way for years, and as many unwittingly discover, mortgage penalties can be disturbingly expensive. Historically, lenders have used cryptic penalty language that disguises just how expensive. As a result, folks trying to break their mortgage are routinely shocked and disappointed by four- or five-figure penalty quotes. Interest rate differential (IRD) charges, commonly called “penalties,” have long been the...
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Mortgage Market Update

Bank prime is 3.00% The next meeting of the Bank of Canada is on October 23rd, 2012. Market Comment Bonds remained relatively steady this week. No changes expected in interest rates at this time. Five year money is currently in the 3.09% – 3.19% range. We still have one lender, both conventional and high ratio, offering 10 year funds at 3.89%.      Bank prime is 3.00% The next meeting of the Bank of Canada is on October 23rd, 2012.        Please watch this very brief video regarding current mortgage market conditions: Click Here to View Video If you have a variable rate of any more...
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