Toronto mortgage news.BANK OF CANADA: NO CHANGES FOR MORTGAGE RATES

The Bank of Canada saw no reason to move its key lending rate from 1.00%, where it has been for a little over a year.
That's precisely what the market anticipated and it means prime rate (which is the basis for variable mortgage rates) should remain at 3.00%.
The Canadian economy is now expected to return to full capacity by the end of 2013 (it was previously mid-2012). Core inflation is expected to be declining through 2012. 

The bank left out language about potential rate hikes or cuts, but slashed its 2012 Canadian growth forecast from 2.6% to 1.9%.
With a commitment from the U.S. Fed to keep its policy rates “exceptionally low” until mid-2013, there is little expectation that the BOC will diverge and raise rates substantially before then.
The bank also hinted that if the euro-area crisis is not contained, that could be a reason to lower rates here.
According to the current Big 6 bank consensus forecast, 2012 should see a 50 bps increase in prime rate. Financial markets don't believe that, however, with derivatives traders effectively pricing in no change by the Bank of Canada in the next year.
The final BoC rate meeting for 2012 is December 6.
To find out more about Toronto mortgage rates and lowest mortgage in Ontario go here - http://www.torontogreathomes.com/ONTARIO_MORTGAGE/page_929364.html

Toronto real estate and Toronto mortgage. Mortgage Interest Rates, Up or Down?

The interest rate gap between variable rate mortgages and fixed rate mortgages is narrowing. 

The rate difference is now under 1%, down from 1.50% a month or so ago.

Although the prime rate of 3.00% may not change for a year or so it is now more tempting to lock in a 5 year term fixed rate, especially since it it unlikely that fixed rates will come down much more.  So the choice for a new mortgage, on average, is between a 5 year term 2.70% variable rate and a 3.49% fixed rate at most banks.

If you already have a 2.25% (prime minus 0.75%), mortgage there is less incentive to move to a fixed rate at this time.

Fixed Mortgage Rates:

Move up and down every 6 months or so with bond rates.  Recently they have been moving down and are now the lowest they have been for many, many years.

5 year term fixed rate:

• 3.39% if closing in 30 days
• 3.49% for closings and pre-approvals with rate holds to 120 days
• rates apply to both 20% down payment and 5% down payment CMHC insured mortgages

Variable Mortgage Rates:

Prime rate to bank borrowers is 3.00%

The prime rate affects business loans, car loans, etc and is not likely to move up in the next year unless the economy improves both in Canada and the United States.

The variable mortgage rate has moved up from prime minus 0.75% to prime minus 0.50%, so 2.25% up to 2.50%. 

5 year term variable rate:

• 2.50% for closings and pre-approvals with a non bank mortgage lender 
• 2.70% with a bank rates apply to both 20% down payment and 5% down payment CMHC insured mortgages, the borrower must qualify using a rate of 5.39%

Open Mortgage Rates:

• Home Equity Line of Credit available at prime plus 0.50% for a rate of 3.50%.
• Open to repayment any amount, anytime.
• Payments as low as interest only
• Monthly payments only
• Minimum down payment 20%, no CMHC

Higher Mortgage Rates:

• Credit Beacon Score 600 or less, rate about 1% higher, 15 to 25% down payment and a 1% lender fee
• Business for Self, stated income, less than 2 years or Commission Income, same as above.

If you have questions, call mortgage agent and real estate sales representative

Alex Malkhassaints at (416) 723-9383.

Ontario Mortgage Refinancing

You should refinance if you want:

to eliminate high interest loans - credit cards, car, rrsp, personal, investment, student loans

to pay for kid’s education

to take advantage of today’s historic low rates

to invest in real estate, mutual funds, RRSP

to get rid of existing second or third mortgages

to reduce current mortgage rate

to pay for holiday trip

to lower current mortgage payments

to increase monthly cash flow

to pay for home renovations

to create an emergency fund.

Alexandre Malkhassiants,

Mortgage Agent with Centum Mortgage Decision

Sales Representative with Right at Home Realty Inc.

Office: (416) 391-3232
Cell: (416)723-9383
Email: amalkhass@rogers.com
 Toronto real estate 

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