| TERM | POSTED | OUR RATES * |
| 6 Month | 4.00% | 3.95% |
| 1 Year | 3.09% | 2.79% |
| 2 Year | 3.14% | 2.69% |
| 3 Year | 3.65% | 2.99% |
| 4 Year | 4.54% | 3.09% |
| 5 Year | 5.14% | 3.39% |
| 7 Year | 6.35% | 3.84% |
| 10 Year | 6.75% | 4.19% |
| Variable Rate | 2.60% | |
| Prime Rate | 3.00% | |
| BenchMark Rate | 5.14% | |
| Cost Per $1000 | $4.93 | |
| * Rates may vary provincially and may be subject to change without notice. Cost per $1000 based on 5yr fixed term rate compounded semi-annually. Call Alexandre Malkhassiants for details: (416) 723-9383 | ||
Showing posts with label mortgage in Canada. Show all posts
Showing posts with label mortgage in Canada. Show all posts
Monday, August 26, 2013
NEW MORTGAGE RATES. August 2013
Wednesday, February 8, 2012
Toronto real estate in January 2012
Canadian housing starts unexpectedly retreated in the first month of 2012 as a result of considerable decline in urban single units and slowdown in multiples. The seasonally adjusted annual rate of starts decline 1 percent to 197,900 units in January from 199,900 units a month earlier, Canada Mortgage and Housing Corp. reported today. From a year earlier, Canadian dwelling starts increased 18.3 percent in January 2012 compared to a gain of 20.6 percent in December 2011.
The pace of housing starts slowed slightly in January but remained robust during an unseasonably warm winter, according to data from Canada Mortgage and Housing Corp. Strong homebuilding activity will likely to be a boon to the Canadian economy in the short term, but could also signal overbuilding that could wreak havoc in the longer term, economists warned Wednesday.
The seasonally adjusted annual start rate — which smooths monthly variations — was 197,900 units in January, down from 199,900 units in December, the CMHC reported. "While housing continues to surprise on the upside, we caution that this pace of homebuilding is unsustainable," said TD economist Diana Petramala.
January's one per cent decline was mainly because of sharp decreases in Quebec and Atlantic Canada — regions that posted big gains in the month before. Builders have been able to continue construction during the winter season, which has been noticeably warmer and largely snow-free in many parts of the country.
Low borrowing rates — tied to persistent economic uncertainty — appear unlikely to rise any time soon, which has propped up demand for homes. At the same time, home prices have risen sharply as buyers rush in to take advantage of those low mortgage rates and compete for homes, making ownership less affordable for some. Senior government officials have issued repeated warnings about the implications of taking on too much debt when mortgage rates inevitably rise.
Still, the January report was good news for Canada's economy because the housing sector makes up a sizable portion of GDP and an influx of building has contributed to a run up in construction jobs in the latest jobs report.
Based on the high level of building permits approved in December, construction could trend even higher in the months ahead, said David Madani of Capital Economics. "The large amount of work under construction is broadly consistent with the elevated level of construction employment as a share of total employment. This is a stark reminder of just how important strong housing investment is for the broader economy."
The report is a good indication that housing activity will continue to support GDP growth in the first quarter of 2012, said TD economist Diana Petramala. However, overall weakness in the job market since July —the unemployment rate now sits at 7.6 per cent —could put a damper on demand later this year and the market appears to be "slightly overbuilt and overpriced," she warned.
In line with a recent trend, January's strength was concentrated in the multi-unit, or condo sector, which has been identified as most at risk of a downturn because of a potential glut of supply that could outpace demand. Multi-unit starts increased 0.4 per cent, while single family home starts fell 7.8 per cent — their lowest level since May.
Housing construction is outpacing the levels demanded by demographic fundamentals such as the level of new household formation — especially in the condo market. "The result has been a large over hang of newly built and unoccupied multiple units, putting significant downside risk to home building once interest rates begin to rise," Petramala said.
Madani also said he remains concerned about overbuilding and the "rising likelihood of a housing slump down the road." Given that developers usually begin construction with only about 60 to 70 per cent of units sold, the recent strength in multi-unit starts suggests there could be a glut of newly completed, unoccupied condo units, he said. "This is just one sign of a housing investment boom that has gone too far."
While January's figures reflect that construction is settling into a healthy pace, there were some specific regional and sectoral trends that underlie the data, BMO economist Robert Kavcic said. Most prominent of those trends is the booming Ontario market, where condo building has been strongest in the past few months, the level of multi-unit building is just slightly below the all-time high set in late 2008, he said.
The CMHC data showed the seasonally adjusted annual rate of urban starts decreased by 2.8 per cent to 176,600 units in January, with single starts down by 7.8 per cent and multiple starts up 0.4 per cent.
Urban starts decreased by 35.4 per cent in Atlantic Canada and by 34.4 per cent in Quebec on a seasonally adjusted annual rate. Those sharp declines followed particularly robust gains in those regions in December. From GlobalEdmonton.com
Monday, November 14, 2011
Toronto real estate. What will happen if mortgage rates will go up?
About 12 per cent of Canadian mortgage holders would be challenged if their rate went up by less than one percentage point, found a report from the Canadian Association of Accredited Mortgage Professionals. CAAMP is a national agency that represents 12,300 people who work somewhere in the mortgage industry.
Some 650,000 out of 5.8 million Canadians who have some sort of mortgage would be at risk if their rate went up by as little as less than one percentage point, the agency said in its annual report. Many of those people are on fixed-rate mortgages, and the agency says by the time their mortgages are due for renewal, their financial capacity will have increased and the amount of mortgage debt will be reduced. Indeed, the group's annual report paints a picture of a mortgage market in gradual recovery from the recession. All in all, there's a "gradually falling rate" of people falling behind on their mortgages, the report notes.
But the report also says as many as 175,000 Canadian homeowners — as much as two per cent of the market — may owe more on their mortgages than their homes are worth on the market.
On the other side of the ledger, the report found there are 2.85 million Canadian homeowners who are debt-free on their homes — meaning, they owe nothing on their homes either in terms of a mortgage or home-equity line of credit. And 94 per cent of Canadian homeowners own at least 10 per cent of the equity in their homes, the report finds. Within that, more than three-quarters (78 per cent) own more than 25 per cent of their homes.
But about 75,000 Canadian homeowners own less than 10 per cent of their homes. That figure represents less than two per cent of mortgage holders, but those are the people who could be susceptible to a modest pullback in home prices, as has happened in large parts of Europe and the United States in recent years.
For much of the past year, the Bank of Canada, federal government officials and private sector economists have warned Canadians to get their finances in order and reduce their debt loads ahead of higher mortgage interest rates to come.
"While the forecasts for the economy, housing market, and mortgage market are encouraging, there is, as always, uncertainty about the outlook," the report warns.
And to be sure, the picture of Canada's housing market painted in the CAAMP report looks significantly better than the picture in the United States. A report from real estate data firm Zillow released Tuesday found that 28.6 per cent of U.S. homeowners are underwater — meaning, they owe more on their mortgages than their homes would be worth if they sold them.
Nonetheless, the CAAMP report says a "sizable minority" of Canadian homeowners would be unable to withstand even a one percentage point rise in their mortgage. Although 60 per cent of Canadians are in fixed rate mortgages (the average rate was at 3.92 per cent in 2011, a drop from 4.22 per cent a year earlier) the budgets for a number of homeowners are squeezed enough that they would be in trouble if their rates went up by that comparatively small amount.
"A vast majority of mortgage holders has considerable capacity to afford rises in mortgage interest rates," the report stated. CAAMP estimates that the typical mortgage-holder could withstand an increase of about $750 a month without succumbing.
Canadians owe a collective $982 billion of debt on their homes, and the report estimates that there are about 13.6 million occupied dwellings in Canada.
Within that, about 9.55 million are owner-occupied, including about 5.80 million with mortgages and 3.75 million without mortgages.
Across all homeowners, the average amount owed on a mortgage is $90,000 and the average home-equity line of credit is $12,000. http://www.cbc.ca/news/canada/story/2011/11/09/caamp-mortgage-survey.html
Some 650,000 out of 5.8 million Canadians who have some sort of mortgage would be at risk if their rate went up by as little as less than one percentage point, the agency said in its annual report. Many of those people are on fixed-rate mortgages, and the agency says by the time their mortgages are due for renewal, their financial capacity will have increased and the amount of mortgage debt will be reduced. Indeed, the group's annual report paints a picture of a mortgage market in gradual recovery from the recession. All in all, there's a "gradually falling rate" of people falling behind on their mortgages, the report notes.
But the report also says as many as 175,000 Canadian homeowners — as much as two per cent of the market — may owe more on their mortgages than their homes are worth on the market.
On the other side of the ledger, the report found there are 2.85 million Canadian homeowners who are debt-free on their homes — meaning, they owe nothing on their homes either in terms of a mortgage or home-equity line of credit. And 94 per cent of Canadian homeowners own at least 10 per cent of the equity in their homes, the report finds. Within that, more than three-quarters (78 per cent) own more than 25 per cent of their homes.
But about 75,000 Canadian homeowners own less than 10 per cent of their homes. That figure represents less than two per cent of mortgage holders, but those are the people who could be susceptible to a modest pullback in home prices, as has happened in large parts of Europe and the United States in recent years.
For much of the past year, the Bank of Canada, federal government officials and private sector economists have warned Canadians to get their finances in order and reduce their debt loads ahead of higher mortgage interest rates to come.
"While the forecasts for the economy, housing market, and mortgage market are encouraging, there is, as always, uncertainty about the outlook," the report warns.
And to be sure, the picture of Canada's housing market painted in the CAAMP report looks significantly better than the picture in the United States. A report from real estate data firm Zillow released Tuesday found that 28.6 per cent of U.S. homeowners are underwater — meaning, they owe more on their mortgages than their homes would be worth if they sold them.
Nonetheless, the CAAMP report says a "sizable minority" of Canadian homeowners would be unable to withstand even a one percentage point rise in their mortgage. Although 60 per cent of Canadians are in fixed rate mortgages (the average rate was at 3.92 per cent in 2011, a drop from 4.22 per cent a year earlier) the budgets for a number of homeowners are squeezed enough that they would be in trouble if their rates went up by that comparatively small amount.
"A vast majority of mortgage holders has considerable capacity to afford rises in mortgage interest rates," the report stated. CAAMP estimates that the typical mortgage-holder could withstand an increase of about $750 a month without succumbing.
Canadians owe a collective $982 billion of debt on their homes, and the report estimates that there are about 13.6 million occupied dwellings in Canada.
Within that, about 9.55 million are owner-occupied, including about 5.80 million with mortgages and 3.75 million without mortgages.
Across all homeowners, the average amount owed on a mortgage is $90,000 and the average home-equity line of credit is $12,000. http://www.cbc.ca/news/canada/story/2011/11/09/caamp-mortgage-survey.html
Wednesday, September 7, 2011
News on Canadian mortgage rates and August Toronto market update
The Bank of Canada kept Canada’s key lending rate at the same place it’s been for a year: 1.00%.
As a result, variable-rate mortgage holders can expect prime rate to also stay put at 3.00%.
The BoC said this about its decision: In light of slowing global economic momentum and heightened financial uncertainty, the need to withdraw monetary policy stimulus has diminished. Largely due to temporary factors, Canadian economic growth stalled in the second quarter. The Bank continues to expect that domestic growth will resume in the second half of this year.
As a result, variable-rate mortgage holders can expect prime rate to also stay put at 3.00%.
The BoC said this about its decision: In light of slowing global economic momentum and heightened financial uncertainty, the need to withdraw monetary policy stimulus has diminished. Largely due to temporary factors, Canadian economic growth stalled in the second quarter. The Bank continues to expect that domestic growth will resume in the second half of this year.
The main takeaway here is that the BoC is no longer talking tough about rate increases, as it has recently. That supports the market’s thesis that rates will remain lower for longer.
As always, the Bank of Canada’s overriding goal is to keep inflation near 2% “over the medium term.”
Its next interest rate meeting is October 25. The financial markets expect no rate increase then either.
Fi Greater Toronto REALTORS® reported 7,542 sales through the TorontoMLS® system in August – a 24 per cent increase over 6,083 sales in August 2010. New listings, at 12,509, were up by 20 per cent compared to August 2010. Market conditions remained tight as sales growth outstripped growth in new listings.
"Home sales in the GTA have stood up well despite a less certain economic outlook," said Toronto Real Estate Board President Richard Silver. "Home sales will be bolstered by low mortgage rates moving forward. The Bank of Canada is expected to be on the sidelines until the second half of 2012 or even into 2013. However, home ownership affordability in the City of Toronto could be further improved with the removal of the City's land transfer tax. This tax currently represents a substantial upfront cost for home buyers."
With market conditions remaining tight in the GTA, the average selling price continued to grow strongly in August – up by more than 10 per cent year-over-year to $451,663.
"We remain on pace for the second best year on record for sales. Approximately 90,000 transactions are expected by the end of December," said TREB's Senior Manager of Market Analysis Jason Mercer. "Major home ownership costs, including the average monthly mortgage payment, remain affordable despite the strong price growth experienced so far this year."
As always, the Bank of Canada’s overriding goal is to keep inflation near 2% “over the medium term.”
Its next interest rate meeting is October 25. The financial markets expect no rate increase then either.
Fi Greater Toronto REALTORS® reported 7,542 sales through the TorontoMLS® system in August – a 24 per cent increase over 6,083 sales in August 2010. New listings, at 12,509, were up by 20 per cent compared to August 2010. Market conditions remained tight as sales growth outstripped growth in new listings.
"Home sales in the GTA have stood up well despite a less certain economic outlook," said Toronto Real Estate Board President Richard Silver. "Home sales will be bolstered by low mortgage rates moving forward. The Bank of Canada is expected to be on the sidelines until the second half of 2012 or even into 2013. However, home ownership affordability in the City of Toronto could be further improved with the removal of the City's land transfer tax. This tax currently represents a substantial upfront cost for home buyers."
With market conditions remaining tight in the GTA, the average selling price continued to grow strongly in August – up by more than 10 per cent year-over-year to $451,663.
"We remain on pace for the second best year on record for sales. Approximately 90,000 transactions are expected by the end of December," said TREB's Senior Manager of Market Analysis Jason Mercer. "Major home ownership costs, including the average monthly mortgage payment, remain affordable despite the strong price growth experienced so far this year."
Tuesday, August 2, 2011
Toronto real estate. MORTGAGE NEWS
Financial Institution | 3 Yr | 5 Yr | 7 Yr | 10 Yr | 5 Yr Variable |
CENTUM Primo** | 3.29 | 3.49 | 5.65 | 4.99 | 2.40 |
First National | 3.65 | 3.79 | 4.79 | 4.99 | 2.25 |
FirstLine | 3.79 | 3.89 | 5.04 | 5.24 | 2.60 |
HomeTrust | 3.65 | 3.79 | N/A | N/A | 2.60 |
ING | 3.69 | 3.89 | 4.79 | 4.99 | 2.25 |
MCAP | 3.69 | 3.74 | 4.79 | 4.99 | 2.35 |
3.69 | 3.69 | 4.79 | 5.39 | 2.50 | |
Street Capital | 3.49 | 3.79 | N/A | N/A | 2.40 |
TD | 3.65 | 3.89 | 4.90 | 5.14 | 2.35 |
ResMor | 3.94 | 3.79 | N/A | N/A | 2.50 |
Rates Effective as at: August 2, 2011
Prime Rate: 3.00%
Qualifying Rate: 5.39%
Greater Toronto area home prices accelerated during the second quarter as buyers grappled with a tight supply of residential properties for sale. The heightened competition between buyers has created a seller's market, leading to multiple offers and pushing the median sales price up 10 percent, to $405,000 (about $424,000 in U.S. dollars), in June.
At the same time, active listings declined 24 percent from a year ago in Canada's largest metropolis.
Monday, June 6, 2011
Toronto real estate. MORTGAGE RATE DROPS
Canada's big banks are marking down many of their rates. It's another tenth of a percentage point drop. That means a five-year fixed-rate will cost you 5.39%, while a one-year closed mortgage will cost 3.5 %. Economists cite a weakening US economy putting downward pressure on general borrowing costs.
If you want to buy a house or condo in Toronto, you should start exploring your financing options and consider per-approval first. While there are many different types of loans available to select from, one of the first things you will need to determine is whether you want to work with a mortgage broker or with a bank.
The greatest benefit to working with a Toronto mortgage broker rather than a bank is the fact that the broker works for you. When you go to a bank to secure a mortgage loan, the bank specialist is solely concerned with the interest of the financial institution. The mortgage broker, on the other hand, is looking out for your best interest as he or she searches for the loan and institution that is best for you.
Each time your credit report is pulled by a lending institution, your credit score may take a hit. When you work with a Toronto mortgage broker, your credit report only needs to be pulled once in order to recommend the best options. If you go to multiple banks, on the other hand, your credit report will be pulled each time you inquire into a loan.
When you go to a bank to inquire about a mortgage loan, the bank specialist is only representing one financial institution. When you work with a mortgage broker, on the other hand, he or she works with a wide variety of different institutions. As a result, you have a broader range of loan options to select from. Not only can this help you get the best rates, but it also increases your chances of obtaining approval even if you have poor credit.
After you have submitted all of the necessary information to your mortgage broker, he or she will pass all of the required information on to those mortgage lenders that might be a good fit for you. As such, you are able to submit your information to multiple lenders while only filling out the necessary paperwork one time.
While bank specialists do not require any formal training or license, the same is not true of mortgage brokers. In fact, most provinces require mortgage brokers to meet a strict set of requirements. Mortgage brokers must be licensed and must complete continuing education courses in order to remain licensed. As such, you can be sure the mortgage broker you work with is current on the latest real estate and mortgage financing rules and events.
If your shopping for a mortgage in Ontario look no further. Mortgage agent Alex Malkhassiants offers fast, friendly and experienced advice.
If you have any questions about Toronto real estate, call Alexandre Malkhassiants, Sales Representative and Mortgage Specialist.
Right at Home Realty Inc., Real Estate Brokerage.
Office: (416) 391-3232.
Cell: (416) 723-9383.
E-mail: amalkhass@rogers.com
Website: Toronto real estate
Website: Ontario real estate
Saturday, May 28, 2011
Four banks are lowering residential mortgage rates
Four of Canada’s biggest banks are once again lowering residential mortgage rates at a time when falling government bond yields are cutting funding costs for financial institutions. Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia and Bank of Montreal are all trimming their posted rates on popular five-year fixed-rate mortgages by 0.1 percentage point to 5.49 per cent among other reductions. This is the second time that major banks have lowered that benchmark consumer rate in just over a week. The last time they did so was on May 19 when rates for five-year closed mortgages fell by 0.1 percentage point to 5.59 per cent. RBC, TD, Scotiabank and BMO are also trimming interest rates for a number of other residential mortgage products, including various special offers. This latest round of mortgage rate cuts was prompted by falling yields on government bonds across a range of terms, said TD spokeswoman Barbara Timmins in an e-mail. |
Monday, April 18, 2011
CANADA MORTGAGE NEWS
| Financial Institution | 3 Yr | 5 Yr | 7 Yr | 10 Yr | 5 Yr Variable |
CENTUM Primo** | 3.69 | 4.09 | 5.65 | 5.50 | 2.30 |
Concentra | 3.99 | 4.29 | N/A | N/A | 3.00 |
| First National | 3.69 | 4.19 | 5.10 | 5.34 | 2.25 |
| FirstLine | 4.00 | 4.39 | 5.25 | 5.34 | 2.35 |
| Home Trust | 4.59 | 5.09 | N/A | N/A | 3.50 |
| ING | 3.69 | 4.29 | 4.79 | 4.99 | 2.25 |
| MCAP | 4.09 | 4.14 | 5.10 | 5.50 | 2.35 |
| Scotia | 3.99 | 4.39 | 5.29 | 5.79 | 2.85 |
| Street Capital | 3.79 | 4.29 | N/A | N/A | 2.30 |
| TD | 4.00 | 4.39 | 5.14 | 5.34 | 2.35 |
| ResMor | 3.94 | 4.24 | N/A | N/A | 2.40 |
| Lendwise | 3.65 | 4.02 | N/A | N/A | 2.15 |
Subscribe to:
Posts (Atom)