Rates Stay The Same

December 10th, 2011

Canada’s key interest rate will end 2011 unchanged.

The Bank of Canada left its policy rate at 1.00% today, as anticipated.

In a statement, the Bank said European economic performance will be worse than expected, Canadian and U.S. growth are “slightly” better than expected, and inflation will “ease.”

It added: “With the target interest rate near historic lows and the financial system functioning well, there is considerable monetary policy stimulus in Canada.”

Following the announcement, BMO economist Doug Porter told FP: “…I don’t really sense much of a change at all in the bank’s overall view.”

The bond market, which leads fixed mortgage rates, apparently agrees. Yields changed very little in reaction to the BoC’s decision. (5-year bond yield quote)

The next BoC rate meeting is January 17, 2012. As of today, financial markets are pricing in a 10% chance of a rate cut at that meeting and 90% chance of no change, according to Bloomberg.

First Toronto Mortgage via Canada Mortgage Trends

Bond Yields Rise

June 14th, 2011

Bond yields have increased 6 bps (to 2.31%) today. Although this is not a massive increase, mortgage rates generally follow. Here are our best current rates:

1 year: 2.64%
3 year: 3.35%
5 year: 3.54%
10 year: 4.99%
Variable: 2.15%

First Toronto Mortgage (http://firsttorontomortgage.com/)

What Are The Current Mortgage Rates?

May 10th, 2011

Although rates are still expected to increase in the future, special 5-year mortgage rates are currently still below 4.00%! I have summarized our brokerage’s best mortgage rates below:

3-year fixed: 3.55%
5-year fixed: 3.87%
5-year variable: 2.25%
HELOC: 3.25%

We also offer 40-year amortization periods on conventional mortgages, which will reduce your monthly payment greatly!

First Toronto Mortgage (http://firsttorontomortgage.com)

Closed Or Open Mortgage? Which Is The Better Choice.

May 4th, 2011

Open mortgages can be paid out at any time without any penalty. You can also make additional mortgage payments without incurring any penalty. Open mortgage terms can range from 6 months to 5 years and can have either a variable or fixed rate, just as a closed mortgage.

Closed mortgages carry a lower interest rate than open mortgages. However you cannot pay out a closed mortgage early without a penalty. Also you cannot make additional mortgage payments above and beyond a certain percentage (as outlined in the mortgage agreement). Closed mortgage terms can range from 6 months to over 10 years and can have a fixed or variable rate.

Closed mortgages are more popular because of their lower interest rate. However open mortgages give you the flexibility to make extra payments and/or payoff the entire loan at any time without penalty. As a result if you are planning a large inflow of cash and are planning to pay off the mortgage sooner than scheduled, then an open mortgage is a wise choice. However if you are not planning to payoff the mortgage early or make any major additional payments above and beyond the determined amount, then it would be smarter to choose a closed mortgage to take advantage of the lower interest rates.

First Toronto Mortgage (http://firsttorontomortgage.com)

How To Pick A Good Realtor

April 27th, 2011

Here are a few tips to picking a good real estate agent.

1 – Experience isn’t everything! Some experienced real estate agents are so busy, that they may not allocate any of their time towards your deal. Do not overlook the young, eager realtor!

2 – Location, location, location! Pick a realtor that specializes in your area. Each area in Toronto is different, so pick an agent that knows it!

3 – Avoid the double agent! If a realtor is selling a house that you are considering buying, it is best to avoid them. Do not use an agent representing both the seller and buyer, as some agents will give preferable treatment to the seller and the commission.

4 – Good agents don’t work 9-5, they work 24/7! Pick an agent that is accessible evenings and weekends. The real estate market is competitive and a good realtor is available during non-business hours!

5 – Pick an agent that understands your needs! Everybody is different and buys homes for different reasons. Make sure your realtor understands your needs, so they can make the best suggestion.

6 – Pick an agent you get along with! Buying a home is a big decision and takes time. You might as well work with somebody you enjoy talking to.

First Toronto Mortgage (http://firsttorontomortgage.com)