rates move up - new products- and more....

The great white north is engulfed in an arctic high - vehicles creak and moan with the cold - and the bond market bounces around like a ping pong ball. The 5 year govt of canada bonds are currently yielding approx 4.115% - which is up from 4.04% on january 23rd...this has triggered an increase in 5 year mortgage rates to approx 5.30% from 5.09%.. how long will it last ?....that is the million dollar question..
but dont forget - we can lock in rates for 120 days into the future - so it is possible to protect the 5.09% until approx June 1st. For those purchasing or who have mortgages coming up for renewal between now and June 1st - this is the time for protective action.
Also new on the market - 75% lines of credit for rental properties at prime plus .25% (this is a great way to have flexible access to funds on a rental property...however the rate is currently 6.25% floating......)
100% financing at discounted rates
amortizations up to 40 years
stated income mortgages
refinances up to 95% and even second mortgages up to 100% -
where will it all end ?

interest rates move up ...but for how long ?

with the temperature hovering at minus 17 celsius (minus 30 with the winchill) the only thing heating up around here - are the interest rates.
Canada bond yields have increased and driven the 5 year mortgage rate from 5.09 to 5.30% - the question remains for how long ?
Bank of Canada Governor Dodge - maintains the economy will continue to pick up pace.....unless - the US consumer decides to batten down the hatches and the US economy slows - but he figures its a remote possibility...hello ....are you paying attention - housing sales in the US are down - the market is rocky - gold is on the increase and the US dollar is weak -.....I think there is more of likelihood the rates will drop as the US economy slows - but time will tell.. For the conservative borrower its still a great time to lock in low rates - for the aggressive borrower - the floating rate with a bias towards a 6 month front end load is likely the best - call us for details 613-563-5083 / bill

Candian Inflation lower than expected

welcome to frosty tuesday - well canadian inflation figures have come in lower than expected - due to lower auto and clothing costs. I dont know about you but i dont buy a car everyday and after christmas i am not going to spend a fortune on a new wardrobe. So what I am saying is the government keeps saying inflation is low - but if we look in our pockets the money seems to disappear faster. Now is the time to consider the new 100% financing for up to 40 year amortization - if you know someone who is renting with good credit but they just cant save enough money for a downpayment - they should be calling us to see if we can get them into their own home...Kiss your landlord goodbye - become your own landlord - call bill or joanne 613-563-5080 / 613-563-5083
for a FREE CONSULTATION>...back to my greygoose on ice.....

US football sunday....

as i watch the end of the game between new orleans and chicago - it would appear chicago is headed for superbowl 41 in miami on february 4th.
this week coming up - we will see how the oil inventories have faired - as the cold snap across the US and Canada may deplete reserves - we have had a very mild winter to date which has allowed for a drop in oil prices from 65 per barrell to approx 52 - and as such cdn markets have dropped - if oil prices strengthen - there may not be a need to reduce interest rates - time will tell .....stay posted for more updates.

cold as ice....rates moving a bit..

its cold and windy with some minor snow squalls - david dodge the bank of canada governor announced yesterday - he was surprised by the slow down during the final quarter of 2006 (i dont know why - common sense would tell you the US was slowing and we would follow - as oil and gold softened). The bank of canada kept the rates steady and appear to be comfortable with rates as they are - they are projected growth to grow to appr 2.8% later in the year - likely due to strengthening oil and gas along with stronger gold prices - this could cause rates to ease a bit if they think it is growing too fast - I suspect any drop in rates will be seen in late 2007 or early 2008. Time will tell

on the radio sat jan 20th - cfra ottawa 3pm

hi everyone - i will be on the radio CFRA 580 AM on saturday jan 20th as part of the experts on call radio series.
discussing some of the following
-refinancing to consolidate debt and reduce monthly costs
-refinance for renovations - up to 95% financing at discounted rates
-amortizations up to 40 years
-up to 100% financing at fully discounted interest rates-
120 interest rate guarantees
fixed or floating interest rates - what should you choose now ?
mortgage renewals - dont settle for high than discounted rates - 120 day protection prior to maturity.

Canadian interest rates possibly on the move

Welcome to the middle of January - the eastern portion of Canada has endured the first major winter storm approx 15cm (6 inches) and the weather is currently minus 24celsius with the windchill (minus 11 fahrenheit).
The bank of canada has left the current bank rate constant this morning but mortgage rates are possibly on an upward swing - especially on the long end of the bond market rates.
the 10 year canada's have moved from 4.07 to 4.15 in the past week
and the 5 year has moved from 3.98 to 4.06
with current 5 year money at 5.09 and 10 year at 5.60 there is very little spread and the possibility exists for a move to 5.25 and 5.75% - but time will tell.
Inflation has scared some people - the government maintains it is low - but check your pockets it costs more for everything.....inflation is moving
stay tuned for further details
bill

mortgages in canada 2007

well the new year is upon us - the prevailing thoughts are for lower rates during the second quarter with rates dropping approximately .25-.50 per cent in the medium to long term...now is the time to sit with a variable rate mortgage with the option to lock in at any time to a discounted interest rate.