Increase of 0.6% for 5 year fixed rates

Four big banks have increased their posted rates on fixed mortgages, signaling the start of an upward move on record-low interest rates.

Royal Bank, TD Canada Trust and Laurentian all moved their posted rates on five-year fixed mortgages by 0.6 per cent yesterday, a move followed by CIBC today. Many non-banks have already followed, prompting a surge in requests from variable-rate clients to lock into fixed rates.

"The phones have been ringing off the hook since yesterday," said Donna Ramsay, a Mortgage Architects broker based in Orangeville, Ont. "We have several clients that we have committed to calling to see if they want to lock into a fixed. We tell them that we're not here to tell them what to do -- we'll give them the facts."

The interest rate increase will also mean higher qualifying criteria for new clients, who must meet the five-year posted fixed rate when the new mortgage insurance rules kick in on April 19.

CIBC economist Benjamin Tal told the Globe and Mail the rise in rates along with other factors means the booming housing market will slow down significantly after spring.

"Given where interest rates are now, I still think you'll see an extremely strong spring. However, after that I think the housing market will stagnate," Mr. Tal said. "We are in the ninth inning of this booming house market. We are not expecting a crash, but we will stagnate."

Interest Rates Set to Rise

Interest rates are set to rise today with one major bank already announcing a 0.6% increase in their 5 year fixed rates. There are also moderate increases in the 3 & 4 year fixed rates.

If you are considering purchasing in the near future, it would be wise to secure a rate hold before all of the lenders have followed suit. Generally rate holds last anywhere from 90-120 days and as long as the client takes possession of the new home within that time frame, the original, low rate hold is honored.

Additional Costs to Consider when Purchasing Your Home

Have you ever wondered what other costs are associated with purchasing a home? What are closing costs and how much should you set aside? Closing costs are the legal and administrative fees and disbursements associated with buying your home. They usually range anywhere between 1.5%-4% of the purchase price of your home. Understanding these costs will help you budget more accurately and lead to a more comfortable home buying experience…and hopefully leave you with enough to buy that furniture you always wanted. These costs can include:

• Land Registration Fees
• Legal/Notary Fees
• Fire Insurance
• Home Inspection
• Moving Costs
• Utility Service Hook Ups

Please click on the link below to get more detail on each type of fee.

Additional Costs to consider

Sincerely,
Josephine Ng
www.tdmortgage.wordpress.com

19 Hidden Vale Crescent NW

19 Hidden Vale Crescent NW
Welcome to this beautiful upgraded and refinished home. With vaulted ceilings and hardwood throughout the main floor, you will be proud to call this your new home. The main floor boasts an open floor plan with newer hardwood in the main living areas including the kitchen. There are 3 bedrooms up that are all a very good size and a 4 piece ensuite and a walk-in closet off of the master bedroom. The kitchen was recently renovated in 2009 with dark brown cabinets, quartz counter tops and brand new appliances (which stay). The yard recently had it’s own overhaul of $15k+ putting in a stone retaining wall and a built in fire pit into the wall. The basement is fully finished with Hardwood flooring and many pot lights. There is a large office/den in the basement that is fully sound insulated. The living room downstairs is fully wired for sound and has a dropped ceiling with mood lighting that is perfect for watching movies. You’ll be proud to call this your new home.

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Jared Chamberlain video blogs about is it worth using an area specialists to sell your home in Calgary. What exactly does it take to be an area specialist, or is it better to have a connection and an agent on your side that can interpret the data and info needed to have a successful sale. If you don’t care for Jared’s thoughts or would like to send him a comment, please email him at jared@tcgroup.ca
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Here is a great condo that you are sure to love. It’s located in the heart of Mount Pleasant with an amazing location to top restaurants within a 20 block radius. With confederation park being so close, you will be able to enjoy walks, biking, sledding etc year round.This town home is a two story fully finished basement home. There is a private attached double garage that has access through the underground parking which is heated (very unique). The condo community is one that is very close and has developed their own recycling program. Their are 3 bedrooms up with a 5 piece ensuite and a 4 piece bathroom. The main floor is very open and the kitchen is extremely spacious with plenty of cupboard and counter space. This is a very well cared for home and complex that you will be proud to call home.

Lower rates?

With talks of interest rates going up  in the near future, TD Canada Trust is lowering its residential mortgage interest rates on the 7 and 10 year terms, effective March 23, 2010. This is great news, especially for borrowers who are looking for the additional security of fixed interest rates and longer terms. For those of you that like to stick to a budget, wouldnt it be nice knowing that your interest rate and payments won’t change over the next 7 or 10 years? This is one option to consider , but with the right advice, TD has many products that can save you money and offer you peace of mind. Our special fixed rates are as follows:

7-year closed                4.65%                 
10-year closed              4.99%                  

Rates calculated semi-annually, not in advance. Special rates are at a discount to TD Canada Trust’s posted rates. Call me today to book a rate.

Sincerely,
Josephine ng
www.tdmortgage.wordpress.com

Original Article from TD Media Room

Burn Out

Jared Chamberlain video blogs about how it is important to rejuvenate ones self with breaks. As the real estate market in Calgary heats up, it’s important to take consistent time off to ensure that no burn out is reached. Jared wants to know what you do to stop reaching burn out?
www.chamberlaingroup.ca

Cash-back Mortgages

This afternoon I met with a client to finalize his mortgage and like any mortgage conversation started talking about the competition. This time it wasn’t about the beating of fixed rates but rather a much debated product…cash-back mortgages. When he told me that CIBC was offering 2% cash-back on a 3 year term with an interest rate of 3.3%, I raised my eyebrow. Not because I didn’t believe him but because of the fact that now I will be faced with more conversations explaining to my customers what “the catch” is with these types of mortgages. Before I continue, the offer from CIBC is not what it is. It seems they are giving consumers 2% cash back and a mortgage rate of 3.99% on a five-year rate if they switch their existing mortgage from another financial institution to CIBC.

So what is a cash back mortgage? Cash-back mortgages give you a percentage of your mortgage in cash when it funds.  It can be used for things like furniture, closing costs, or whatever you want. The catch? You’ll usually get the posted rate instead of a discounted rate. So what’s the difference in interest on a $300,000 mortgage for a 5 year term? About $22,000! If you are getting $15,000 in cash back, you will pay another $7000 to the bank. And what happens if you sell your house before the 5 year term is up? Along with the usual fees associated with breaking a mortgage early, some or all of the cash-back may have to be paid back. With most people still choosing the fixed 5 year fully discounted rate or 5 year variable closed rate, there is still a small percentage of people that choose a cash-back mortgage because they do have benefits.

For example, first time homebuyers who may not have enough to buy furniture or do upgrades may want to take out a cash back mortgage instead of using their credit cards to make their purchases. Paying an interest rate of 5.25% interest sounds a lot better than paying 21%. Also, there are some lenders that will allow homebuyers to apply the cash back to their down payment to help come up with the necessary 5%. At the end of the day, there are better ways to get the 5% so you can get better rates. No matter what type of mortgage financing you are looking for, it makes sense to speak to me first.

Original article from Financial Post

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