Crystal Ball Time - no rate increases until Q3 2012

Reuters News agency just released a poll of 40 economists that shows that most economists believe that interest rates will not go up until the third quarter of 2012. This means that people with variable rate mortgages will be able to keep their low rates for another 9-12 months. The vast majority of these economists lowered their expectation of a rate hike for the next 4 quarters.
Economists often do not agree but 95% of them feel that rates will stay the same at the next announcement for the Bank of Canada Overnight rate scheduled for the end of October. This is based on the belief that Canada's economy will continue to weather the recession storm. In addition they expect inflation to remain low so a rate increase to slow the economy will not be necessary. If you are thinking about going for a variable rate mortgage you should know that lenders lowered the discount on their mortgages from Prime rate - .40% to Prime -.10% this week. The difference between a fixed rate and a variable rate now stands at .39%.
If you want to talk to someone about which rate would be best for you, contact me and we'll review your particular situation and you can make an informed choice.

o you have a variable rate mortgage or do you know anyone that does? They could be paying a lot more than they need to.

Prime rates have fallen or remained steady over the last two years and with the latest Bank of Canada decision (April 12th) still unchanged at 1%, most banks prime rates are still at 3%. If you or anyone you know has a variable mortgage that was taken over the last several years chances are they are paying too much and will continue to pay more unnecessarily…why?..... because.. a lot of variable mortgage taken out a few years ago were at prime plus .5% or even plus .75% meaning the rate would be 3.5% to 3.75%!! Today’s variable mortgage are priced at Prime minus .60%.. meaning your rate could go from 3.75% to 2.40%.. That’s a difference of 1.5% which could easily save you thousands and thousands over the next few years even with the penalty to discharge.

With interest rates expected to remain low over the next little while, there is no better time to have a look at your own mortgage and switch or refinance your mortgage along with your other debt into one easy payment. Your mortgage amount might be higher but I can show you how to pay it off years sooner while keeping your monthly cash flow the same which means even greater savings.

Call or email me today and let me show you how this is all possible through Choice, Convenience and Counsel that a true mortgage professional like myself can offer because……why pay more than you have to…. Visit my website to apply.

Bank of Canada signals no interest rate increases for a while

Governor Carney said yesterday that “given current material headwinds, the policy rate can return to its long-run level after inflation is projected to reach the 2 per cent target and output is projected to reach its potential”, highlighting the lack of urgency to tighten. The Bottom Line: Despite the upside surprise to core inflation, the Bank of Canada appears in no rush to tighten given the economic and financial market headwinds that are currently blowing. Low rate environment is here to stay for now. On the downside, low rates mean increase speculation and rising home prices. If you want to take advantage of these low rates and renew your mortgage early contact me to find out how much you can save.

Mortgage Alliance Rally of Hope raises record amount of Money

I just got word today that the Mortage Alliance Company's charity , the MAC Rally of Hope raised over $110,000 to help fight breast cancer. This all started 4 years ago when a head office employee found out her mom had cancer. She decided to run in a local cancer fundraiser to give her mom some moral support.
Mortgage Alliance is unlike many superbroker mortgage companies. Everyone in head office acts like they are from a small town. and like they are family. The president, Michael Beckette and several other people supported her on the run. They decided that as we benefit from the community it was time to pay back for the support of home owners over the years. As a result, a cross Canada motorcyle run was organized. This event involved several head office people as well as individual mortgage associates riding portions of the Trans Canada from Vancouver to St. Johns , Newfoundland.
At a number of cities along the way, gatherings were organized by the local offices to welcome the bikers. The first year about $60,000 was raised. Now, the whole compnay has rallied around breast cancer as our corporate charity of choice.
Please support us when we ask you to buy a bracelet or attend a local function to raise funds. While this started as a Mortgage Alliance effort, we want it to become a community event in every town the motorcycles drive through. Let's face it, every one of those towns is affected by cancer, let's band together to fight this horrible disease. If you would like to help or want to know more about next year's event contact me

Picking a good Mortgage Broker

I recently read an article written by a realtor in Orlando, Florida complaining about mortgage brokers not doing their job correctly. He suggested that you contact lots of mortgage brokers and then pick one.
This could cause a big problem. I don’t advise clients on real estate or law because I leave it up to the professionals who work in that field. In this case, the advice this realtor is giving could result in a ding to the client’s credit score which might prevent him or her from buying the property they really want.
Every time you contact a bank or a mortgage broker, they will obtain a credit report to determine what sort of rate you qualify for . Too many inquiries will lower your credit score and can result in you being denied financing.
The author further says that you should pick a local lender as the financing could be delayed if the lender is too far away. How far away is too far away? I don’t know, but I would suggest that if time is short you pick a lender who is fast. Some lenders in Calgary take a long time while other lenders in Toronto are quick. My suggestion is to leave it up to the mortgage broker.
Finally, I would like to add my suggestions as a mortgage broker. If you are looking for a mortgage broker check out their online presence. Do they seem knowledgeable? Do they write articles or just long winded advertisements. ? In Canada, one way to tell if someone has been in the business for more than 2 years is to see if they have their Accredited Mortgage Professional designation , the AMP.
This tells you that the broker is experienced and takes regular continuing education. In addition, they have taken an ethics course and have swore to put your interests first. (Keep this in mind if you are thinking about going to a bank to get a mortgage. Who do they work for? You or the bank? )
You can find a reputable mortgage broker by going to your provincial mortgage association, in Alberta this is AMBA , or the national mortgage broker’s association which is CAAMP for find a broker in your area. Remember that brokers are licensed for their province only. If you are buying a property out of province ensure that they are licensed for that province as well.

Using a mortgage broker is easy , they do the leg work for you and find you the best rates and terms for your particular situation. Mortgage brokers help take the stress out of one of life’s most important events, the buying of a home.
David Cooke is a senior mortgage consultant with Mortgage Alliance in Calgary , Alberta. If you require further information you can contact David Cooke at his website or on Facebook

More Canadians planning on buying their first home

Genworth Financial Canada, a private mortgage insurance company which competes with CMHC announced today there that there has been a significant increase in the number of people planning to purchase their first home, moving from six per cent in 2010 to 11 per cent in 2011. The results are from an Environics poll "of those Canadians who are considering a first home purchase in the next two years, the most likely group to take the plunge include people under 35 (14 per cent), those with children (12 per cent) and those with incomes between $75,000 and $99,000 (11 per cent)." the poll states. This is good news for home owners. If more people get into the market,particularly first time home buyers, this will allow home sellers to get rid of their present property and move up to a larger home. What was even more interesting was Canadians opinion of financial literacy, understanding financial matters. 95% felt that schools should be teaching financial education. Something that surprised me was that 92% of peple felt that individuals should have a financial education before they can receive a credit card. What a great idea? If people had a better understanding of credit and how finances work we would probably have few bankruptcies and people getting in over their heads with debt. I would welcome this idea. If you have any questions about financing a home contact me . I would be happy to help you .

What NOT to do during your mortgage transaction

What NOT to do during your mortgage transaction!

Having processed hundreds and helped our team process literally thousands of transactions in my career, I’ve come across so many different situations and it goes almost without saying that everyone’s situation is unique. Even more so, it’s important to note that as many things that this guide will educate you about mortgage products and the ‘right’ things to do to successfully obtain mortgage financing, there are also a few pitfalls that I’m happy to be able to help you avoid as well. Here’s a list of a few of the things that I’ve experienced in my career in helping clients with their mortgage needs… I’d recommend avoiding these during the timeline between starting the loan application process until your purchase, building or refinance transaction is complete:

Do NOT change jobs!

A job change may result in your loan application being denied by the lender, particularly if your new position pays less, you decide to go back to school, you’re shifting between fields of work, if by starting you’re placed on probation or if your income structure changes (lower base pay with commissions, full commission, etc…). I’ve seen this happen a few times and the main disconnect here is that borrowers believe that their loan is approved early in the process, lender’s won’t call to re-verify your employment prior to funding the loan. The reality is that lenders can, likely will and this could cause problems for you. Have any questions or concerns as they relate to your scenario? I’m here to help!

Don’t make any large purchases until your mortgage has funded!

A major purchase that requires a withdrawal from your verified down payment (furniture, electronics, vacations) or increases your debt load (vacations, car purchase, financing furniture, business loans, etc…) can result in your not qualifying for your loan. A lender may check or re-verify funds in the days coming prior to funding and your transaction could fall apart at the last minute.

Avoid switching banks or moving your money to another institution!

After your lender has verified your funds at one or more institutions, the money should stay there until needed for the purchase. Fund transfers can take time and if your money has “disappeared”, your approval could be cancelled on you. ** One exception of this is when you’re using invested funds (stocks, mutual funds) are held at a separate institution than your day-to-day chequeing account. As long as we can prove that you’ve owned the funds for 90+ days, we meet the federal anti money laundering requirement and you can safely transfer the funds between institutions.
If you have any questions please contact me .