Mortgage Rates for December 10 2007

I post the best mortgage rates in each category.

Vancity has changed its rates to 6.15% for 7 years and 6.40% for 10 years.
Our best rates remain unchanged from this morning.

Duncan's Best Mortgage Rate Pick’s
6 month open - 8.55%
6 month closed - 5.95%
1 Year Open - 9.20%
1 Year Closed - 5.55%
2 Year Closed - 5.65%
3 Year Closed - 5.70%
4 Year Closed - 5.85%
5 Year Closed - 5.89%
7 Year Closed - 6.05%
10 Year Closed - 6.15%

VRM-Closed: P -. 75% VRM-Open: P - .50%
Bank of Canada Rate: 4.25%
Prime Rate (P): 6.00%

Have a great week and and if you have any questions about mortgages in BC visit us on the web.

Mortgage Rates for December 7 2007 Updated

I post the best mortgage rates in each category.

Vancity has changed its rates to 6.15% for 7 years and 6.40% for 10 years.
Our best rates remain unchanged from this morning.

Duncan's Best Mortgage Rate Pick’s
6 month open - 8.55%
6 month closed - 5.95%
1 Year Open - 9.20%
1 Year Closed - 5.55%
2 Year Closed - 5.65%
3 Year Closed - 5.70%
4 Year Closed - 5.85%
5 Year Closed - 5.89%
7 Year Closed - 6.05%
10 Year Closed - 6.15%

VRM-Closed: P -. 75% VRM-Open: P - .50%
Bank of Canada Rate: 4.25%
Prime Rate (P): 6.00%

Have a great week and and if you have any questions about mortgages in BC visit us on the web.

Mortgage Rates for December 7 2007

I post the best mortgage rates in each category.

Duncan's Best Mortgage Rate Pick’s
6 month open - 8.55%
6 month closed - 5.95%
1 Year Open - 9.20%
1 Year Closed - 5.55%
2 Year Closed - 5.65%
3 Year Closed - 5.70%
4 Year Closed - 5.85%
5 Year Closed - 5.89%
7 Year Closed - 6.05%
10 Year Closed - 6.15%

VRM-Closed: P -. 75% VRM-Open: P - .50%
Bank of Canada Rate: 4.25%
Prime Rate (P): 6.00%

Have a great week and and if you have any questions about mortgages in BC visit us on the web.

The US Economy Remains Strong | Good News for Canada

The New York Times this morning led with an article that stated that the US has added jobs during the month of November. The article goes on to say… “That economists had raised their estimates for today’s report after a separate employment survey showed an unexpected surge in November payrolls. But the Labor Department’s report, considered a bellwether for the broader economy, showed more modest gains, with a jump in service-sector and government jobs but declines in factory and construction payrolls.

The report reinforces investors’ expectations that the Fed will lower interest rates again at its meeting on Tuesday. Some market participants have called for an aggressive half-point cut, but continued strength in the job market may make a quarter-point cut more likely. Central bankers have said they intend to avert a recession, but several are wary of sparking inflation with an unnecessarily sharp cut.”

Can a rate cut from the Bank of Canada be far behind as the central bank tries to moderate the Canadian dollar against the US dollar. Mortgage rate declines are still in question because the impact of the subprime crisis and its impact on the Bankers Acceptance rates which drive mortgage rates.

The delay in the recession will give the bankers an opportunity to sort out the subprime mess without the complication of a recession.

Duncan Seward is a mortgage broker in BC. Duncan’s business focus is as an advocate for people who have been turned down by conventional lenders. He specializes in second mortgage with bad credit in BC and debt consolidation mortgage loans in BC.

True to Form | We Made A Mistake and You Pay

In the past month, all of the major Canadian banks have quietly moved to cut the discount they provide on mortgages. Why?, their profits have strung because their borrowing costs have increased. A significant reason for the increase in costs is due to the subprime scandal.

Discounts off prime hover around .60%, less then 2 months ago the discount was .90 percentage points off. With prime at 6.00%, it means the difference between a mortgage rate of 5.40% versus 5.10% which could mean an additional $1,500 of interest on an average Canadian home over 5 years.

The move to sharply reduce discounts is not just limited to variable rate mortgages. The banks have also cut how much they are willing to lop off longer term mortgages, including the five-year closed mortgage which remains the most popular product in Canada.

The move by the banks is typical. They made a mistake and now Canadian consumers will have to pay for it.

Duncan Seward is a mortgage broker in BC. He is an advocate for people who have been rejected by conventional lenders. Duncan’s business focus is on second mortgages in BC and debt consolidation in BC.

Mortgage Rates for December 5 2007

I post the best mortgage rates in each category.

Duncan's Best Mortgage Rate Pick’s
6 month open - 8.55%
6 month closed - 5.95%
1 Year Open - 9.20%
1 Year Closed - 5.55%
2 Year Closed - 5.65%
3 Year Closed - 5.70%
4 Year Closed - 5.85%
5 Year Closed - 5.89%
7 Year Closed - 6.05%
10 Year Closed - 6.15%

VRM-Closed: P -. 75% VRM-Open: P - .50%
Bank of Canada Rate: 4.25%
Prime Rate (P): 6.00%

Have a great week and and if you have any questions about mortgages in BC visit us on the web.

BC Housing Numbers Slip | Is There a Stop to the Slide

Housing starts declined in BC. A decline of 9.8% from August to September was recorded by Statistics Canada. This number is deceiving since the current level of housing starts are at near all time high.

It is signaling a slow down in the BC economy. One of the chief benefits of a cooling housing sector is that prices will moderate. The BC housing market has been criticized for becoming unaffordable. A slow down in activity and the consequent moderate will ensure a vibrant market and keep housing prices in real.

The net effect of the higher prices in BC will be the adoption of longer term mortgages. The 35 and 40 year amortization mortgages will be adopted by mortgage buyers to keep mortgage payments affordable.

Affordability will be key to keeping the housing market vibrant. As American investors retreat due to the higher Canadian dollar and more attractive buys in the US, it will be important to ensure that the local buyers can afford to remain in the market to pick up the slack.

One market segment that could assist in keeping the housing market is the clients who do not fit inside the conventional lender matrix. Clients who have had past credit difficulty in either through debt consolidations or poor credit can obtain highly competitive mortgages. The numbers of these potential buyers are in the thousands. The represent a potential pool of buyers that could be tapped to ensure the housing market remains vibrant.

Duncan Seward is a mortgage broker in BC who specializes in the alternative mortgage market. He is an advocate for people who have been turned down by conventional lenders for second mortgages in BC and mortgage loan refinance and debt consolidation in BC.

Mortgage Rates for December 4 2007

I post the best mortgage rates in each category.

Duncan's Best Mortgage Rate Pick’s
6 month open - 8.55%
6 month closed - 5.95%
1 Year Open - 9.20%
1 Year Closed - 5.55%
2 Year Closed - 5.65%
3 Year Closed - 5.70%
4 Year Closed - 5.85%
5 Year Closed - 5.89%
7 Year Closed - 6.05%
10 Year Closed - 6.15%

VRM-Closed: P -. 75% VRM-Open: P - .50%
Bank of Canada Rate: 4.25%
Prime Rate (P): 6.00%

Have a great week and and if you have any questions about mortgages in BC visit us on the web.

Subprime Mortgages | The Canadian Difference

Over the last 5 years there have literally been thousands of new mortgage brokers entering the market in Canada and the US. A great many anticipated that they had found a cash machine. Financial institutions would lend to anyone who could just about fog a mirror. It was so easy in Canada at one point that an investor or home-buyer could get a mortgage just by ‘declaring’ their income, no proof required.

Fortunately in Canada, our Bank Act has forced our lenders to be more conservative. In fact, all loans in excessive of 80% of the property’s value must be insured, protecting the lender from loss.

As well the percentage of sub-prime lending is substantially less in Canada. In mid 2007, over 21% of mortgages in the U.S. were sub-prime compared to only 5% in Canada. Of this 5%, all are insured against loss.
You could also see why many individual buyers were caught up in little or zero down, what could be better than that???

While Canada is approaching a record low number of mortgages in arrears, only 0.24% according to Canadian Bankers Association, we will see an increasing number of U.S. loans go into default, as $850 Billion of their sub-prime loans become re-set with much higher interest rates and higher payments between now and June 2008. So watch for an increased tightening of credit availability across North America as Canadian lenders respond to U.S. results.

Duncan Seward is a mortgage broker in BC who specializes in the alternative mortgage market. He is an advocate for people who have been turned down by conventional lenders for second mortgages in BC and for mortgage loan refinance and debt consolidation in BC.

The Big Flip | Time to Cash In?

The big change of the valuation of the Canadian dollar with respect to the US dollar is encourage US investors in BC real estate to consider cashing out.

A combination of the increase in property values in BC plus a big change in the exchange rate is motivating US investors to consider selling their Canadian properties.

Downtown Vancouver condo’s are being listed in order for their owners to repatriate their dollars. It is now much less attractive for US investors to purchase in Canada relative to the increasingly cheaper US properties that are available. Real estate agents have said that their US investors have dried up.

The BC property registry has documented that US buyers are selling faster then they are buying. A mass exodus is unlikely due to the forthcoming Olympics. The opportunity to attend the Olympics is a big attractive for the US owners, but after the Olympics who knows.

Duncan Seward is a mortgage broker in BC who focuses on the hard to place business. Duncan business fills in the gaps where the banks do not want to lend.

Will Insanity Prevail? | Has The Market Turned in BC

Condo sales have slumped in Vancouver according to Price Waterhouse Coopers. 50% of all activity in downtown Vancouver is due to speculators. Condo sales have dipped by 33% from the previous quarter states PWC.

Unsold inventory in Burnaby/New Westminster grew from 315 units in early July to 825 units at the end of September, while sales in the Downtown/West End area kept pace with new product coming on the market.

As well, low-rise condo sales plummeted by almost 60 per cent to 620 units from 1,480 in the second quarter, reflecting slowing demand in south-east suburban markets.

The decline in sales has been reflected in the asking prices for low-rise condos.

And finally, the Sales of townhouses also dropped 45 per cent to 370 units. PWC does not expect to see major change in these third-quarter trends.

Has the bloom gone off the rose. If you are in the market it would be wise to check current pricing. This decline in the market may signal a return to more reasonable pricing for home buyers with poor credit.

Duncan Seward is a mortgage broker in BC whose focus in on the second mortgage loan clients with bad credit in BC.

The Lighter Side of the Subprime Mess

A video concerning the implications of the subprime mortgage mess. While the humor is black, the video provides an interesting overview of how the market stepped into the mess.

40 Year Mortgages | Lower Payments But At What Cost?

Do not pay until 2047. It has a nice ring to it for Canadians who are committed to home ownership but unable to afford the price tag that comes with buying property. No wonder with the price of houses in the Vancouver market.

The reality is the level of speculation in the market has impacted home buyers significantly. Add up the development fees required by the municipalities, transfer fee grabs by the provincial government and the GST for the feds, it is no wonder there is no money for a down payment and even less cash to make monthly payments?

If the Canadian real estate industry hadn’t introduced the 40 year amortization, the robust BC economy that is based on residential construction would come to a screeching halt.

Duncan Seward is a mortgage broker in BC. He helps worthy people who don't fit in the banker's box get the mortgage they want. Quickly, painlessly and at highly competitive rates.