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| Our Rate of the Day - 1.85% | ||
| TERM | OURS (APR) | POSTED |
| variable | 1.85% | N/A |
| 1 yr | 2.30% | 2.25% |
| 2 yr | 2.85% | 3.65% |
| 3 yr | 3.25% | 3.95% |
| 4 yr | 3.69% | 4.30% |
| 5 yr | 3.69% | 5.04% |
| 7 yr | 4.95% | 6.30% |
| 10 yr | 5.20% | 6.50% |
http://www.bankofcanada.ca/en/fixed-dates/2010/rate_200710.html
OTTAWA – The Bank of Canada today announced that it is raising its target for the overnight rate by one-quarter of one percentage point to 3/4 per cent. The Bank Rate is correspondingly 1 per cent and the deposit rate is 1/2 per cent.
As expected, the Bank of Canada has increased the overnight rate from 0.25 % to 0.5%.
This means that if you have a Variable Rate mortgage your interest rate just increased by 0.25%. The Prime Lending rate is now 2.5%
We have some great rates from Lenders offering Prime -0.6%, which right now is only 1.9% interest. Still a great interest rate!
Sarah Hurson, Mortgage Agent#09002165
Sarah began investing in property in 2001 with the purchase of her first home. Since then her and her husband have acquired 13 properties. Some of them good investments; and some of them what she likes to consider “part of our learning curve”. Sarah was frustrated with the management of her Mortgage portfolio; and so she decided to take control and become a licensed Mortgage Agent, so that she could not only manage her own portfolio but also help others using her experience.
Sarah specializes in mortgages for Multi-plex residential, commercial, and investment properties. However she has also gained quite a good reputation for working with people who do not have perfect credit, and require extra help placing a mortgage that may otherwise not be possible through the traditional banking channel.
If you are looking at any type of investment property Sarah will prepare for you a complimentary financial assessment and ROI calculation demonstration on the property.
If you have “bruised” credit and are having trouble getting a mortgage through traditional channels call Sarah, she will not rest until she has exhausted all possible solutions for you. Plus she will provide you with free credit repair advice!
How will HST affect Buying or Selling a Home in Ontario as of July 1st?
The new tax will take effect on July 1, 2010. The HST tax will effectively combine the Provincial Sales Tax of 8% percent with the Federal GST Tax of 5% percent, to create a new “harmonized” total tax of 13% percent. This new tax will be applicable to many real estate services which hitherto only had one or the other tax applied.
- there is no HST tax payable on the sale of a resale home (residential).
- home buyers and sellers will have to pay extra tax on a range of services associated with the real estate transaction: services such as legal fees, moving costs, real estate commissions and home inspection fees. Currently, consumers only pay the 5% Goods and Services Tax (GST) on these services.
In a nutshell, after July 1, 2010, if you are a seller, there will be a 13% percent tax payable on the real estate commission you pay – currently there is only the 5% percent GST payable on this fee. Your lawyer’s fee will also be subject to the 13% percent HST.
If you are a buyer, any Home Inspection you pay for will be subject to the 13% percent HST. And so will the cost of movers hired. In addition, the cost of the CMHC premium for “high-ratio” mortgages has traditionally been taxable for PST – this amount will now be taxable for the full 13% percent HST.
It will be interesting to see what the new HST tax does to our Housing Market in Ontario. Certainly affordability is going to be affected as legal fees, home inspection fees, mortgage insurance premiums, and real estate commissions will cost more. Add into the fact that the interest rates are on the rise, our market will inevitably be affected.
If your credit, income & debt situation places you just out of reach of qualifying for a mortgage a Rent-to-Own Program might be the perfect solution for you!
How does the process work?
First a qualified Mortgage Specialist will complete a Free, Confidential, Financial Assessment on your situation to determine how close you are to getting your own mortgage.
A report will then be prepared (free of charge) to give you a step by step plan of action, including a timeline, to show you what needs to be done to qualify for a mortgage with as little as 5% down payment.
If you qualify for your own Mortgage, you will continue to work with a Mortgage Specialist. However if you are a good candidate for the Rent-to-Own program, we will then put you in touch with a Rent-to-Own Specialist.
We are then involved during the Rent-to-Own program to help you qualify for the House you are Renting-to-”Own”. When your goals are satisfied our Mortgage Specialists will help you complete the transaction to BUY THE HOUSE ON YOUR OWN!
But what is a Rent-To-Own Program?
There are various ways that Rent-to-Own programs work, but generally what happens is that you are required to put down a “Deposit”, and then a portion of your Rent payments each month go towards your Down Payment (as well as the initial deposit). The goal then is that in 1 or 2 or 3 years time your down payment of 5% is already saved, and you can buy & take title to that house on your own.
One of my favorite Rent to Own Programs is Huntmore Investments
For more information please contact us at 1-866-712-3943
or via email mortgages@dropmyrate.ca
Bruised Credit? Previous Bankruptcy? Items in Collections?
There are mortgage solutions available to you with as little as 15% down (equity).
New purchases
Refinancing
Mortgage Renewals
FREE CREDIT REPAIR ADVICE
Not only do we offer mortgage solutions, we also offer free Credit Repair advice. You will receive free of charge a complete analysis of your current financial situation and a step by step plan of how to repair your credit.
Contact one of our Mortgage Professionals today to get started!
Complete the confidential comment form below, or use our Contact Page,
Toll free 1-866-712-3943
email mortgages@dropmyrate.ca
Are you self employed? Concerned about how the new CMHC Mortgage Insurance Rules affect you?
If you have NOT been in business for 3 years (but in the same type of work for 2 years even if not self employed) AND
You do NOT claim / declare all of your income then you have access to the CMHC insured financing for purchase transactions up to 90% LTV or 85% for refinances
Purchases: with as little as 10% down (90%LTV)
Refinances: up to 85% of the value
Other requirements:
-Income taxes must be paid and up to date
-Must provide copy of business or GST licence, or Articles of Incorporation
-Min credit score 600 (to qualify for 90% purchase credit scor must be 650+) for 90% purchase or 85% refinance generally you can not have any late payments for last 2 years
For more information please complete our confidential comment form below, or on our Contact Page or email
mortgages@dropmyrate.ca
Are you self employed? Concerned about how the new CMHC Mortgage Insurance Rules affect you?
If you have been in business for 3 years AND
You claim / declare all of your income & your income is verifiable by a Third Party; i.e. Revenue Canada via Notice of Assessment & Tax Return, or Audited Financials Statements for your business then you have access to the same mortgage products as salaried borrowers.
Purchases: with as little as 5% down (95%LTV)
Refinances: up to 90% of the value
Other requirements:
-Income taxes must be paid and up to date
-Must provide Notice of Assessment, and financial statements prepared by practicing accountant
-Min credit score 600
For more information please complete our confidential comment form below, or on our Contact Page or email
mortgages@dropmyrate.ca
As a newcomer to Canada it is possible for you to purchase your own home with as little as 5% down.
CMHC offers the following program to new residents:
Features
Newcomers with permanent resident status have access to all CMHC
Mortgage Loan Insurance products (subject to product specific eligibility
requirements).
For permanent residents, where there is limited Canadian credit history
and where foreign credit bureaus are not available, CMHC continues to
consider alternative sources of payment history for Loan-to-Value ratios
between 80.01% and 95%
Newcomers with non-permanent resident status have access to CMHC
insured financing of up to 90% loan-to-value ratio for the purchase of a 1
unit owner-occupied residential property
No additional fees or premiums as a result of residency status – standard
product specific premiums apply
No minimum period of residency required
If you have any questions you may contact one of our Mortgage Agents to discuss YOUR options, either complete the confidential comment form below, or use our Contact Page,
Toll free 1-866-712-3943
email mortgages@dropmyrate.ca
The Bank of Canada announced yesterday that they would maintain their overnight rate at 0.25%.
This means that the Prime Lending Rate will remain for now at 2.25%. The next chance for the Bank of Canada to raise their rate is June 1st. It is expected at that time that they will start to increase the rate.
Variable Mortgage rates, which are tied to the Bank of Canada overnight rate and the Prime Lending Rate, remain unchanged as a result.
Lenders are currently offering 5 year Variable Mortgages at Prime – 0.5%. This means that you can lock in these terms for 5 years. The Interest Rate of 1.75% would be your interest rate now until the bank of Canada raises their rate. Then your interest rate would go up, probably by 0.25%. Your monthly (or weekly or bi-weekly) payment will also go up.
Current 5 year fixed rates are sitting at 4.39 %(best rate out of 30 lenders). Only if the Bank of Canada increased their overnight rate 10 times during the term (5 year), would you be paying equal to or more interest than a variable rate mortgage. Remember that a variable rate mortgage can always be converted to a fixed rate mortgage at any time during your term as long as you stay with the same lender.
