Not All Gloom and Doom!
Well we have had a lot of changes over the summer! Not only the weather but the Mortgage industry has had some big up and coming changes and our housing market across Canada has been very interesting. I have compiled some great articles to read and please feel free to contact me anytime. The 40 year Amort and the 100% financing will come to end in October on the 13th of 2008.
Your Mortgage Professional,
Steven Faux
Department of Finance Report
Click here to download the Department of Finace Report PDF.
Ottawa Revamps Mortgage Rules
By KEVIN CARMICHAEL, Globe and Mail Update
OTTAWA — The federal government, fearful of a U.S.-style housing bubble, has pledged steps aimed at keeping riskier borrowers in their rental units and away from homes they probably can't afford.
Canada's housing agency will no longer be allowed to guarantee loans with amortization periods longer than 35 years, a move that likely will end the surge in 40-year mortgages, popular because they allowed borrowers to reduce their monthly payments.
Prime Ministers Stephen Harper's Conservative government said Wednesday Canada Mortgage and Housing Corp. will also require a minimum down payment of 5 per cent to get government insurance.
Finance Minister Jim Flaherty and Bank of Canada Governor Mark Carney both expressed concern about the surge in 40-year mortgages over the past year, suggesting the loans were feeding a bubble.
The U.S. housing market collapsed last fall amid record defaults by homeowners who got loans during a period of easy credit at the start of the decade. U.S. officials say their housing problems continue to persist, and many economists say the market's woes have driven the world's largest economy into recession.
“Today's announcement marks a responsible and measured approach by the government to ensure Canada's housing market remains strong and to reduce the risk of a U.S.-style housing bubble developing in Canada,” the Finance Department said in a news release.
The government also said borrowers will require a minimum credit score of 620 to qualify for a CMHC insured mortgage, and that it will demand stronger documentary evidence that borrowers can pay their loans.
The changes take effect Oct. 15 with few exceptions, Finance said in the release.
Economists at Scotia Capital in Toronto said the measures would have a limited impact on Canada's economy, which has gotten a boost from record home buying.
“The changes are more about optics, in comparison to a fairly modest impact upon the economy, housing markets or financial markets,” Derek Holt and Karen Cordes wrote in a note to clients.
Currently, home buyers can get a CMHC-backed mortgage – even one with an amortization period of four decades – with no money down. Such “financial innovation” only came to the market toward the end of 2006, and the “marketplace has been quick to adopt these innovations,” Finance said in a background document explaining the changes.
Still, the government sought to play down the impact of its housing measures on home buyers, while emphasizing that the growth in Canada's housing market is more boom than bubble.
By way of example, the Finance Department said reducing the amortization period to 35 years from 40 years on a loan of $200,000 at 6 per cent interest would result in a $41 increase in the borrower's monthly payment. That borrower would save $49,000 in interest payments over the life of the loan, Finance said.
The department took pains to note that the International Monetary Fund concurs with the government that the surge in Canadian house prices and building is explained by low interest rates, rising incomes and a growing population.
The government said it expects construction of new homes to remain at an annual pace of 200,000 new units for a seventh straight year in 2008, and that bank mortgages in arrears are stable at 0.27 per cent, near the lowest levels since 1990.
For more detailed information on the housing trends see:
Canada Mortgage and Housing Corporation
South Okanagan Real Estate Board
Okanagan Mainline Real Estate Board
Rib-Eye Steaks with Tomato Harissa BBQ Recipe
Harissa is a spicy North African condiment made from chilli, garlic, coriander, and oil, typically served with couscous. Here we’ve blended it with complementary flavours to make it milder and particularly suitable for well-marbled steaks.
For the sauce:
- 2 large dried pasilla chillies (about 1/2 ounce total), stems and seeds removed
- 1 teaspoon coriander seeds
- 1 teaspoon mustard seeds
- 6 tablespoons extra-virgin olive oil
- 1/4 cup ketchup
- 1/4 cup tightly packed fresh mint leaves
- 2 tablespoons red wine vinegar
- 1 medium garlic clove, crushed
- Kosher salt
- 4 rib-eye steaks, about 8 ounces each and 1 inch thick
- Extra-virgin olive oil
- Freshly ground black pepper
To make the sauce: Cut the chillies into 2-inch pieces and place them into a small bowl. Cover the chillies with about 1 cup of hot water and soak them until very soft, 20 to 30 minutes. Strain the softened chillies and place them in a food processor or blender (discard the water). In a small skillet over medium heat toast the coriander and mustard seeds until the mustard seeds crackle. Add the seeds to the chillies along with the remaining sauce ingredients including salt to taste. Process until completely smooth. Set the sauce aside at room temperature.
Allow the steaks to stand at room temperature for 20 to 30 minutes before grilling. Lightly brush or spray both sides of the steaks with the olive oil, and season them with salt and pepper to taste. Grill the steaks over Direct Medium heat until the internal temperature reaches 145°F for medium rare, 8 to 10 minutes, turning once halfway through grilling time. Remove from the grill and allow to rest for about 5 minutes. Serve warm with the sauce on the side along with a green salad and grilled Italian bread, if desired.
Makes 4 servings
Thanks to www.weber.com
Markets this Week > Weekly Market Commentary
Global credit concerns flare up, then ease on better-than-expected results from U.S. lending giants
Although six of the TSX’s 10 sectors advanced on the week, weakness in energy and basic materials prices drove Canada’s resource-heavy S&P/TSX composite index 2.1 per cent lower over the week ended July 17, 2008.
Energy producers weighed heavily on the nation’s benchmark as lower prices for natural gas and crude oil drove the sector 6.3 per cent lower on the week. Natural gas declined 13.8 per cent on the week, bringing its two-week retreat to 22.4 per cent. Crude oil fell almost as sharply -- after reaching a new, all-time high of US$147.27 a barrel July 11, oil slid almost US$18 a barrel, or 12.2 per cent, over the balance of the week.
Meanwhile, gold’s climb toward the US$1,000 an ounce mark this week was offset by weakness in other commodities. As a result, the benchmark’s Materials sector fell 2.2 per cent on the week. Gold rose by more than US$28 an ounce, or 3 per cent, to eclipse the US$970 an ounce mark... more
This article of intrest was presented By Jocko Toic at the Investors Group. If you would like more one on one information, please feel free to contact him at:
Jocko Toic - Consultant
Investors Group Financial Services
2-2429 Dobbin Rd. Westbank, BC V4T 2L4
Ph. (250) 768-4546 Cell (250) 869-9636
Fax (250) 768-9005 Toll Free (866) 768-4546
Email jocko.toic@investorsgroup.com
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Steve's Rates
| Mortgage Term | Our Rates | Standard Rates |
|---|---|---|
| Variable Rate | 4.00% | 4.75% |
| 6 Month Closed | 5.25% | 6.60% |
| 1 Year Closed | 4.90% | 6.65% |
| 2 Year Closed | 5.55% | 6.65% |
| 3 Year Closed | 5.25% | 6.65% |
| 4 Year Closed | 5.50% | 6.99% |
| 5 Year Closed | 5.19% | 5.93% |
| 7 Year Closed | 5.65% | 6.09% |
| 10 Year Closed | 6.00% | 7.45% |
| 15 Year Closed | 6.45% | 0.00% |
| 18 Year Closed | 6.45% | 0.00% |
| 25 Year Closed | 6.55% | 8.65% |
Rates are subject to constant change, for the best rates call 1-866-993-8787.
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