Welcome to 2010!
Hello and welcome to the first Mortgage News Letter of 2010. I am very pleased to be sending this to you today. I trust you had a safe and Happy Holiday with your family? I know that the time off gave me a great opportunity to focus on the important details of the information I can provide this year. I had the opportunity to really relax over the holidays and re-charge the batteries.
That being said, I want to Thank You as with the support of the readers and clients referred by You the Reader, this has allowed me to do what I love to do Best... Provide The Best Mortgages. I have spent a lot more time with questions on Refinancing and Debt Consolidation. A considerable amount of calls and emails on credit awareness and how to better gain a higher credit score. I will base the coming News Letters off of the emails that have been sent to me.
I am focussing on new partnerships with Professionals in the same field. This may allow you to obtain their services at a better rate. I have some great partnerships already and look to strengthen my Business with them too.
I wish you and your family and your friends all the very best in the coming year and certainly Thank You in advance for your referals.
Your Mortgage Broker, Steven Faux
Canada may require higher mortgage downpayments: report
Mon Dec 21, 11:24 AM
OTTAWA (Reuters) - Canada may require people taking out mortgages to come up with a larger downpayment if it looks like indebtedness is getting too high, Finance Minister Jim Flaherty said in a interview released late on Sunday.
Flaherty's remarks echoed concerns voiced last week by Bank of Canada Governor Mark Carney about households' ability to pay down debt. Household debt relative to income has risen sharply though it is below U.S. and British levels, and Carney warned consumers not to assume that interest rates will stay low.
"If we see further evidence that there is excessive demand in the housing market or that there's an indication that people are taking on obligations that they will not be able to handle in the future when interest rates rise, then we will take some action," CTV television quoted Flaherty as saying.
"The likely action we will take is to increase the size of the downpayment from 5 per cent to a higher number, reduce the amortization -- bring it down from 35 years to something less."
Shortening the amortization period would mean mortgage payments would have to go up to pay the loan off more quickly, and might make people think twice about taking on more debt.
The interview with Flaherty is expected to air on the program Question Period on Sunday.
(Reporting by Randall Palmer; editing by Rob Wilson)
Real Estate News
CALGARY - The Ross family's quest to get more house for their buck ran aground in 2008 as the depressed Calgary area resale market produced the lowest number of house sales in 13 years.
But their next dive into the market this past summer resulted in a success story beyond what Dwight, Tanya and their two sons had anticipated.
"We moved from really expensive dirt to less expensive dirt and in the process we ended up with a lot more space, a newer home, and got a few other bonuses, including a view and separate bedrooms for the kids and a bigger garage," said Dwight, 46, an information officer for a Calgary engineering company.
"It was actually a financial downsize but a house upsize, and quite substantial, too," he added. "We went from about 2,700 square feet to over 4,000 square feet."
The downside is that their new home in Tuscany on the west end of Calgary requires a longer commute to work downtown - Tanya is in human resources for an oil and gas company - than from the inner-city house in Collingwood they had owned for five years.
Year-end statistics published by the Calgary Real Estate Board Tuesday show that 2009 was a recovery year after a dismal 2008 but still fell well short of the records set in 2007.
CREB president Bonnie Wegerich said she doesn't expect to see a repeat of the climate of 2007 - when the average single family home price peaked at $505,920 in July and condo prices hit a record $332,237 in May - but that's not necessarily a bad thing.
"I don’t think we're going to see as hectic a market for a couple of years," she said. "I think what we'll see is a nice sustained recovery. Those days we're really hectic and really insane.
"I think it's nicer for the buyers, too, if prices are stable and they know that what they're buying today is going to still be worth that in a year or maybe up a few per cent."
In 2008, single-family home sales were the lowest since 1996, at 13,455, down 27 per cent from 2007, while the average sale price fell 2.5 per cent to $460,327 and the median price dropped by 2.9 per cent to $409,000.
Statistics from this past year show 14,440 single family home sales in the city, up seven per cent over 2008, and an average sale price of $442,237, a four per cent decline. The median price also fell about four per cent to $392,000
The condominium market, which plunged by 31.3 per cent to 5,661 sales in 2008 compared with 2007, grew by 12 per cent to 6,328 in 2009.
The average condo sale price dropped six per cent to $283,734 from $302,408 in 2008 (which was down 4.4 per cent from 2007) and the median price, at $260,000, was off by seven per cent from 2008 (when it fell 5.3 per cent from 2007).
December illustrates the recovery part of the story, with 799 single-family homes sold in the city, a whopping 78 per cent increase over December 2008, when just 449 traded hands (a 47 per cent slide from 2007).
The average monthly price jumped to $451,349, up eight per cent from $417,398 in December 2008 (which was down 6.2 per cent from 2007) while the median price was $401,000, up five per cent from December 2008.
The number of condominium sales for December 2009 was 341, well ahead of the 205 in December 2008, while the average price of $288,640 showed a five per cent increase.
Inventory in December was down. New single family listings in the city in December totalled 806, down four per cent from December 2008. New condo listings in the city in December were 444, up three per cent from December 2008.
Wegerich said interest rates are expected to rise this year and that prospect may encourage more buyers to get into the market.
Todd Hirsch, a senior economist with ATB Financial, said housing activity should be stable this year.
"I would expect that the year will be pretty flat, not a lot of excitement up or down," he said.
"We're still going to see good movement because mortgage rates are still favourable and I think people have a sense we want to get in on it now because rates will be going up."
Dwight Ross said he and his wife had been watching the market closely before deciding to move this year. The Collingwood home, sold by Justin Havre of CIR Realty, attracted two competing bids and actually sold for a price that was higher than listed.
The house in Tuscany they had been keeping an eye on was still available and they made the successful transition in November, cutting their debt load by more than $100,000.
Wegerich said a buyers' market a year ago has transformed into a balanced market.
Steve's Rates
| Mortgage Term | Our Rates | Standard Rates |
|---|---|---|
| Variable Rate | 2.25% | 3.00% |
| 6 Month Closed | 4.75% | 4.95% |
| 1 Year Closed | 2.35% | 2.75% |
| 2 Year Closed | 2.95% | 4.35% |
| 3 Year Closed | 3.25% | 4.75% |
| 4 Year Closed | 3.79% | 5.30% |
| 5 Year Closed | 3.79% | 4.84% |
| 7 Year Closed | 4.99% | 6.60% |
| 10 Year Closed | 5.10% | 6.95% |
| 15 Year Closed | 9.05% | 0.00% |
| 18 Year Closed | 9.05% | 0.00% |
| 25 Year Closed | 9.05% | 0.00% |
Rates are subject to change with very little notice and certain conditions may apply to individual mortgage applications, QAC, E&OE
For the best rates call 1-866-993-8787.
Resources
Where Can You Find Me Now
I have been selected and recommended to the following Profesional Links: www.advisorslounge.ca, www.homesandlandbc.com, www.okanagannrg.ca.
Business Supporting Business — Thank You:
Investments
www.thenewwestside.ca
Insurance
Canyon Insurance covers all your needs, ask for Harry Mason
hmason@canyoninsurance.ca
FCm Travel Solutions
wes.flanagan@fcmtravel.ca
Jocko Toic - CFP FMA CDFA
Investors Group Financial Services
3500 Carrington Road, Suite 102, Westbank BC, V4T 3C1
Ph. 250-869-9636
Email jocko.toic@investorsgroup.com
Success starts with a Sound Plan
Private Home Sellers
www.privatehomesellers.ca
David Beeson
Realtor for the Kelowna Area
Royal Lepage Phone:1-800-747-6954
Email: davidbeeson@royallepage.com
Spring Creek CONSTRUCTION & MILLWORK
Established 2007 by Owner/Operator Florian Hoppen with 25 years in the woodworking industry.
Spring Creek offers quality custom craftsmanship and superior service on:
- Woodwork & Millwork
- Cabinetry Building & Installation
- Woodcraft Doors
- Renovations
- New Building Construction
References for Projects and Workmanship upon Request
Contact: Florian Hoppen
Ph: 403-931-2247 Cell: 403-510-8925
Email: springcreek@platinum.ca
Leslie Marton, C-I-R REALTY
Calgary PH:403477-6996
EMAIL: lmarton@cirrealty.ca
Friends Supporting Friends — Thank You:
Krystal Beisick
www.krystalbeisick.com
For Investments check out — www.renascencedevelopments.com
Ask for Lisa Thomas lisa@renascencedevelopments.com
A Quote to Note:
"Learn how to be happy with what you have while you pursue all that you want."
- JIM ROHN
Also a member of the Okanagan Mortgage Lenders Association
Contact
At Prolink Mortgage Inc., I have over 30 lending financial mortgage institutions in Canada with Steve Faux sourcing the best rates and the best products to suit your needs!
Direct Line — 1.866.993.8787
Email — steve@yourmortgages.ca
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