Archive for Uncategorized
{ May 3, 2009 @ 6:02 am }
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{ Tags: mortgage vancouver, rates, refinance } · { }
Hi Everyone, hope all is well! The sun is shining in BC and Vancouver is heating up (finally). It’s been a while since I’ve had the pleasure of checking in. Though I plan to do keep doing monthly blog posts, I will be putting more emphasis on my videos. The online videos (Mortgage Mike TV:) will be similar to the blog, just without the written component. I feel these are a little more interesting to check out as well as quicker to get info. With that being said I hope to keep you informed through as many forms of media possible.
Social media has taken the world by storm and many folks are now regularly using twitter, facebook, etc. to communicate. I think these tools are great and an excellent way to network and stay in touch. Hopefully one day we can find a way to eliminate email, or at least figure out a way to make sorting through it easier and faster. Our “detached” culture is simply hooked to the internet, and it appears to be a way of life whether we like it or not. Of course the phone is also a handy tool – call me anytime.
OK, back to MORTGAGES. This is arguably the best time in history to get a new mortgage. If you compare buying a house today versus a year ago it is way cheaper now. How much cheaper you ask? Well, factor in a 20% decline in home prices across the lower mainland and 30% lower interest rates and it’s huge. Your overall monthly payment could be 30-50% lower than before, so affordability is much better now. First time buyers can actually enter the market now and have mortgage payments basically the same as rent. So why keep renting? Well, the real estate market could go down a little further, but interest rates will be going up in 1 or 2 years (very likely). The key is to find a place you like and can afford where you plan to live for a while, and you will be fine in the long run.
We in the mortgage business are steady these days thanks to many people choosing to refinance, as well as first time buyers entering the market. If you are in a fixed rate mortgage at the moment there is a good chance it could be worth your while to look at doing an early refinance. As long as the interest/payment savings outweigh the penalty (for breaking term) it will likely be worth your time and energy to set up. I can quickly figure out whether it’s feasible for you based on your unique situation. Email me your current principal balance, interest rate, and penalty you will have to pay and it’s very easy to calculate.
Rate update – as of today 5 year fixed rates are available as low as 3.59%, and a great new 21 month special at 2.90% is available. Lots of great deals out there, lets talk to see what we can do for you.
Until next time.. enjoy the spring!
{ March 9, 2009 @ 5:15 am }
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What is going on in this city??? 
Well, I think we are all going to survive this great recession!
House prices, yes they do continue to drop. 13.5% down this February from last in the lower mainland on average. Interest rates continue to drop as well. Prime is now at 2.5%, the lowest in modern Canadian history – amazing. The BOC is trying to kickstart the economy by lowering interest rates, so stay tuned to see how it works. I don’t think it will hurt that’s for sure. It’s arguable that now is the best time to get a mortgage. Currently 3 and 5 year fixed rates in the vicinity of 4% which is quite excellent. These will likely go under 4% if the trend continues.. which is great for first time buyers. What a low interest rate does is lower your mortgage payment substantially. The difference in payment between 4 and 5% is about 20%. In other words if you are currently paying $2000 a month on your mortgage you may be able to refinance and only pay $1600 per month.
Is it worth refinancing at the moment? If you are currently in a fixed rate mortgage over 5% then it probably is. However, contact your existing lender first to find out what your penalty (payout) is. If the savings outweigh the penalty then it’s a good move and will carry you through the next 5 years and save you $.
Where do we go from here? Well, it’s a buyers market and house and likely will continue to be for another year or two (my prediction). There is no perfect time to buy a condo, but with low rates and lower prices this could be the time. I believe there will be tremendous buying opportunities right through the 2010 olympics.
As always – call me for more information, and yes, use a mortgage broker (not your bank). Have a great day!
Btw – I am now also offering equipment leasing through DLC. Contact me for more info.
{ February 10, 2009 @ 11:50 am }
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{ Uncategorized }
{ Tags: fixed rates, mortgage rates, mortgage rates vancouver, vancouver mortgage } · { }
With all the media hype these days, it’s no wonder that most people look surprised when I tell them I’m a mortgage broker. The average person hears about the credit crunch in the US and assumes we’ve had a major impact here in Canada. In reality, we have lost many sub-prime lenders over the past year and are facing tightening credit now, but for most people not much has changed. In fact, now more than ever, is a great time to “lock” into a mortgage. Getting mortgages funded is not an easy job, and could be compared to being on a battlefield. It takes creativity, hard work and persistence to get the deals done. It’s important to let a mortgage professional handle your mortgage with care.
Rates are at historic lows and money is still readily available for the majority of Canada’s population. House prices are also coming down, and have already dropped 10-20% in Vancouver. It is now a buyers’ market and many first-time home shoppers are taking advantage of more appealing prices, and lower interest costs/payments. Moving into your dream home is a reality worth pursuing. Essentially, if you want to get a great mortgage, your chances are strong. Keep in mind the two biggest things lenders look at is your income (or business) and credit score – if these are solid, then the rest is easy. If your credit is not in great condition (below 600), expect to pay a higher interest rate.
Although bank prime is now at 3% (could drop another .50% soon), it is my opinion that fixed rates are currently the best option. If you want to go variable, expect to pay close to 1% over prime (or 4% ) at this time. Though the variable option looks good now, when the Bank of Canada begins hiking rates, you’ll see your interest rate and monthly payments increase along with it. If you go with a fixed rate, you can take advantage of 3- or 5-year terms, from 3.75-4.49% and be guaranteed this rate for the entire term. Why risk paying more in the long run to save only a few bucks now? The economy will eventually turn around and inflation will kick in – with rates back on the rise.
Yes, it’s true that the economy is having a rough go and 2009 will be a challenging year, but with every downturn comes great opportunities for those with a few dollars to invest. Much like the last 7-year boom, I think we’ll see a lot of money made when the recession turns around after 2010. So my advice for the next couple of years is to buy a home, some Apple shares for good measure, and relax… the best is yet to come!
{ December 13, 2008 @ 4:06 am }
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Some excellent rates at the moment. 5 year fixed 4.99% and bank prime now at 3.50%. The BOC overnight rate is at a 50 year low, not bad!
{ December 9, 2008 @ 2:24 am }
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There are some great deals at the moment on rates. A 5 year fixed at 5.25% is an excellent option as is the prime +.60%. The housing market is now more than ever in the last decade a buyers market with unit sales down 70% last month in Vancouver.
{ December 1, 2008 @ 1:49 pm }
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{ Uncategorized }
{ Tags: mortgage bc, mortgage broker vancoucver, mortgage vancouver, mortgage victoria, vancouver home mortgage } · { }
This article is a must read for anyone skeptical of using a mortgage broker.
http://www.metronews.ca/halifax/live/article/145793
{ November 29, 2008 @ 6:04 am }
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{ Uncategorized }
{ Tags: housing market, Interest Rates, mortgage bc, mortgage rates vancouver, mortgage surrey, mortgage vancouver, mortgage victoria, vancouver, vancouver home mortgage, vancouver mortgage } · { }
A common question I am getting these days relates to interest rates. Clients want to know whether to go with a variable (ie prime +.60% or 4.60%) or a fixed rate (ie 5.55%). Generally speaking (based on history) going with a variable rate will save you money over the long term. You will save about 1% or more per year right away, and you can lock into a fixed rate at anytime. However, this is not for the faint of heart and there is a risk that if the prime rate goes up substantially you could be paying more overall. For those clients wanting to know their rate will not change throughout the term, then I would suggest going with a fixed rate. As a mortgage broker I constantly monitor rates and will provide notifications to my clients when rates start to rise. Under normal market circumstances I usually recommend going with variable rates, but as of today I believe fixed rates are the best choice. However, the choice is ultimately yours to make.
Another popular question these days pertains to the housing market situation in BC. Prices have dropped 10% and more in some areas. Could the market dip further? Yes. Will you save money by waiting until next year to buy? Maybe. Interest rates could go up in 2009. Even if you manage to purchase a discounted house in the future, there is a good chance you will be paying more interest on it. Your total monthly cost (principal + interest) could be the same if not more. It’s very difficult to predict the future, but Vancouver is probably always going to be the most expensive city in Canada. If you’d like me to help you secure a mortgage please give me a call anytime @778.861.3336.
Happy House Hunting!
{ November 23, 2008 @ 1:08 am }
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{ General, Uncategorized }
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The biggest thing on my mind at the moment is what is going to happen to the BC real estate market and North American stock markets. I sure hope the stock markets rebound. Housing could go down for a while before it returns.. Use this time as an opportunity to capitalize and invest. When times are tough people shy away from buying, does this make sense? Luxury homes in Vancouver are now selling for 20% less than 6 months ago. When the stock market crashes it’s actually a sale and the best time to buy (if you believe in the economic fundamentals of our country). Well enough with my rambling for tonight.. I wish I had a crystal ball.:)
{ October 4, 2008 @ 12:01 pm }
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Summer has now come to a close and a lot is changing in the mortgage world. The 100%/40 year mortgages are basically finished now, and rates are on the rise. In the last week most lenders got rid of their discounts on variable rate mortgages. Instead of offering rates of say 4.25%, they are now at prime (4.75%) or even prime plus+. Though I’ve been a longtime believer in variable rate mortgages, most people in the mortgage industry are now favoring fixed rates. It is a great time to lock into a fixed rate mortgage at 5.45% (5 year term), and you won’t have to worry about your adjustable rate (prime) going up. If the bank of canada decides to raise the overnight rate you could see your rate of 4.75% change to 6.00% in a heartbeat. Call me for more info on this.
The Vancouver market has slowed down and prices are down roughly 5% in the last few months. There are some better deals to be had in this buyers market. Have a great day and happy rainy season!
{ September 3, 2008 @ 7:33 am }
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It’s been a while since I’ve been on here, though I plan to be more consistent with my blog in the future!
I joined Smartymortgage Inc. (a Dominion Lending Centres franchise) a few months back and enjoy working out of our downtown Vancouver office location. I have also launched another a website, www.yaletownmortgage.com – check it out!
There has been a lot of changes in the mortgage industry this past year. Many sub prime lenders have stopped doing business in Canada. In October, new rules the government has put forth will affect the type of mortgages available. 40 year/100 percent mortgages (zero down) will be no longer in Canada. The maximum amortization will be 35 years and 95% loan to value (5% down).
The Vancouver market has slowed somewhat and unit sales have decreased. Prices have only moderately been affected at this point. People keep asking me whether now is the time to buy.. the million dollar question. Interest rates are probably on the rise so even if house prices come down marginally the total cost of your mortgage will likely remain the same IMO. The other popular question is whether to go fixed or variable. I am a fan of variable as it’s a great way to save money now and you can lock into a fixed rate at a later date. As of today, I can secure a variable rate of 4.15%, vs. fixed at 5.34.
Please contact me anytime if you’d like to discuss setting up a mortgage – thanks.
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