Watch out for those Neutron Mortgage Loans!

Watch out for those Neutron Mortgage Loans

It's no wonder people in the US are in financial trouble, read this one and you will be amazed - Long-fuse mortgage bomb
ection
Americans who took out `option ARM' home loans will see monthly payments explode in coming years

New York–Joe Ripplinger took out a $184,000 (U.S.) mortgage in 2006 and makes his payments every month.

Now he owes $192,000.

The 66-year-old Minneapolis house painter has a payment-option adjustable-rate mortgage. It allows him to write a cheque for $565 a month even though he owes $1,300.

The difference is added to the mortgage, and when his total debt reaches $212,000, or after five years have passed, he said his monthly payment could jump to about $2,800, which he can't afford.

"We're barely making it right now," Ripplinger said.

The estimated one million homeowners with $500 billion of option ARMs are beyond the help of interest-rate cuts by Federal Reserve Board chair Ben Bernanke.

While subprime borrowers face an average increase of 8 per cent or less when their adjustable-rate mortgages reset, option ARM homeowners may see their monthly payments double after their adjustments kick in.

"We call them neutron loans because they're like a neutron bomb," said Brock Davis, a broker with U.S. Express Mortgage Corp. in Las Vegas. "Three years later the house is still there and the people are gone."

Once option ARM borrowers' loan balances reach a predetermined limit, called a negative amortization cap, usually 110 per cent to 120 per cent of the mortgage amount, their payment rates immediately increase. They also automatically shoot up after five years.

Otherwise, increases typically are capped at 7.5 per cent of a borrower's initial payment per year.

"These could be called long-fuse, exploding ARMs," said Kathleen Keest, former assistant Iowa attorney general and now senior policy counsel at the Center for Responsible Lending in Durham, N.C.

"I've heard people say they are the most complicated product ever offered to consumers. They are the real liar loans."

The loans accounted for 8.9 per cent of the almost $3 trillion in U.S. home loans made in 2006, up from 8.3 per cent in 2005, according to an estimate by industry newsletter Inside Mortgage Finance.

Originations of option ARMs fell 50 per cent during the first nine months of last year, the newsletter says.

"The problem is, you can refinance an option ARM to a 30- year conventional loan at a 5.5 per cent interest rate, and you're still looking at your payment going up 150 per cent," said Andrew Laperriere, managing director of New York-based research firm International Strategy & Investment Group.

"That's pretty ugly."

About $460 billion of adjustable-rate mortgages are scheduled to reset this year, with the next spike in resets coming in 2011, when $420 billion in mortgages will adjust to new interest rates for the first time, according to New York-based analysts at Citigroup Inc.

That's the year that Joe Ripplinger's payment will jump, provided he doesn't reach his negative amortization cap before then.

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A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
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Have you heard of the new 50 Year Mortgage?

You've no doubt seen 30 year and even the 40 year mortgage in the past year or so. But now, a Canadian mortgage and credit company is offering a 50 year amortization mortgage. Yes, you heard it right, 50 years!

The company is called Centum and they say they offer mortgage financing, home equity loans and debt consolidation especially designed for first time buyers and those with good, bad or marginal credit. Their site is labuick .com

It will likely not be too long before the other major lenders follow the lead!

Does this mean that you need to buy your first home at 15 years old to have it paid off by retirement? ;-))

http://www.mississauga4sale.com/bestrate.htm

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Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Interest Rate cut by 3/4 of a Point United States Federal Government

Fed Cuts Key Interest Rate by 3/4 of a Point

WASHINGTON The Federal Reserve reduced short-term interest rates for the sixth time in six months on Tuesday March 18th, capping an extraordinary series of measures it has taken to stabilize financial markets. The cut was smaller than investors had been expecting, though, and exposed some signs of a split among policy makers.

Rescue Tests the Fed's Credibility (March 18, 2008) The central bank lowered its federal funds rate the rate it charges banks for overnight loans by three-quarters of a percentage point, to 2.25 percent, and left the door open to additional rate cuts in the months ahead.

Though it was one of the biggest one-day rate cuts in decades, investors had been betting heavily that the Fed would cut its key rate a full percentage point in response to strong evidence that a recession has begun and to the deepening crisis on Wall Street.

But two members of the Fed's policy-making committee dissented, saying they favoured an even smaller rate cut, and the policy group as a whole expressed new worries about inflation a possible argument against any future cuts।

"Inflation has been elevated, and some indicators of inflation expectations have risen," the Fed said in a statement that accompanied the rate decision. "It will be necessary to continue to monitor developments carefully."

Some saw the cut of three-quarters of a point as a compromise to appease those who wanted less. Others surmised that the Fed may have been reluctant to cut rates further immediately in part because as the rates inch closer to their floor of zero, the Fed leaves itself less room to manoeuvre in case of further financial shocks. From The New York Times

Read about Canadian Interest Rates

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A. Mark Argentino
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Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
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Mortgage, Debt and strategies to receive Tax Benefits

Many of us have been busy shopping, baking, visiting with friends and family and now starting to make some New Years Resolutions as well. One might be to start the New Year off with some strong Financial Planning. Perhaps looking for ways to pay off some debts, contribute to your RRSP's or maybe even taking that long wanted vacation or the home renovations that have been sitting on the back burner.

Ø Is your mortgage Tax Deductible?

Ø When should you consolidate your debt?

Ø What are the Benefits to you?

Ø Would you receive a Tax Benefit?

Make 2008 your best year ever!

Most people have more than one debt. You may have high interest credit cards, loans and mortgages. To pay off one debt you may need to borrow from someone else, creating yet another debt. The solution to this problem is debt consolidation. If you own a home, you can get a debt consolidation, home equity loan. With a debt consolidation loan you will have to consolidate each of your high interest credit cards, as well as your consumer loans, into one inexpensive and affordable monthly payment with low interest.

Tax deduction and home equity loan consolidation

Another possible advantage is that interest you pay on your equity debt consolidation loan may be tax deductible. Normally, if you add your first mortgage to a new debt consolidation loan, and the total does not exceed 100% of the appraised value of your property, the interest you pay will be fully deductible. Your tax consultant can advise you on the matter, and it's always a good idea to check with him or her. A yes to any one of these questions is a red flag. A yes to more than one indicates that you're probably a strong candidate for debt consolidation. Don't let your stress level get any higher.

Ø Have you hit the maximum limits on all your credit cards?

Ø Do you charge more than you can pay off each month?

Ø Are you unable to pay more than the minimum payments?

Ø Do you accept every credit offer you receive?

Ø Are you transferring balances to avoid paying them off?

Ø Are creditors calling you directly to ask about payment?

Ø Are you incurring fees for missed payments?

Ø Are any of your credit accounts in default?

Why should I refinance?

If you bought your home a few years back when annual interest rates were 12 percent, refinancing now can save you a great deal of money over the term of the mortgage. Or you might be able to switch from a 30-year mortgage to a 15-year, so you can pay off your loan in half the time with roughly the same monthly payments.

There are several reasons to refinance your home:
1. Lower the interest rate on your mortgage, reducing your monthly payments, and overall cost;
2. Reduce the term or length of your loan, doing so can save you thousands of dollars in interest;
3. to provide a means of consolidating your debt;

4. Contributing to your RRSP's and take advantage of the tax benefits.
5. To draw on the equity built up in the house to get cash for a major purchase or for children's education;
6. Have an adjustable-rate mortgage (ARM) and want a fixed-rate loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan.

It is better to refinance if you can get an interest rate at least two percentage points lower than what you are currently paying. However, every situation is different. Some lenders are offering reduced fees or no points. Asking yourself a few questions may help you determine if you can save money:

1. How much can I lower my current monthly payment?

2. How much will I pay in refinancing costs?

3. How much will I still owe on the house?

4. How much am I currently paying each month?

5. How much did I initially pay for the house?

There are other considerations, too, such as how long you plan to stay in the house. Most sources say that it takes at least three years to realize fully the savings from a lower interest rate, given the costs of the refinancing. Itemize all the expenses of the refinance and estimate your new monthly payments. Answering these questions can help you to decide if you should refinance.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Current Mortgage Interest Rates

Following yesterday's Bank of Canada rate announcement, many mortgage lenders have lowered their prime lending rate to 5.25%.

Fixed rate mortgages remain stable.

Variable rate clients have benefited from this decrease - today's best variable rate is 4.65%.

With it's low rates, many borrowers are choosing the variable rate mortgage.

A few points to consider:

• Ability to switch to lenders fixed rate mortgage during term (without a penalty);
  
• Switching at 'best rate' vs posted rate;
  
• Mortgage payments - change with prime vs remain stable (make sure you have choice).

Please let me know how I can help you if you want me to put you in touch with lenders that offer these rates!

Mortgage Rate UPDATE
March 5th, 2008

Prime Rate………….5.25%
Variable Rate……….Prime less .60%
1 year closed……….5.20%
3 year closed……….5.85%
5 year closed……….5.69%*
7 year closed……….5.93%*
10 year closed……...6.00%*
25 year closed……...7.00%

Read more about Interest Rates

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• Interest Rates


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Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


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Mortgage Interest Rate Specials

I know some mortgage people that are offering exception mortgage deals now that prime has dropped another .5%

1) 5.64% 5 year rate

CLOSINGS MUST HAPPEN BY MARCH 30th 2008.

Available on BFS and Rental NOT offered on fixed portions within the HELOC NOT offered on Pre-approvals For new purchase offers only

2) Prime rate is now 5.25%

That means qualified deals for ARM, High Ratio Rentals and High Ratio BFS rates are as low as 4.55% (Prime minus 70)

3) City of Toronto's increase to the Land Transfer Tax;

Solutions for Mortgages will take you to a lender who will now cover the cost of the tax for customers obtaining a new fixed rate closed mortgage with a term of 5 or 7 years, subject to the following:

• Maximum payout amount is $15,000 or 1.5% of the mortgage amount, whichever is less


• Applications must be submitted between November 22 2007 and March 11 2008, and must fund by March 21, 2008


• Offer is applicable only to Toronto properties which were affected by the new City of Toronto Land Transfer Tax


• Purchase transactions only
  

Eligible rates and terms as follows:

5 year Fixed Rate Mortgage with a rate discount of 1.01% off the posted rate
7 year Fixed Rate Mortgage with a rate discount of 1.22% off the posted rate
Not available in conjunction with any other offers
Funds are paid directly to the customer
Clients must be approved by this lender

4) Rate special on selected
short term mortgages

6 month term
1 year term
3 year term

5.25%
5.45%
5.39%

Conditions:
- For new business only

- No pre-approvals
- No rental or equity deals

-These special rates do not apply to refinances of existing business

Limited time offer.

Let me know if you are interested and I will put you in contact with these mortgage brokers.

Thanks

Mark

RBC Royal Bank decreases prime rate

RBC Royal Bank decreases prime rate

TORONTO, March 4 /CNW/ - RBC Royal Bank today decreased its prime lending rate by 50 basis points to 5.25 per cent from 5.75 per cent, effective March 5, 2008.

Nice to see the banks are coming on board with this rate reduction!

Others will soon follow.

Enjoy!
Mark

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Prime Rate cut One Half Percent Bank of Canada to 3.5 per cent

Bank of Canada slashes interest rates half a point to 3.5 per cent

From the Canadian Press, OTTAWA The Bank of Canada has slashed its key short-term interest rate by half a percentage point to 3.5 per cent in an attempt to bolster Canada's flagging economy.

And the central bank signalled that further cuts to its overnight rate may be required soon, possibly as early as its next scheduled date of April 22.

The cut was the third in as many months, but the first time the central bank has moved so boldly on interest rates since the aftermath of the September 2001 terror attacks.

Tuesday's action was the first under new Bank of Canada governor Mark Carney, who took over the central bank's top post on Feb. 1 from David Dodge.

In its statement, the bank cited worsening economic conditions in the U.S., which have shown up in weaker Canadian exports.

The bank said the American slump is likely to be deeper and more prolonged than previously forecast, and prospects for the Canadian economy have darkened.

Text of the Bank of Canada statement Tuesday as the central bank cut its key overnight interest rate by half a percentage point to 3.5 per cent:

Information received since the January Monetary Policy Report Update (MPRU) indicates that economic growth in Canada through the four quarters of 2007 was broadly in line with expectations. Domestic demand has remained buoyant, as rising commodity prices and high employment have continued to support income growth. Canada's net exports weakened further in the fourth quarter, reflecting the slowing U.S. economy and the impact of the past appreciation of the Canadian dollar. Overall, the Canadian economy remained above its production capacity at year-end. Core and total CPI inflation at 1.4 per cent and 2.2 per cent, respectively, in January u have also been consistent with the Bank's expectations.

At the same time, there are clear signs that the U.S. economy is likely to experience a deeper and more prolonged slowdown than had been projected in January. This stems from further weakening in the residential housing market, which is adversely affecting other sectors of the U.S. economy and contributing to further tightening in credit conditions. The deterioration in economic and financial conditions in the United States can be expected to have significant spillover effects on the global economy. These developments suggest that important downside risks to Canada's economic outlook that were identified in the MPRU are materializing and, in some respects, intensifying.

The Bank now judges that the balance of risks around its January projection for inflation has clearly shifted to the downside, and, as a result, the Bank is lowering the target for the overnight rate. Further monetary stimulus is likely to be required in the near term to keep aggregate supply and demand in balance and to achieve the two per cent inflation target over the medium term.

http://www.mississauga4sale.com/Rates-Current-Posted-Mortage-Interest-Rate.htm

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Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


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Bank of Canada Slashes Prime Interest Rate 1/2 point!

Canada Cuts Rate a Half Point, Signals More `Stimulus' Needed

March 4 -- The Bank of Canada cut its benchmark interest rate a half point, the first such move since 2001, and signalled it will have to act again to offset a slump in exports to the U.S.

Mark Carney, in his first decision as governor, cut the target rate for overnight loans between commercial banks to 3.5 percent, the lowest since March 2006. Thirteen of 26 economists surveyed by Bloomberg News predicted the move.

``Further monetary stimulus is likely to be required in the near term,'' the central bank said today in a statement from Ottawa. Signs of economic slowdown in Canada are ``materializing and, in some respects, intensifying.''

Tumbling exports to the U.S. will limit 2008 economic growth to a seven-year low of 1.8 percent, the central bank says, and have erased the country's broad trade surplus for the first time since 1999. The bigger rate cut today also helps catch up with moves this year by the U.S. Federal Reserve, and may slow the Canadian dollar's advance that has battered manufacturers.

``There are clear signs that the U.S. economy is likely to experience a deeper and more prolonged slowdown than had been projected,'' which will have ``significant spill over effects on the global economy,'' the Bank of Canada said today.

Canada's decision comes two days before meetings of the Bank of England, and the European Central Bank, where economists predict policy makers will keep rates unchanged.

``With further rate cuts clearly needed to insure against the downside risks from a rapidly softening U.S. economy, and since monetary policy acts with a lag, we see no reason for the Bank of Canada to wait,'' Jacqui Douglas, economics strategist at TD Securities in Toronto, said before the decision.

Fed Moves

The Fed is expected to cut borrowing costs again on March 18. Canada's benchmark is now half a point greater than that of the U.S., narrowing what was the biggest gap since June 2004. That premium has helped keep Canada's currency close to a record high.

The currency rose to a record 90.58 Canadian cents per U.S. dollar on Nov. 7 and has gained 26 percent in three years.

Canada sends about three-quarters of its exports to the U.S., making the two countries the world's biggest trading partners, and the high dollar makes those goods less competitive. The U.S. economic woes have sapped demand for Canadian lumber and automobiles, two of the five biggest exports.

Finance Minister Jim Flaherty said Feb. 15 he's ``worried'' about the economy in Ontario, the country's biggest province and factory hub, the same day a report showed automobile production plunged 25 percent in December -- the most since 1996.

Room for Cuts

The high currency also gives Carney room for a bigger rate cut, by making imports cheaper and holding inflation close to his 2 percent target. Excluding volatile items such as fresh fruit, inflation slowed to 1.4 percent in January, the least since July 2005. Policy makers focus on the so-called core rate as a guide to future trends, and its moderation suggests inflation may slow from January's 2.2 percent pace.

``The balance of risks around'' the Bank of Canada's January projection for inflation ``has clearly shifted to the downside,'' the central bank said today. The bank's January economic forecast predicted core inflation of 1.4 percent in the first quarter.

There are still signs that consumer prices might pick up again. Canada's jobless rate is at a 33-year low, wages are rising at the fastest pace in a decade, and companies are earning record profits.

See current Interest Rates

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Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


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Current mortgage interest rates on the market

Here are today's 'best' rates, let's see if they drop next week after the Bank of Canada meets and sets the new prime rate on March 4th, 2008

Terms	Posted Rates	Discounted Rates
1 YEAR	7.25%	5.20%
2 YEARS	7.30%	5.99%
3 YEARS	7.30%	5.89%
4 YEARS	7.19%	5.89%
5 YEARS	7.29%	5.79%
7 YEARS	7.70%	6.15%
10 YEARS	8.05%	6.25%

Best Interest Rates

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• Interest Rates
• Power of Sale Properties
• Price Trends
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Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Negative consequences of 40 year mortgages - I agree with this post

40 year mortgages did improve affordability for many first time buyers but there are negative consequences with these very long term mortgages
40 year mortgages also increased the amount that move-up buyers could afford. On the other hand, I agree with the article below that 40 year mortgages spell trouble for people who can't handle the huge debt load.

New mortgage products spell trouble

Ms. Vaz-Oxlade's advice: "If you can't afford a downpayment, don't buy."
'When I see this kind of unrealistic optimism ... it makes me scared for people,' says Gail Vaz-Oxlade.
Offering 40-year mortgages and no-money-down options to people who don't know how to budget 'is like taking a child into a candy store and telling them to eat anything they want,' one adviser tells Linda Mondoux.
If it were up to Gail Vaz-Oxlade, host of HGTV's popular Til Debt Do Us Part reality show on ordinary Canadians trying to dig themselves out of financial messes, no-money-down mortgages would be against the law.

And so would 40-year amortizations. And lines of credit wouldn't be handed to first-time homebuyers to finance their closing costs.

While these new mortgage products are being touted by lenders as great opportunities for young buyers to get on the property ladder, Ms. Vaz-Oxlade sees them as "nothing but trouble."

"What I am seeing in the real world is tremendous financial ignorance," she says, her voice booming over the telephone from her home near Cobourg. "They have no concept of the long-term cost of borrowing. They only focus on the payment -- the lowest possible payment, not accelerated payments.

"The problem with 40-year mortgages and no-money down is it doesn't prepare you to be a homeowner," she says. "Any fool can do that (get a high-ratio mortgage). But not everyone can be a homeowner."

Ms. Vaz-Oxlade chides the big banks for joining other lenders in adopting programs that she says have loosened the rules for mortgages and credit, "creating conditions right for default.

"It's almost as if we have rinsed our minds of 1990, when there was a correction in the real estate market," she says. "All markets have a cycle. When I see this kind of unrealistic optimism, that nothing bad will happen, it makes me scared for people."

The author of several books on consumer finances, Ms. Vaz-Oxlade accuses the banks of giving in by using a formula for credit scoring for mortgage purposes that is in conflict with sound lending practices.

The Certified General Accountants Association of Canada agrees that too much choice may be a bad thing.

"While lending institutions afford a beneficial service to society and its constituents, the risk tolerances of those institutions should not be exercised as a substitute for the judgment of individuals who must discern between good and bad credit," it says in an October report titled Where Does the Money Go: The Increasing Reliance on Household Debt in Canada.

The report points out that Canada's household consumer debt reached the $1-trillion mark in 2006 and has been climbing since, a trend Ms. Vaz-Oxlade's show and her website at www.gailvazoxlade.com try to reverse.

But it's not easy. An upcoming episode will feature homeowners whose monthly mortgage payments are financed from a line of credit.

"They're the perfect example of someone who is not ready for home ownership," she says. "Shame on the financial institutions for giving them a mortgage and a line of credit."

Ms. Vaz-Oxlade says offering 40-year mortgages and no-money-down options to people who don't know how to budget is "like taking a child into a candy store and telling them to eat anything they want. We're not educating them about the consequences."

But Mary Ellen Brown, director of home equity financing at the Royal Bank of Canada, defends her bank's decision to offer no-money-down, 40-year mortgages as "a good choice for some clients."

Those products, she says, are the result of a recognition by the financial industry that the cost of homes in Canada is going up, and more people want to own their homes. "It's still more attractive than renting," she says, adding that if things worked the way Ms. Vaz-Oxlade wanted, many people would be "missing an opportunity to build equity and real wealth."

Ms. Brown says the banks have not loosened their credit standards, "because you still need the capacity to repay." The checks and balances at RBC, she says, would deny a mortgage if there was a history of bad credit.

"Just because someone has opted for 40 years doesn't mean they have bad credit," she says, adding that RBC doesn't approve longer amortization mortgages without first discussing all costs -- such as default insurance premium surcharges -- and options -- such as accelerated payments -- with the borrower.

"It is our duty to make sure a client goes into this with their eyes open," she says, pointing out that the bank's online mortgage calculator is one of the few that shows potential borrowers how much interest they would pay over the life of the mortgage.

Ms. Vaz-Oxlade isn't convinced. Her advice: "If you can't afford a down-payment, don't buy."

- - -

Mortgage Options

Amount of mortgage: $200,000

Mortgage term and rate: 5-year at 5.85%

Amortization period: 25 years

Payment schedule: Accelerated weekly

Weekly payment: $315.46

Mortgage balance after 5 years: $171,819.25

Cost over lifetime of mortgage

Total payment: $345,762.93

Total interest: $145,762.93

Amount of mortgage: $200,000

Mortgage term and rate: 5-year at 5.85%

Amortization period: 25 years

Payment schedule: Monthly

Monthly payment: $1,261.84

Mortgage balance after 5 years: $179,289.98

Cost over lifetime of mortgage

Total payment: $378,548.84

Total interest: $178,548.84

Amount of mortgage: $200,000

Mortgage term and rate: 5-year at 5.85%

Amortization period: 40 years

Payment schedule: Accelerated weekly

Weekly payment: $267.48

Mortgage balance after 5 years: $186,270.32

Cost over lifetime of mortgage

Total payment: $426,831.36

Total interest: $226,831.36

Amount of mortgage: $200,000

Mortgage term and rate: 5-year at 5.85%

Amortization period: 40 years

Payment schedule: Monthly

Weekly payment: $1,069.91

Mortgage balance after 5 years: $192,605.48

Cost over lifetime of mortgage

Total payment: $513,547.74

Total interest: $313,547.
http://www.mississauga4sale.com/mortgage-qualifier-payment.htm


http://www.mississauga4sale.com/rates.htm

Read my recommendations on becoming mortgage free sooner

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Current Mortgage Interest Rates

Here are the latest rates from one lender I deal with:

Prime "A" residential rates

Rates effective 26^th February, 2008

TERM	Discount RATES	POSTED RATE
6 months	7.00	7.05
1 year	5.95	7.30
2 years	6.05	7.40
3 years	6.05	7.40
4 years	6.05	7.35
5 years	5.79	7.39
7 years	6.20	7.70
10 years	6.25	8.49
5 year VRM	5.25	Prime: 5.75%

Rates subject to approved credit. Rate holds 90-150 days.

Many Mortage companies offer:

• 100% financing
• Ex-bankrupts and bruised credit applicants welcome
• Cash backs up to 4%
• New immigrant programs (clients with 9 SINs too)
• Pre-approvals and approvals within 4 to 6 hours
• 1^st ,2^nd mortgages and secured lines of credit regardless of income or credit history.
• BFS programs
• Equity programs and debt consolidation
• Commercial and construction financing

read more about Interest Rates

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Will Canadian Mortgage Interest Rates ease next week when the BofC meets?

Will the Mortgage rates ease when the Bank of Canada meets in early March?

Borrowing costs declined the last Friday in January as major Canadian lenders and banks cut their mortgage interest rates on several longer-term mortgages and loans.

Royal Bank, TD Canada Trust and Laurentian Bank all announced cuts ranging from 0.05 to 0.1 of a percentage point.

With the change, a posted five-year closed mortgage rate now ranges from 7.39 to 7.4 per cent.

The banks' posted 10-year mortgage rate was 8.05 per cent, down 0.1 of a percentage point.

Rates on one-year closed mortgages remained unchanged in a range from 7.25 to 7.35 per cent.

On the preceding Tuesday, the Bank of Canada cut its key overnight rate the target rate is sets for overnight loans between major banks by 0.25 of a percentage point, and signalled that more cuts will be likely to keep the Canadian economy on track.

The cut by the central bank led major banks to cut their lending costs on variable-rates mortgages.

Refreshing news, since it took two Bank of Canada reductions to get the banks to reduce their fixed rate mortgages, in case you weren't watching!

Let's see if the next meeting the Bank of Canada will reduce rates or not, only time will tell

Today's current mortgage rates

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Mortgage Interest Rates 2008 Forecast and last year summary

Mortgage Interest Rates 2008 Forecast and last year summary

Mortgage rates increased by about 100 basis points between the start and the end of 2007. The sub-prime mortgage loan crisis in the U.S. has continued to rock financial markets resulting in liquidity issues which have increased the costs of funding mortgages.

Equity and financial markets have experienced additional upheaval as many analysts and investors speculate on the possibility of the U.S. slipping into a recession. The ensuing flight to quality in financial markets has resulted in lower yields on government bonds, but has not had a large impact on posted mortgage rates.

The potential drag on Canadian GDP growth due to a potential U.S. economic slowdown, coupled with the tightening on Canadian credit conditions, and the high value of the Canadian dollar will cause minor fluctuations in mortgage rates through 2008.

Mortgage rates are expected to remain within 25-75 basis points of their current levels in 2008 and then stabilize throughout 2009.

The one year posted mortgage rate is forecast to be in the 6.75-7.50 per cent range, while three and five year posted mortgage rates are forecast to be in the 7.00-7.75 per cent range in 2008.
Source: CMHC 2008 Canadian Housing Observer First Quarter

Friendly Ponds
Building a network is not just about business. New acquaintances can often become friends for life, even though you initially connected because of a business association. The best way to build a network of depth, breadth and reach comes from Dale Carnegie: "You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you." So, how many new friends did you make this year?
Source: Darcy Rezac's Tip of the Week at workthepond.com

Did you know that in 2005, 1.1 million households in Canada owned second homes, vacation homes or cottages? This represents a growth of approximately 200,000 households since 1999. Baby boomers were responsible for much of the increase; households with maintainers aged 45 to 64 accounted for almost three quarters of the total increase in households owning secondary homes. Source: 2008 Canadian Housing Observer

Knowing your Markets
One of the more difficult challenges in growing your business is knowing where your next sale is coming from. That is why it is very important to have an in-depth understanding of the resale market in which you work. The following summary table provides you with a quick overview of resale activity in Canada's largest markets
(you can also visit http://www.cmhc.ca/en/inpr/homain/index.cfm for more information):

MLS® Statistics for Select Canadian Markets
	Sales			Average Price
	2006	2007	up/dwn	2006	2007	up/dwn
Calgary	33,027	32,176	-2.6%	$348,004	$413,139	18.7%
Edmonton	21,984	20,427	-7.1%	$251,169	$337,428	34.3%
Vancouver	36,479	38,978	6.9%	$509,802	$568,588	11.5%
Ottawa-Crltn	14,003	14,739	5.3%	$256,447	$272,395	6.2%
Toronto	84,842	95,164	12.2%	$350,616	$376,873	7.5%
Montréal	50,106	56,151	12.1%	$216,100	$230,147	6.5%
Halifax	6,462	7,261	12.4%	$202,565	$215,055	6.2%
Source: Canadian Real Estate Association (CREA), CMHC

Current Mortgage Interest Rates

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Historical Central Bank Rate for US and Canada Watch Predictions

Historical Central Bank Rate for US and Canada Watch Predictions

These are the predictions of the US versus Canadian Bank Rates over the next 12 months and historical bank rates graphed over the past 8 years.

• Weaker U.S. growth and the strong Canadian
dollar are posing downside risk to Canada's economy
and have prompted the Bank to cut interest
rates by a cumulative 50 basis points in December-
January.

• Another 100 basis points in rate cuts are expected
by mid-year to offset the downside risks and
help the economy weather the market turmoil.
Bank of Canada

Read more about:

• Interest Rates



• Power of Sale Properties



• Price Trends



• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?



• On-Line Real Estate Newsletter sign up



• See seasonal housing patterns

Here are some very innovative mortgage products for those in need

This is just a reminder of some the innovative mortgage products that are available for my clients.

- up to 100% financing... even on rental properties!
- up to 95% financing for self-employed individuals on STATED INCOME!
- money for renovations CAN be included in mortgage
- amortization of up to 40 years

Not to mention the absolute BEST customer service in the business!

*ask me about how I can offer you a FREE one-year warranty on their new home!

I have mortgage broker contacts that will also find the lowest available rate for you if you are in any of the following situations:

-weak credit
-self-employed
-new immigrant
-power of sale
-past bankruptcies
-non-qualifying income
-debt consolidation
-refinancing
-renovations


These mortgage people that I deal with would love the opportunity to show you what they can do.

read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Mortgage Rates and Factors to calculate payments

Mortgage Rates and Factors to calculate payments

When calculating mortgage payments, there are quick factors that can be used for a particular interest rate. For example, if the interest rate is 5.95% then the factor is 6.37 per $1,000 in mortgage, thus if you want to know the payments on a $120,000 mortgage at 5.95% then you would multiply $120,000 x 6.37/1,000 = $764.40

The table below shows current rates and their factors.

Discounted Rate (OAC)/ Cost Factor per Thousand

1 Year 6.00% / $6.40

2 Year 6.10% / $6.46

3 Year 6.05% / $6.43

4 Year 5.95% / $6.37

5 Year 5.79% / $6.27

7 Year 6.20% / $6.51

10 Year 6.30% / $6.58

5 Year Variable 5.15% / $5.90

See my mortgage calculators at this page: http://www.mississauga4sale.com/mortgage-payment-calculator.htm

read more about Mortgage Interest Rates

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Mortgage Interest Rate Update after Bank of Canada Prime Rate Drop of .25%

Mortgage Interest Rate Update after Bank of Canada Prime Rate Drop of .25%

Financial markets and interest rates dominated the news yesterday - as you are aware, the Bank of Canada lowered their lending rates by .25% and most banks have lowered the Prime lending rate to 5.75% (from 6%).

Following yesterday's announcement, fixed rate mortgages remain unchanged. Today's best pricing on a variable rate mortgage is 5.15% (Prime less .60%).

The next Bank of Canada rate announcement is scheduled for March 4th and there were strong suggestions yesterday that addiitional rate decreases are likely.

Mortgage Interest Rate Update
January 25th, 2008

Prime Rate .5.75%
Variable Rate Prime less .60%
1 year closed .5.65%
3 year closed .6.00%
5 year closed .5.99%
7 year closed .6.03%*
10 year closed ...6.10%*
25 year closed ...7.10%

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
  
• On-Line Real Estate Newsletter sign up
  
• See seasonal housing patterns

TD/Canada Trust report: Bank of Canads has further rate cuts to come

TD/Canada Trust feels that the Bank of Canads has further rate cuts to come

January 22, 2008

Bank of Canada cuts by 25 basis points

Bank to cut 50bps on March 4th and 25bps on April 22nd

The Bank of Canada cut the overnight rate this morning by a quarter-point to 4.00%. This was broadly in line with market expectations; however speculation was building in the days leading up the meeting that the Bank might be more aggressive given that financial market confidence had been severely undermined by the prospects of a U.S. recession and the possibility of some contagion to the global economy. Speculation of a more aggressive Bank of Canada decision climaxed when the Federal Reserve caught financial markets completely off guard this morning with an inter-meeting cut of 75 basis points. Nevertheless, the Bank stuck to their guns with a more measured approach, reflecting their view that domestic demand on this side of the border is expected to remain strong. However, the Bank made it quite clear in this morning's communication that they are prepared to deliver more rate cuts down the road when they stated that "further monetary stimulus is likely to be required in the near term to keep aggregate supply and demand in balance and to return inflation to target over the medium term".

We believe the next move on March 4th will be a more aggressive 50 basis point cut. That rate decision will probably not be the result of slumping domestic demand. So far, the domestic side of the Canadian economy appears well grounded. In today's communiqué, the Bank noted that despite tighter credit conditions, strength in domestic demand is expected to remain supported by continued income growth associated with the increase in commodity prices since October, which has led to further gains in our terms of trade." It is also important to remember that unlike their American counterparts, Canadians are not getting hit on both ends of their asset portfolios. Home prices remain on the upswing in most major urban centers, and there is little concern that the Canadian housing market will start to mirror the slump in the U.S. In fact, we believe national home prices will rise at a rate of 5-7% in 2008, compared to a U.S. market that will likely absorb losses of around 5% or more.

However, we believe that by the next meeting, data on the U.S. economy will provide a smoking gun, showing clear signs of a sharp economic slowdown. Given that inflationary pressures remain well in hand, a 50 basis point cut would provide much-needed insurance against the degree to which a U.S. economic downturn would lap onto Canadian shores. Certainly, inflation will not provide a barrier to a more aggressive Bank of Canada. The central bank has indicated that increased competitive pressures in the retail sector and the one percentage point GST cut at the start of the year will cause both core and total CPI inflation to fall below 1.5% by the middle of this year before returning to their 2% target by the end of 2009.

Following the March 4th meeting, there is the potential for another 25 basis point cut. However, given the degree of economic uncertainty on both sides of the border, the extent of additional easing will be highly dependent on how developments in the U.S. unfold and whether financial market confidence remains in question.

Some of the guessing on the Bank's views will be answered on Thursday when they release the update to the Monetary Policy Report (10:30ET). This report will lay out the Bank's downgraded views on Canadian and American economic growth alongside a more detailed assessment of the current economic and financial environment.

Read more about Interest Rates

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Bank of Canada Announces .25% rate cut, US Feds slash rates by 3/4%

The Bank of Canada Cuts the Federal
Prime Lending Interest Rates by 1/4 %

The Bank of Canada could have cut more, but decided to go with a quarter-point off its own key rate, but it signalled more cuts to come as U.S. recession worries spiral.

In it's regularly scheduled announcement, the central bank of Canada lowered its overnight lending rate to 4 percent from 4.25 percent.

This was the Bank of Canada's second straight quarter-point cut as it seeks to protect the Canadian economy and infrastructure from the very severe slowdown or even a possible recession that faces the United States.

The move came shortly after the US Federal Reserve slashed its federal funds interest rate by 75 basis points to low 3.5 percent.

This cut by the US disappointed a number of market players who are calling for a bolder rate cut by Canada to match the Fed.

"The Bank of Canada is clearly stubborn, not wanting to cut by more than 25 basis points and I think the market is quite disappointed," said Eric Lascelles, chief economics and rates strategist at TD Securities.

Ted Carmichael, chief economist at JP Morgan Canada, said the bank "did what was expected a week ago and hasn't reacted whatsoever to developments in financial markets in the past week."

The Bank of Canada, which prepared its rate announcement on Monday, opted not to alter its decision at the last minute in reaction to the Fed move.

While warning that Canada's exports will be hit by the U.S. slowdown, the bank emphasized that high commodity prices will continue to help keep Canada's economy buoyant.

"Despite tighter credit conditions, domestic demand is projected to remain strong," the bank said in its statement.

We should see reductions in mortgage interest rates in the next few days!


Read more about Interest Rates

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Mortgage Calculators - help with your payments and income qualification

Online Mortgage Calculators This edition of my blog writings has the latest and best rates for Canadian mortgages. At mortgages, we work on your behalf to find the mortgage that suits your needs. Best of all - our service is "free" for the asking It's the selected lender that gets YOU the best rate. *(O.A.C., E.&O.E.)

• Examples of Current Mortage Interest Rates • Explore Mortgage Scenarios with Helpful Calculators on dominionlending.ca

Terms Posted Rates Discounted Rates 1 YEAR 7.40% 5.65% 2 YEARS 7.55% 6.05% 3 YEARS 7.55% 5.90% 4 YEARS 7.55% 6.04% 5 YEARS 7.54% 5.90% 7 YEARS 7.85% 6.25% 10 YEARS 8.15% 6.30% Rates are subject to change without notice. *OAC E&OE Prime Rate is 6.00%.

Variable rate mortgages from as low as Prime minus 0.60%. Rates are subject to change without notice. Fixed mortgage rates shown in table above and quoted variable mortgage rates are available nationally to qualified individuals. Lower rates may be available to those with higher credit scores or higher net worth – check with your mortage Expert for full details. *O.A.C., E.& O.E. Explore Mortgage Scenarios with Helpful Calculators on mortgages When you're starting to think about what mortgage approach would be beneficial, my online mortgage calculators can help uncover some possible strategies. The Mississauga4Sale website at mortgages features a full line-up of mortgage tools which allow borrowers like you explore mortgage scenarios before speaking to a mortgage expert. If you're planning on buying a home, you can calculate: • the mortgage amount for which you can comfortably qualify, • your mortgage payments along with an amortization schedule to discover what you would owe in five years, • savings realized by making prepayments on your mortgage. If you currently have a mortgage, you can calculate: • how large a home equity line of credit you may be eligible for, • how much interest you could save by refinancing your mortgage, • how to accelerate paying off your mortgage debt. By visiting mortgages and clicking on "Calculators" on the main page, you can access a range of easy-to-use calculators that will provide you with ample insight into all aspects of mortgage financing.

I wish you all the best.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

US Sub-Prime Meltdown what's it all about?

Is it possible that the meltdown occurring in the US lending market/real estate market could spill over into Canada?

Many Canadians are confused about what is happening in the US and if this sub-prime meltdown could happen in Canada. In order to explain what is happening in the US, CREA (The Canadian Real Estate Association) has prepared a nice brochure called "Credit Primer" and it answers some frequently asked questions.

What is a sub-prime mortgage?
It's a mortgage given to a home buyer with less than perfect credit, or a home buyer who lacks the paperwork to prove an income that can support the mortgage payments. While these mortgages may not seem like a good idea to begin with, lenders in the United States with liquid assets, or investment money were making loans to almost anyone who asked, and charging a little more interest for these "riskier" loans. The assumption was that constantly rising house prices in the U.S. would compensate for any lending mistakes. The companies doing this included specialty finance firms such as American Home Mortgage (which filed for bankruptcy in August 2007) as well as big well-known banks such as HSBC PLC.

How did this U.S. lending crisis start?
When U.S. housing prices started to slide and U.S. interest rates began to rise, many mortgage borrowers ended up in trouble and defaulted. Mortgage lenders, in turn, started to run into troubled waters as far as their profit statements were concerned, and a number have gone bankrupt or closed. Many of the companies making the sub-prime loans were also not holding onto the loans, but instead, sold them to other companies such as hedge funds and pension funds who in turn were looking for higher profits. Often, the loans were packaged together (think of a mutual fund holding thousands of individual loans) and sold to investors.

What is the commercial lending paper referred to by the media as part of the crisis?
Commercial paper is short-term debt issued by companies, usually coming due in under a year and often in as little as a month. The buyers of these "papers" tend to be institutional investors, including moneymarket mutual funds, or low-returning funds where investors invest in the belief that the money is safe. As a result, only highly rated companies with strong balance sheets can generally issue commercial paper, limiting the size of the market. But because of the demand of the growing fund industry for more commercial paper, financial companies such as American Home Mortgage and National Bank of Canada set up trusts that issue commercial paper backed by assets such as car loans, mortgages and credit-card receivables. This asset-backed commercial paper alone is estimated to be worth $120 billion. About two-thirds of that paper is sold by trusts run by banks, and that segment of the market is holding up. About another third, or $40-billion, is issued by trusts created by non-bank financial companies such as American Home Mortgage, which no one will now buy. Suddenly money-market mutual funds are questioning investing in commercial paper that is backed by assets such as mortgages when the housing market is slowing, and prices dropping. As a result, the trusts can't find buyers for their paper, leaving them short of cash. They are turning to banks that had agreed to provide loans in a situation where the market flounders, but some of the banks are now balking. So far it's only a segment of the market that's in trouble, and not every money market fund holds paper issued by the troubled trusts.

How is all this affecting the U.S. housing market now?
Consumers in the United States are finding mortgages have become more expensive and tougher to get, and that has had an impact on housing sales. The number of sub-prime mortgage lending has all but disappeared, so that has eliminated a level or layer of consumer who was previously active in the real estate market. In essence, tougher credit terms are slowing purchases and that's slowing the economy and hurting the stocks of companies involved in lending, or in housing. That includes home renovation, builders, and furniture retailers – the impact reaches into various aspects of the economy.

The bottom line:
Unlike the U.S., the Canadian housing market has not been artificially driven by bad lending practices. Our long-term fundamentals are solid. Canada has a growing population. Our energy and commodities are in high demand, and job creation is strong. Consumer confidence remains high. However, there may be an impact on the overall Canadian economy, which may affect the Canadian housing market. For example, the drop in housing starts in the U.S. will mean lower demand for Canadian softwood lumber products.

This article is from CREA. The MLS® sales forecast published quarterly by The Canadian Real Estate Association says that with these economic factors taken into consideration, 2007 will represent a record or near-record year for the sale of re-sale housing in Canada, but the pace of sales will slow in 2008. The detailed MLS® forecast is available on the http://www.crea.ca/ web site.

Read more about the US Sub-Prime Meltdown Crisis

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


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Predictions For 2008 Interest Rates in Canada and US

Here are some predictions on Mortgage Interest Rates for 2008 from RBC

More rate cuts coming from the Fed and Bank of Canada

The ongoing turbulence in financial markets is affecting the outlook for U.S. and Canadian economic growth. U.S. real GDP growth is expected to slow to a pace of 1% to 1.5% over the next three quarters, while Canada's economy gears down to grow at less than a 2% pace, much slower than the 3.4% average rate in the first three quarters of the year.

This has led us to revise our interest rate forecasts downward. We now expect the U.S. Federal Reserve to lower the Fed funds rate by a further 75 basis points to 3.75% over the next three meetings. This is a change from the 25 basis points of easing in our previous forecast.

The combination of slower U.S. growth, volatility in global financial markets and moderating inflation rates saw the Bank cut the overnight rate by 25 basis points in December, and we expect another 25 basis-point rate cut in January. A month ago, we expected the Bank to cut the overnight rate by only 25 basis points.

Our expectation that the trade drag will continue to be substantial in coming quarters and that domestic demand will slow as the tightening in credit conditions takes a bite out of household and business spending means that the Bank will edge the policy rate lower in early 2008 as the economy shifts into a lower gear.

U.S. third-quarter GDP growth was revised up to a 4.9% annual rate from an already-robust 3.9%, implying that the economy had solid momentum as the tightening in credit conditions hit.

The deepening in credit market tightening and persistent financial market volatility mean that households and businesses are likely to remain nervous and risk-averse heading into 2008. We expect that the U.S. economy will eke out a growth rate of 1.5% in the first half of next year.

In this environment, the Fed will likely put inflation concerns on the back burner and focus on mitigating the downside risks to the economy. The Fed will likely lower the funds rate by a further 75 basis points; this, combined with a government-led program to limit future mortgage defaults should be enough to stave off a recession and support stronger growth in the second half of 2008.

Read more about Current Mortage Interest Rates

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
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City of Toronto's increase to the Land Transfer Tax

City of Toronto's increase to the Land Transfer Tax:

Solutions for Mortgages will take you to a lender who will now cover the cost of the tax for customers obtaining a new fixed rate closed mortgage with a term of 5 or 7 years, subject to the following:

1. Maximum payout amount is $15,000 or 1.5% of the mortgage amount, whichever is less

2. Applications must be submitted between November 22 2007 and March 11 2008, and must fund by March 21, 2008

3. Offer is applicable only to Toronto properties which were affected by the new City of Toronto Land Transfer Tax

4. Purchase transactions only

Eligible rates and terms as follows:

1. 5 year Fixed Rate Mortgage with a rate discount of 1.01% off the posted rate

2. 7 year Fixed Rate Mortgage with a rate discount of 1.22% off the posted rate

3. Not available in conjunction with any other offers

4. Funds are paid directly to the customer

5. Clients must be approved by this lender and close only with Solutions for Mortgages Inc.

6. Real Estate agents get $200.00 referral fee.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
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Current Mortgage Interest Rates to start the 2008 Year

Below are the current mortgage interest rates in the GTA

TERM	POSTED	OUR RATES*
6 Month	7.05%	6.5%
1 Year	7.4%	5.74%
2 Year	7.55%	5.99%
3 Year	7.55%	5.92%
4 Year	7.55%	5.95%
5 Year	7.59%	5.77%
7 Year	7.85%	6.25%
10 Year	8.15%	6.3%
Variable Rate		5.5%
Prime Rate		6%

*












Rates may vary provincially and are subject to change without notice.
Rates Last Updated: Thursday, January 03, 2008

See today's current Mortgage Interest Rates

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
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2008 Predictions - How close were the 2007 Real Estate Predictions versus actual and my Real Estate Predictions for 2008

2008 Predictions for real estate, interest rates and the GTA economy.

Blogging is supposed to be personal writings that compel you to continue reading the story. All too often my blog has contained plenty of facts and information and been short on my personal views, observations and opinions. Part of this is due to time constraints, part due to the fact that I am a logical engineer thinker and mostly because I am not much of a creative writer. So here goes my shot at wowing you with words of wisdom and predictions for 2008.

One of the interesting things I've noticed is that as I approach 50 I feel I have a right to express my opinions more freely due to my earned right of experience. I teach a course to other 'newer' agents about the internet and the importance of having a presence on the web. Certainly I've tried to maintain a high profile on the web by uploading over 1700 pages on my site to date. That does not include my 353 blog posts to date. I digress.

After 20 years in the real estate business and having gone through the dark recession years for real estate from March 1989 to 1994 you can understand if I'm a little gun shy when I look at the current market. We've now experienced about 12 years of unprecedented growth in the real estate market. If you don't believe me, check out this graph. Old school business thinking was that economics went in 7 year cycles. Clearly this is NOT the case in the GTA real estate marketplace any longer. Long live Garth Turner. He was always an inspiration to me, good or bad, he would hang his thoughts on the line at any time. I miss his articles and predictions.

We've experienced year over year increases for 12 years in a row with no end in sight. I wrote this time last year and predicted a 4-6% increase in prices for 2007 Was I ever wrong! It seems that our prices will increase over 11% this year! Last year at this time I was worried that maybe our market was stalling a little due to increasing interest rates and slowing sales. Again I was a little too conservative.

So here we sit in Canada with low inflation, low unemployment, low interest rates and a strong economy. The US is faltering due to their sub-prime lending crisis and looks like it will last another 8-18 months, at least. November 2008 is a US election and in all US election years in the past 20 years our market has slowed in the 3 to 4 months preceding a US election. Canadian dollar all time highs. So with all these upcoming uncertainties you would think that I would predict lower increases or a softening of our marketplace. Nope. I think our market will continue to hum along due to low vacancy and rates and more buyers than sellers and continuing lack of land for new development.

For 2007 I am happy to report that I was wrong. I predicted an increase in the GTA average price of about 3-4% and the actual increase was about 11% Wow, was I ever wrong on that number, and many people are quite thrilled about that!

This is what I predicted that would happen last year this time for 2007

• I believe that we will see a steady and 'normal' market in 2007. We will not see the huge price increases that we saw in 2004 and 2005. Prices should increase about 3-4%, a little better than inflation for the year. As always, if you are thinking of selling, February or March may be the best months in 2007.
• This is what I predicted in December of 2005 for the real estate market in 2006. I was just a little lucky!
  It is interesting that many of the experts are predicting prices to rise only slightly for 2006, but nearly as not as much as they did in 2005. I would agree with this line of thinking. The last 4 months of 2005 showed signs of a more "normal" market. The market so far in 2006, up to the end of February has been normal, but nowhere near the sales volume or price increases that were experienced in early spring of 2005.
• As long as rates stay about where they are we should see another year with a healthy real estate market for 2006 with modest price increases.
• And sure enough, it appears that 2006 price increases will be about 5% compared to the nearly 10% we saw in 2005. The real estate boom in Toronto and the GTA is over, for the time being that is! We will have another real estate boom in Toronto, it's only a matter of time.

Read the entire post here:
http://www.mississauga4sale.com/newsletter/Toronto-GTA-Real-Estate-Market-Predictions-2007.htm


Mark's Crystal Ball for 2008

This is what I predict for 2008 in real estate, interest rates and more!



Mark's Predictions for 2008

• I see that our marketplace in the GTA will see price increases just above inflation, in the range of 4-6%


• I believe that mortgage interest rates will come down in the beginning of the year and stay lower compared to today's rates and not increase again until just before the US election in the fall


• Rental vacancy rates will decrease, thus rental rates will increase about 7-10% or more this year. A 'typical' 10 year old 3 bedroom townhome in Erin Mills currently rents for about $1400 to $1550 per month and this will
  increase by at least $100 per month by this time in 2008 This will only continue to make real estate investment properties more desirable and lucrative, it's time to buy another property if you can afford it!


• The condo market will remain a strong part of our marketplace, due to affordability and lifestyle choices


• I believe that the US will be just begin to see the light at the end of the tunnel by the end of 2008, their sub-prime mortgage crisis will have peaked and they will be on the road to recovery


• A barrel of oil will have reached $120 per barrel sometime in 2008, mostly due to an international crisis and absurd speculation fueled by the pundits and the press


• Along a similar vein to the last prediction, gasoline prices will peak at $1.20 per litre sometime in 2008 but will be $1.00 by year end.


• Gold will break $900 (and it does not matter whether it's US$ or CDN$ much anymore!) sometime in 2008 but settle to $735 by end of 2008


• If the experts are now stating that 82% of all buyers begin their real estate search on the internet, I believe that it will be 90% by the end of 2008


• Watch out for following the emotions of the marketplace and stick to your long range goals


• I believe that Mississauga will continue to be one of the top cities in Canada and the world to live in and that people will continue to choose Mississauga as one of their top choices of places to live in the GTA Read about the psychology of ownership. Real estate will always be an excellent investment especially if you get a firm hold on your finances and will continue to be the best long term investments in your future and your children's future that you can make!

Read more 2008 predictions and information at my site.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
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Today's Current Posted and Discounted Mortgage Interest Rates in Ontario

Today's Current Posted and Discounted Mortgage Interest Rates in Ontario

read more about Mortage Interest Rates

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
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Current Mortgage Interest Rates for Canada

Current Mortgage Interest Rates for Canada

Below are spot rates from First Line Mortgages

***Prime rate is currently 6.00%

***First Line Mortgages is offering a rate of 5.90% for a fixed term with a special renewal date of Nov.2012 in order to coincide the American Presidential election.

Historically, Canada's fixed rates drop around the election time and this affords clients the possibility of renewing at a time when rates will be low.

5 Year Variable	5. 40 % (. 60 % below prime for the entire term)
5 Year Fully Open Variable	. 75 % below prime
3 Year Closed	5. 70%
5 year Closed	5. 83 %
7 Year Closed	5. 88 %
10 Year Closed	5. 95 %

Example purchase at $450,000

Purchase price	$450000	$450000	$450000	$450000
Down payment	$22500	$45000	$67500	$112500
Payments per week	$465.27	$440.78	$416.29	$367.32
Household income required	$83400	$79500	$75500	$67500

See current Mortgage Interest nterest Rates,

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
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RBC Economics Daily - Bank of Canada rate announcement - December 4, 2007

Bank of Canada cuts policy rate by 25 basis points

The Bank of Canada cut the overnight rate by 25 basis points to 4.25% highlighting the growing downside risks to the inflation outlook due to the global financial market volatility. The Bank said that both CPI inflation and core inflation in October came in below their forecasts and that they now expect inflation to be lower than their October projection for the next several months.

Highlights

• Bank of Canada cut overnight rate to 4.25%
  
• Bank flags downside risks and highlights that inflation rates below their expectation
  

The Bank cited increased risks to the outlook for Canadian exports on the prospect of slower US economy (due to the housing market) and cited a tightening in credit conditions globally as increasing the downside risks to their inflation outlook. The Bank highlighted that the currency is trading closer to the 98 US cents assumed in their October forecast having weakened from its highest level.

Pressure in financial markets has led to a further tightening in credit conditions, the Bank said. However, strong domestic demand kept the economy operating above its production potential in the third quarter producing residual upside risks to the inflation projection.

Today's press release indicates that policymakers are increasingly nervous about the impact of the global financial market turmoil on the outlook for growth and inflation and sets up for additional easing should these conditions persist in 2008. Our view that Canada's economy, like its US counterpart, is headed for a period of slower growth means that it is likely that the Bank will cut the policy rate again early next year.

Like the BOC, RBC expects that the aggressive price cutting by Canadian retailers will keep downward pressure on Canada's core inflation rate allowing the Bank to pursue an easier policy stance as the economy navigates through this period of financial market turmoil. To be sure, the strong increase in domestic demand in the third quarter will keep the Bank wary about the risk that household spending will grow rapidly exerting upward pressure on prices related to housing.

However the downside risks emanating from the financial market uncertainty, commensurate tightening in credit conditions and weakening US growth outlook seals the case for an additional rate cut in early 2008.

See the current mortgage interest rates

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Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
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How to find the right mortgage

Find the right mortgage

Photo Courtesy of metrocreativegraphics.com

(NC)-Financing a house is probably one of the largest debts you will incur in your lifetime. Here are some tips to help you to make a sound decision when you go mortgage shopping, courtesy of the Institute of Chartered Accountants of Ontario:

Where to start

"Check your own financial institution," advises Chartered Accountant John Durland, Tax Partner with Collins Barrow, Region of Waterloo. "Your banker knows your financial situation and credit rating. Do your homework - banks have a wealth of information on their websites. Or, a licenced mortgage broker will assess your needs and find you the best deal."

"Don't overlook the unconventional sources," says Toronto Chartered Accountant David Trahair, author of Smoke and Mirrors: Financial Myths That Will Ruin Your Retirement Dreams. "These include companies like ING Direct, Manulife Bank, President's Choice Financial and Canadian Tire Bank. A reliable source to easily compare rates is Fiscal Agents Financial Service Group (www.fiscalagents.com)."

Different types of mortgages

Basic mortgages include fixed rate and variable rate. Trahair explains that fixed rate mortgages can be open, which means they can be paid off any time, locked in for a longer term, or changed to a different type of mortgage.

Convertible mortgages can be locked in for a longer term or changed to a different type of mortgage, while closed mortgages have a fixed interest rate for the term of the mortgage - usually six months to 10 years.

Variable rate mortgages have interest rates that change with fluctuations in the money market and can be open, convertible, protected (the rate is capped for the term of the mortgage), or high ratio (allowing a down payment as low as 5 per cent and requiring insurance).

Mortgages and financial planning

Make your mortgage decision part of a financial plan. Paying off your mortgage and saving for retirement are important components of any good financial plan.

"Determine your goals," says Durland. "When do you want to be debt free? A longer amortization period may make sense as long as you are also building up other savings such as an RRSP.

Banks often recommend bi-monthly payments to save interest. Look at your overall cash flow first - paying down your mortgage faster may not make sense if this means you cannot pay off other debts, including credit cards."

Should I shop for the best interest rate?

"Yes!" Trahair says. A review of Fiscal Agents Financial Service Group's mortgage rates (available on their website and every Sunday in the Toronto Star) showed five-year closed mortgage rates ranging from 5.69 per cent to 7.25 per cent. "Choosing the lower rate on a $200,000 mortgage over the five-year term amortized over 25 years would save you approximately $15,111 - a lot of money saved with very little effort."

"Rates are a betting game," adds Durland. "Don't automatically assume the bank will give you the best rate - always ask for a discount. If you don't ask, you don't get." From: www.newscanada.com

Read more about mortgages and rates

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Mark

A. Mark Argentino
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Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
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RBC believes the Bank of Canada will hold rates steady over the next while

Bank of Canada to hold rates steady; C$ strength to slow growth

Healthy job gains and escalating wage growth this year are providing strong support for consumer spending, with real retail sales running 5.3% faster, on average, than in the same period last year. However, strong jobs gains, rising wages and the strong housing market will keep the Bank of Canada worried that fast-paced household spending will push the economy further into excess demand.

The continued deterioration in the U.S. housing market and the sky-high Canadian dollar are inflating the downside risks to the outlook for Canadian exports. Canada's dollar will likely continue to appreciate into early 2008, leading to softer demand for Canadian exports and resulting in the trade sector acting as a more significant drag on growth. We expect the Bank to cut the overnight rate by 25 basis points in the first quarter of 2008 and have adjusted our forecast for Canadian interest rates downward accordingly.

Interest rates are expected to trade at the low end of their recent range, ending the year at 4.10% for two-year yields and 4.25% for 10-year yields. In early 2008, a 25 basis-point cut in the overnight rate to 4.25% is likely to see short-term rates move modestly lower.

Our expectation that the U.S. economy will reaccelerate in the second half of 2008 will likely see the U.S. dollar regain ground against its major trading partners, with the Canadian dollar likely to drift back down through parity. This will take some of the sting out of the trade sector's bite on Canadian growth and will give the Bank room to reverse its early 2008 rate cut.

We still expect interest rates in Canada to grind higher in the second half of 2008 but have trimmed back our forecast to 4.5% for two-year rates (from 5.00%) while maintaining our previous forecast of 5.05% for 10-year rates at year-end.

read more about Historical Mortgage Interest Rates

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Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
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CREA announces that the Federal Bank rate in Canada holds steady and could be coming down in the next month

CREA Article Bank rate in Canada holds steady in September
Spillover from sub-prime loans

The Bank of Canada kept its benchmark overnight lending rate steady at 4.5 per cent on October 16th. The trend-setting Bank rate, which is set 0.25 percentage points above the overnight lending rate, remains at 4.75 per cent.

The Bank announcement indicated that economic growth has been stronger than previously expected, but will slow next year by more than it projected in July. It emphasized that weakening exports are anticipated to be drag on Canadian economic growth due to slowing U.S. economic growth and a stronger Canadian dollar.

The Bank also said that Canada's domestic economy remains strong, but that weaker economic growth next year will cause inflation to ease back to the two per cent mid-point of its inflation target. The Bank of Canada sets interest rates in order to contain inflation at between one and three per cent.

In line with its new forecast for economic growth and inflation, it said "the Bank judges, at this time, that the current level of the target for the overnight rate is consistent with achieving the inflation target over the medium term."

"Financial markets widely anticipated the decision by the Bank of Canada to hold interest rates steady," said CREA Chief Economist Gregory Klump. "For the second time in as many months, the Bank made no mention of the need for further interest rate increases. This provides a signal that further interest rate increases are on hold until the outlook for economic growth becomes clearer." The next rate announcement is scheduled for December 4th.

When the Bank decided to hold interest rates steady on October 16th, the advertised conventional five-year conventional mortgage rate stood at 7.19 per cent – up 0.24 per cent over the peak reached last year. Competition among mortgage lenders remains stiff, which continues to help many borrowers negotiate discounts of one per cent or more off advertised rates.

An increase in interest rates was factored into the CREA MLS® 2007 market forecast issued in August. "Sales broke all previous records in the first eight months of 2007, which will push annual MLS® home sales activity to new heights this year and reach the second highest level on record next year. Prices are also forecast to continue rising over the next two years," Klump added.

Source: Canadian Real Estate Association (CREA)

See the current Mortage Interest Rates

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Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
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Current Mortgage Interest Rates November 15, 2007

Mortgage Interest Rates November 15, 2007

5 Year Variable 5. 65 % (. 60% below prime for the entire term)

5 Year Fully OpenVariable .50 % below prime

3 Year Closed 5. 70 %

5 year Closed 5. 80 %

7 Year Closed 5. 88 %

10 Year Closed 5. 95%

Rates courtesy of Shelley Piva HLC Mortgage Specialist 416-251-5718

read more about Interest Rates

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

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Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
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RBC reports that Canada's ever-rising dollar tempering export outlook

Canada's ever-rising dollar tempering export outlook...

We expect that domestic demand will remain firm, backed by the improvement in the terms of trade (as export prices continue to outperform import prices), recent tax cuts, the strong labour market and historically low interest rates. However, the continued deterioration in the U.S. housing market and the sky-high Canadian dollar are inflating the downside risks to the outlook for Canadian exports. Since October 16, the cut-off date for the Bank's

Report

, the Canadian dollar has gained an additional 10% and touched its highest level in the postwar period at US$1.0826, well above the US$0.98 level assumed in the Bank's forecast.

...and will prompt Bank to lower overnight rate in early 2008

Canada's dollar is likely to remain elevated into early 2008, leading to softer demand for Canadian exports and resulting in the trade sector acting as a more significant drag on the pace of Canadian growth. The trade drag is likely to be greater than the Bank assumed in its October forecast, and we expect it will eventually prompt an easing in interest rates to offset this restraint. We expect the Bank to cut the overnight rate by 25 basis points in the first quarter of 2008 and have adjusted our forecast for Canadian interest rates downward accordingly.

We now expect Canadian interest rates to trade at the low end of their recent range, ending the year at 4.10% for two-year yields and 4.25% for 10-year yields.

In early 2008, the 25 basis-point cut in the overnight rate to 4.25% is likely to see short-term rates move modestly lower. Our expectation that the U.S. economy will reaccelerate in the second half of 2008 will likely see the U.S. dollar regain ground against its major trading partners, with the Canadian dollar likely to drift back down through parity. This will take some of the sting out of the trade sector's bite on Canadian growth and will give the Bank room to reverse its early 2008 rate cut.

We still expect interest rates in Canada to grind higher in the second half of 2008 but have trimmed back our forecast to 4.5% for two-year rates (from 5.00%) while maintaining our previous forecast of 5.05% 10-year rates at year-end. The two-year Canada-U.S. spread is forecast to narrow from +35 basis points at the end of 2007 to -35 basis points by the end of next year, with the 10-year Canada-U.S. spread holding in a range from -10 to -20 basis points.

Read more about Current Mortgage Interest Rates

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
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RBC expects Financial market volatility to prompt one more Fed rate cut in early 2008

Financial market volatility to prompt one more Fed rate cut in early 2008

Our assessment that financial market volatility will persist into early 2008 as the housing market meltdown continues suggests that investors and lenders will remain cautious and risk averse, which could limit credit availability and dampen borrowing activity.

Against this backdrop, we have revised our forecast and now expect that the Federal Reserve will cut the Fed funds rate by 25 basis points in the first quarter of 2008 to ensure that credit markets continue to function and that rates remain low enough to sustain borrowing by households and businesses.

Read more about Current Interest Rates

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Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
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Current Mortage Interest Rates

These are the current mortgage interest rates offered by one of the mortgage brokers that I deal with along with their discounted rates shown in the table.

TERM	POSTED	OUR RATES*
6 Month	6.75%	6.25%
1 Year	7.25%	5.55%
2 Year	7.4%	5.65%
3 Year	7.4%	5.7%
4 Year	7.4%	5.95%
5 Year	7.44%	5.94%
7 Year	7.65%	6.05%
10 Year	7.9%	6.15%
Variable Rate		3.05%
Prime Rate		6.25%

If you would like to see current rates, use this link Interest Rates

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
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Now's may be a good time to lock in a mortgage - but I still think to go short for the long term

Now's may be a good time to lock in a mortgage - but I still think to go short for the long term, read more here http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

Mortgage rates have hit multiyear highs, and there could be worse to come before things settle down.

Call it yet another example of collateral damage from the problems in the U.S. subprime mortgage market.

Simply put, it's costing banks and other lenders more to raise the money they use to finance mortgages, and they're passing the cost on to people buying homes and refinancing existing mortgages.

That's why the posted major bank rate for five-year mortgages is as much as 7.44 per cent right now, which is the highest level since May, 2002, and why new variable-rate mortgages are becoming more expensive almost by the day (existing variable-rate mortgages are unaffected).

A discount of 0.9 of a percentage point off the prime rate used to be a good but attainable deal for borrowers. Today, mortgage broker websites - remember, these guys have access to many lenders - are showing best deals of prime minus 0.6 or 0.75 points.

Alex Haditaghi, CEO of Mortgagebrokers.com, said his contacts with bank representatives suggest that fully discounted five-year rates could go as high as 6.5 per cent from their current level around 6 per cent. He also warned maximum discounts on variable-rate mortgages may shrink further. "Two banks have given the heads-up that if you want to lock up your clients, do it now because by Nov. 15 you're going to see us go to 0.5 below prime."

If you're looking for a house or have a mortgage expiring in the next three or four months, you should talk to lenders right now to lock in the best possible rate. A 120-day rate guarantee is pretty common these days and it offers a shield against further rate increases. Shopping around for rates is more important than ever today because lenders are all taking different approaches to the current mortgage-market uncertainty.

Borrowing costs for mortgages track rates in the bond and money markets, which in turn are a reflection of sentiments about where the economy and inflation are headed. Today, inflation is contained in Canada and recently there have been economic forecasts that call for slower but still solid growth in 2008. Add it all up and you have an environment where rates should be holding tight, not rising.

The reason why this isn't happening is related to the same junk mortgages in the United States that helped pushed the stock market into its summer slump. These mortgages were packaged into investments that were widely purchased by banks, investment dealers and other institutional investors who are now a lot more risk-sensitive than they were before.

One way for investors to manage risk is to demand higher returns, and that's in fact what Canada's lenders are running into when they issue the short-term securities they use to finance variable mortgage loans. If the banks have to pay more, they have to charge more to keep up their profit margins. So it is that we have the incredible shrinking variable-rate mortgage discount in Canada.

Fixed-rate mortgage rates have jumped recently in what can best be described as a catch-up to this past summer's financial market troubles. You'll see this not only in the five-year rate, but also in posted big bank one-year rates that are as high as they've been since early 2001.

Benjamin Tal, senior economist at Canadian Imperial Bank of Commerce, said lenders held mortgage rates steady through August and September, and even cut them a bit at one point. Then, with bond yields on the rise earlier this month, a decision was made to bump up five-year rates significantly. "You might say that consumers got an extra two months of relatively cheap rates," Mr. Tal said.

The biggest victims of the U.S. subprime mortgage situation here in Canada are people with poor credit histories, new immigrants and the self-employed. Their mortgage applications are being scrutinized more carefully than six months ago, and some people are being offered loans at higher rates or are being rejected.

Tighter lending rules are going to be a fixture for a while, but higher mortgage rates may prove temporary. CIBC's Mr. Tal said the factors making variable-rate mortgages more expensive will slowly die away, and he argued that the state of the economy in both Canada and the United States doesn't suggest much risk of rising rates. "Over the next six months, it's very reasonable to think that rates will be stable, with a bias downwards."

If you're in the market for a home, get a rate guarantee and then keep an eye on the housing market. It's been hot, like, forever and high rates are just the sort of thing to cool things down.

Mortgage rates

Big Six banks

Bank of Montreal Mortgage 7.44%
Bank of Nova Scotia 7.44%
CIBC Mortgages 7.44%
National Bank 7.40%
Royal Bank of Canada 7.40%
T-D Mortgage 7.44%

Who has the lowest rates

ICICI Bank Canada 5.75%
Canadian Tire Bank 5.85%
Manulife Bank 5.85%
Citizens Bank of Canada 5.99%
Comtech Credit Union 5.99%
First National Financial 5.99%

SOURCES: BANK OF CANADA AND CANNEX FINANCIAL EXCHANGES

Read more about what my suggestions that you should do here:
http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Positive CMHC Housing Market Outlook for 2007/2008

CMHC released their Housing Market Outlook for Q3 2007. The housing market forecast for the balance of 2007 and 2008 remains positive.

This article will highlight some of their findings (a "Coles Notes" version!):

Ontario - Overview

• New home construction activity will moderate but remain near historical averages in 2007 & 2008;
• Growth in Ontario's economy will range between 2 & 2.5% annually this year & next;
• Ontario's economic growth will lag behind the Canadian average, but the growth gap between Ontario & the west will gradually narrow.

Ontario - Resale & Prices

• Existing home sales through MLS will set a new record this year. Slightly higher carrying costs in 2008 will pull sales only modestly lower.
• A more balanced resale market, resulting from higher listings, points to slower growth in house prices;
• Average MLS price in Ontario will rise by 5.3% this year & 3.4% in 2008.

Mortgage Rates

• Moderate inflation and a strong Canadian dollar vis-à-vis the U.S. dollar, will help keep Canadian bond yields and mortgage rates flat over remainder of this year.
• Posted mortgage rates for 5 year terms are forecasted to be in the 6.5% - 7.5% ranges (for remainder of this year & 2008).

Ontario - Multiple Starts

• Healthy pool of first time buyers looking for less expensive homes combined with provincial gov't efforts to promote higher density construction, suggest condo apartments will remain in demand;
• Multiple starts will remain relatively stable - increasing slightly from 2007 to 2008.

Ontario - Single Starts

• Demand for higher priced detached homes will cool despite a rapidly growing population of 'mid 40s' which prefer low density homes;
• Single starts will cool from 2007 - 2008.

The Canadian Economy

• The Canadian economy grew at a faster pace than expected in first quarter of 2007;
• Consumer spending made a significant contribution to economic growth;
• Key challenge for the Cdn economy has been the deterioration in net exports due to high value of CDN $ & the slow growth rate in US economy;
• Consumer spending should stay vibrant thanks to high employment, income gains & relatively low interest rates.

The full report is available at http://www.cmhc-schl.gc.ca/odpub/esub/61500/61500_2007_Q03.pdf

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
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CMHC's new snapshot of Canadian housing

CMHC's new snapshot of Canadian housing

Canada Mortgage and Housing Corp. (CMHC) recently released its annual state of the nation report on housing. The 2007 Canadian Housing Observer says building greener homes in higher-density neighbourhoods near public transit, rather than in sprawling suburbs, is key to reducing the housing sector's impact on the environment and lowering greenhouse gas emissions.

The 2007 Canadian Housing Observer analyzes the relationship between environment-friendly housing construction, neighbourhood design and transportation. It found that downtown living, which provides easy access to workplaces, schools, and shops, as well as housing located close to public transit, lead to reduced automobile use. Also, better design of the suburbs results in less short-distance driving and lower greenhouse gas emissions.

The 2007 Canadian Housing Observer also examines recent trends in affordable housing, housing finance and market developments. A key conclusion about the living conditions of Canadians, which is based on new CMHC information, found that the level of Canadians living in core housing need has declined slightly from 13.9 per cent in 2002 to 13.6 per cent in 2004. Core housing need is defined as "Households which occupy housing that falls below dwelling adequacy, suitability or affordability standards, and which spends 30 per cent or more of their before-tax income for the median rent of alternative local market housing that meets all three standards."

Other key findings of this year's Canadian Housing Observer include:
- Housing-related spending grew by 6.1 per cent in 2006, contributing more than $275 billion to the Canadian economy;
- Total mortgage credit outstanding in 2006 reached an annual average of $694 billion, up 10.7 per cent from 2005. This is mainly due to increased property values, which in turn increased the average mortgage amount approved;
- All of the fastest-growing metropolitan areas in recent years were in Alberta, Ontario and British Columbia, with the exceptions of Moncton, N.B. and Sherbrooke, Québec.
- Canada's population grew at a slightly faster pace in recent years than in the late 1990s mainly due to increased immigration. Senior, immigrant and Aboriginal groups are growing more rapidly than the general population. From 2001 to 2006, the vast majority (86 per cent) of population growth took place in metropolitan areas.
- The number of households in Canada owning second homes, vacation homes, or cottages reached 1.1 million in 2005, about 200,000 more than in 1999. From 1990 to 2004, high-income earners enjoyed much stronger income growth than those with low incomes. From 1999 to 2005, the average net worth of households in Canada, after adjusting for inflation, grew at an annual rate of more than four per cent. Increased equity in real estate played a major role in this increase.
- In 2006, the proportion of gross domestic product spent on housing increased to 19.1 per cent compared to 18.9 per cent the previous year.
- Total spending on housing renovations, repair and maintenance reached $43.9 billion in 2006, an increase of nine per
cent compared to 2005.
- From a record low of 5.99 per cent in 2005, mortgage rates rose to an average posted rate of 6.66 per cent for a five-year term mortgage in 2006. They were still low by historical standards. CMHC's 2006 Mortgage Consumer Survey found that the majority of mortgage consumers (84 per cent) were satisfied with the services they received when negotiating their current mortgage. About 70 per cent of mortgage consumers prefer to use one of the major lending institutions to obtain a mortgage.
- Urban households in British Columbia and Ontario continued to experience a high level of core housing need between 2002 and 2004. One-person households accounted for almost half (46.7 per cent) of Canadian urban households in core housing need, up from 43.7 per cent in 2002. The incidence of core housing need among senior-led urban households declined from 15.4 per cent in 2002 to 13.9 per cent in 2004. The percentage of immigrant urban tenant households in core housing need increased to 36.3 per cent in 2004 from 34.4 per cent in 2002.
- The 20 per cent of households having the lowest incomes accounted for about 81 per cent of all urban households in core housing need in 2004, up from about 78 per cent in 2002. Courtesy of R.Paul Chadwick TD/CT

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
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Current Mortgage Interest Rates

Mortgage Rates

These rates are for fully qualified residential first mortgages.

Prime "A" residential rates effective on Thursday, October 18, 2007

Term	Posted rate	Your discounted rate
6 Months	6.70	6.65
1 Year	7.15	5.60
2 Year	7.40	5.65
3 Year	7.40	5.70
4 Year	7.40	5.70
5 Year	7.40	5.99
6 Year	6.85	6.30
7 Year	7.65	6.05
10 Year	8.00	6.15
VRM 5.65	Prime: 6.25

* Rates subject to approved credit.

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark ArgentinoP. Eng. BrokerSpecializing in Residential & Investment Real EstateThinking of Selling? Best Mortgage Rates Current Home Prices Search MLS RE/MAX Realty Specialists Inc.Providing Full-Time Professional Real Estate Services since 1987( BUS 905-828-34342 FAX 905-828-2829 ÈCELL 416-520-1577› E-MAIL : mark@mississauga4sale.com8 Website : Mississauga4Sale.com

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Bank of Canada is expected to "stand pat" on rates

Just a few weeks ago, most economists were expecting the Bank of Canada would again boost its key lending rate at the Sept. 5 policy meeting, following a similar hike in July. Not any more.

Now, the central bank is widely expected to stay on the sidelines when it announces its rate decision at 9 a.m. ET Wednesday. Recent surveys of economists by Bloomberg and Reuters failed to find any who believed the bank would hike rates.

Bank of Canada Governor David Dodge, left, and senior deputy governor Paul Jenkins leave their office for a news conference in mid- July.
(Tom Hanson/Canadian Press) What could cause such an abrupt change of heart, since the Bank of Canada indicated less than two months ago that "modest" rate hikes might be needed to wrestle inflation down?

"The answer is the financial market volatility over the last few weeks, caused by concern about exposure to U.S. subprime mortgages," said TD Securities economist Jacquie Douglas in a commentary issued last Thursday.

Douglas said the central bank's deputy governor, Pierre Duguay, hinted at just such a pause in a speech last week, when he noted that "given recent events in global credit markets, we need to assess the extent to which the risks around our July projection have shifted."

Stock markets in Canada have endured some heart-stopping declines since mid-July's record highs as investors worried about whether exposure to the risky U.S. subprime mortgage market would lead to wider economic fallout and a general tightening of credit and liquidity in Canada.

Given that the Bank of Canada was busy injecting billions of dollars into the fragile financial markets in early August to boost liquidity and keep its key overnight lending rate at 4.50 per cent, observers say it would send a decidedly mixed message to turn around and hike rates just a month later.

"An increase … in the very overnight rate the bank has been working so hard to keep down would badly compromise the clarity of that statement [of support for Canadian financial markets]," C.D. Howe Institute fellow-in-residence David Laidler said in a recent op-ed piece.

Inflationary pressures persist
But it's worth noting that, minus the current volatility in financial markets, the Bank of Canada would likely be raising interest rates.

For one thing, inflationary pressures persist. Core inflation was running at 2.3 per cent in the latest cost of living report — above the central bank's target of 2.0 per cent.

Wages have also been growing faster than inflation, the country's unemployment rate is at a record low, and figures out last week showed that GDP in the second quarter grew at a stronger-than-expected annual rate of 3.4 per cent.

These are not signs of a dramatically cooling economy.

TD Securities, for one, thinks the Bank of Canada will return to rate-hiking mode as early as October, after concluding the U.S. subprime market does not pose "all that big of a risk" to the Canadian economy.

Others don't see the central bank hiking until the new year. "In this environment, it still appears that the next move by the Bank of Canada will be to eventually start hiking rates again, although the depth and duration of the credit squeeze will determine when they get back to the tightening wheel," said BMO Capital Markets economist Doug Porter. "We believe that won't be until early in 2008."

A few economists are even calling for a rate cut by December.

Read more about Interest Rates

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
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Mortage Interest Rate Increases

A quick update on mortgage interest rates - most lenders announced rate increases today. There are still a few prime lenders who have held their rates but they are likely to follow the pack.

One of my most competitively priced lender will be increasing rates on Monday 9AM....the 5 year rate will increase by .25%. Clients who don't have a rate hold should obtain one during the weekend.

RATE UPDATE
October 12th, 2007

Prime Rate.6.25%
Variable Rate.Prime less .60%
1 year closed.5.60%
3 year closed.5.70%
5 year closed.5.60%*
7 year closed.5.78%*
10 year closed...5.85%*
25 year closed...6.70%

* for mortgage of $500,000 or greater; slightly higher rates for lower mortgage amounts
Information subject to change without prior notice. APR.E.&O.E.

Enjoy your day!
Mark

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
  
• On-Line Real Estate Newsletter sign up
  
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Predictions on US interest rates and where they are heading over the next while

This is what the so called experts are predicting on US interest rates and where they are heading over the next while.

This week (Oct. 4 - Oct. 10) the experts say: There is still much uncertainty as to whether rates will rise or fall.

Experts' comments
The 10-year is currently trading at 4.55 percent and has not moved much, which is no surprise. Conforming rates have been steady. The jumbo market has stabilized a bit, with some big players coming back into the market and others making pricing corrections for the better. We will continue to see an improvement in rates through the end of the year. Remember the Fed is watching LIBOR closely and that will help determine what the Fed does next month.
Mitch Ohlbaum, president, Legend Mortgage, Los Angeles

Stocks will soon tumble as consumer spending continues to slow. Bonds will soon rally, meaning mortgages will become much more affordable.
Jeff Lazerson, president, Mortgage Grader, Laguna Niguel, Calif.

This market doesn't have enough data, one way or the other, to cement a major shift. One thing is certain: Locking your loan early is the best bet. Mortgage bonds are trading in a range with stiff upward resistance and the slightest sign of inflation could send interest rates through the roof overnight. Expect volatility.
Dan Dowling, president, United Mortgage Capital Corp., Altamonte Springs, Fla.
unchanged
Money is flowing back into stocks at the expense of mortgage bonds. Rates will move higher as a result.
Dan Green, mortgage planner, Mobium Mortgage, Chicago

We are sitting in the middle of a six-week range of interest rates as short-term volatility is becoming the norm. What's causing this are inflationary fears from the last and forthcoming cuts from the Fed tempered by weak economic data. Look for this to continue. Opportunities will exist to capture a lower rate on the right days.
Jim Sahnger, mortgage consultant, Palm Beach Financial Network, Stuart, Fla.

We are seeing some lower rates from jumbo investors, but it is obvious that they still have to sell the stuff they have been sitting on for the past two months. With the housing market soft and mortgage rates artificially high with lower demand, there is little reason to sell that stuff at a loss unless there is opportunity to loan that money again at a profit. It is sort of a Catch-22.
There is no underlying problem here. The folks who hold those mortgages will sell them and the machine will get running again, it just appears that they are in no hurry.
There are a few strategic things which will result from this. Some banks will only make mortgage loans originated by their own employees. Some may stop taking loans from brokers.
Dick Lepre, senior loan officer, Residential Pacific Mortgage, San Francisco

Bankrate's analysts
The forward path of mortgage rates will hinge on the outcome of the employment report. I'll say that revisionist history shows job growth in the past two months and, while not pretty, it wasn't as bad as initially thought. This will give mortgage rates a slight bump.
Greg McBride, senior financial analyst, Bankrate.com

The economy appears to be slowing down. Today's rates seem low by this summer's standards, but they were lower than this for much of last fall to this spring. Those lower rates are the norm.
Holden Lewis, senior reporter, Bankrate.com

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


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Bank holiday - Mortgage Interest rate updates and Happy Thanksgiving

Monday was a bank holiday. With the sound of air conditioners buzzing it's hard to believe it's Thanksgiving!

• Interest rates have remained stable; however, most lenders have changed their pricing on Variable Rate Mortgages. Currently, Prime less .90% is available through only 1 lender. Others have decreased the discount to Prime less .50% and even Prime less .25%.
  
• Question: Do I need a rate hold if I plan on a variable rate mortgage?
• Answer: Yes! The rate hold will insure you get the lender's current discount - if the lender decides to change the pricing, within your rate hold period, your pricing discount remains in effect.
  

Mortgage Interest RATE UPDATE
October 5th, 2007

Prime Rate.6.25%
Variable Rate.Prime less .90%
1 year closed.5.60%
3 year closed.5.70%
5 year closed.5.60%*
7 year closed.5.78%*
10 year closed...5.85%*
25 year closed...6.70%

* for mortgage of $500,000 or greater; slightly higher rates for lower mortgage amounts
Information subject to change without prior notice. APR.E.&O.E.

If you have hosting duties this weekend, or need to bring along a dessert - this recipe is an alternative to the traditional pumpkin pie.

I hope you have a wonderful weekend!

PUMPKIN SQUARES

Easy to make, all the flavour of pumpkin pie without the work.

2 cups (500 ml) flour
1/2 cup (125 ml) icing sugar
1 cup (250 ml) unsalted butter, cubed
1 tsp (5 ml) salt
3 eggs, beaten
2 cups (500 ml) canned pureed pumpkin
3/4 cup (175 ml) packed brown sugar
1/3 cup (75 ml) corn syrup
1/2 cup (125 ml) whipping cream
2 tsp (10 ml) lemon juice
1 tsp (5 ml) vanilla extract
1 tsp (5 ml) cinnamon
1/2 tsp (2 ml) allspice or nutmeg
1/2 tsp (2 ml) ground ginger
1/4 tsp (1 ml) salt