0% down, 40 Year amortization still available

You may read that 40 year amortizations are hard to find, but 0% down, 40 Year amortization still available

While some homebuyers may be procrastinating on their purchases, it is important to let them know that they are still able to buy with no money down and amortize their mortgages up to 40 years.  

 

As these products will only be offered for the next two months (until October 15th). 

Combine that with falling interest rates.   The 5 year fixed has just come down to 5.24% and the variable is at 4.10% (or .65 below prime).   

Please let me know if you have any questions,

Mark

RBC comments on Bank of Canada on hold until early 2009

Bank of Canada on hold until early 2009

The Bank of Canada left the policy rate at 3% in early June and again in July and focussed its attention on the upside risks to the

inflation outlook.

With energy prices staying high, the headline inflation rate is likely to rise to the top of the Bank of Canada's target band.

The economy is set to rebound in the second quarter after the modest contraction in real GDP in the first quarter but will still post

only moderate growth this year, thus increasing the amount of spare capacity in the economy and alleviating some of the upward

pressure on prices.

The next move by the Bank of Canada is likely to be a rate hike in early 2009 as the economy's growth momentum builds going

into 2009.

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 ?
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RBC reports that the US is Not out of the woods yet!

Not out of the woods yet!

Most news about the U.S. economy has tended to be on the strong side of
expectations, but one key item suggests that the economy is not out of the
woods yet. The April survey of senior loan officers at 56 domestic banks and 21
U.S. branches of foreign banks showed that lending standards continued to
tighten early in the second quarter. Fifty-five percent of respondents at domestic
banks indicated that their institutions had tightened lending standards for
commercial and industrial loans, up from 30% in January. This, historically, has
presaged a significant slowing in industrial production, spending on machinery
and equipment, and cuts to payrolls.

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
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 : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2008 Calendar?

RBC comments on US Housing market — No relief

Housing market — No relief

The U.S. housing market recession continues in full swing, with home sales
running at least 20% slower than a year earlier, prices posting significant yearover-
year declines and the stock of homes for sale holding well above historical
norms. Residential investment fell at a 24.6% annual rate in the first quarter after
plummeting 25.2% in the fourth quarter of 2007 and subtracted a sizeable 1.1 percentage points from economic growth in the first quarter of 2008.

Foreclosures
were up in April and delinquencies are continuing to rise. Our forecast
assumes that the recession in this sector will continue through 2008. In 2009, the
combination of lower interest rates and lower house prices is expected to reduce
the inventory of homes for sale to more normal levels, which should put a floor
beneath new home construction after three years of significant declines.

Mark

Market slow down or stabilization?

Hello,

I hope you are enjoying your summer and have taken time for vacation and relaxation.


Let me ask you this. Is the market slowing down? Or is it just stabilizing? 2007 was a record year for home sales in Canada with 520,192 sales through MLS. We really can't get spoiled and expect it to always be increasing at the same rate. So what is expected for 2008? The expected number of sales through MLS for 2008 is 476,000 units representing a decrease of 8.5% from 2007. In 2009, that number is expected to drop another 2.3% to 465,000 units.

The fact is, the economic fundamentals in Canada remain strong. We have a very high employment rate, rising incomes as a whole, and low mortgage rates. This represents a strong foundation for a solid housing market. Now, this is expected to trend downwards slightly over the next year and a half, but it is no where near as bad as some people make it out to be.

Overall, the market is still relatively healthy. The average price of resale homes grew by 11% in 2007 and is expected to grow another 5.5% in 2008 and 3.3% in 2009, keeping the average MLS sale above the inflation rate. While the growth is slowing as the market stabilizes, it is important to keep in mind that it is STILL GROWING and DEMAND IS STILL STRONG by historical standards. Mortgage interest rates are expected to stay low through the end of 2009 with possible increase of only 25 to 50 basis points (1/4 to 1/2%) by the end of next year.

The reasons for the stabilization are of course, tied to the US market, as well as increasing carrying costs due to home inflation. I am not going to say that the market or economy isn't slowing. It is. It is unrealistic to think that it will always stay at the same pace.

Our economic growth is expected to slow to 1.8% in 2008, pick up to 2.3% in 2009 and by 2010 we are expected to be at 3.3%. Income levels are still increasing nicely, migration is still very strong and overall consumer confidence is still high as a whole, all fueling a strong market.


Source for the above numbers: CMHC and Bank of Canada.

On another note, The Bank of Canada had their rate meetings today and there has been no change to the prime rate. Their next meeting is September 3rd. Today's low 5 year fixed rate remains at 5.45% and the variable at 4.15% (with teaser variable rates available as low as 2.24%).


Please let me know if I may be able to help you with anything to do with real estate,
Mark

Where is our market heading?

If you're thinking of moving this year, you'll be glad to hear that the forecast for the Canadian real estate market continues to look positive for 2008. The Canadian economy continues to thrive with a high employment rate, a strong dollar and a relatively low cost of borrowing. In fact, more ?rst-time purchasers are expected to take advantage of the reasonably low mortgage rates, longer amortization periods and subsequently more affordable monthly mortgage payments.

If you've been holding off making a move, wondering if Canada will follow in the turmoil of the U.S. real estate market, rest assured that the problems stemming from the U.S. "subprime meltdown" do not necessarily apply to the Canadian real estate market. For one thing, the mortgage products offered in Canada are different than those offered to our neighbours to the south. In addition, our sub prime market is just a small part of our mortgage market, so the extent of any problems within that market do not affect our overall economy as in the United States.

Local conditions vary, even within a given area, so it's important that you consult a real estate professional familiar with the specific nuances of your neighbourhood for the local real estate climate.

As a real estate sales representative, I invite you to call me to discuss your plans for any upcoming moves. If you're not planning a move at this point but know of someone who is, I would appreciate your passing my contact information on to that person, and to your friends and relatives too.

To see a graph of how the spring market sales increase, please browse to this page:

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

Enjoy the nice weather we are experiencing!

Mark

Ottawa revamps mortgage rules

Hello reader,

The federal government announced yesterday that as of October 15th, 2008, they will no longer be guaranteeing mortgages amortized beyond 35 years, or mortgages with less than 5% down payment. Please read the article below for full details. There are basically three companies currently providing mortgage default insurance in Canada. CMHC, Genworth Financial, and AIG.

This announcement refers to government backed mortgages only, namely CMHC, and will not necessarily affect the other two insurers. This doesn't mean the other two insurers will not follow suit, but it does mean that they are not obligated to. Both Genworth and AIG will be having meetings in the near future to discuss their existing product line and any changes they want to make, if any. There are also some alternative lenders who are self insuring and are currently offering 40 year, 100% financing products, so even if all three mortgage insurers drop these products, they still may be available beyond October 15th, although, at a higher rate.

In the meantime, everything will remain the same and 40 year, 100% financing products will still be available until mid-October.


Today's lowest rate on a five year fixed is 5.45% and the lowest variable rate is 4.15% or 0.60 below prime (although there are teaser rates available as low as 2.51% below prime)

Ottawa revamps mortgage rules

KEVIN CARMICHAEL

Globe and Mail Update, Reuters

July 9, 2008 at 4:36 PM EDT

OTTAWA — The federal government says it will no longer guarantee 40-year mortgages, one of a handful of measures aimed at guarding against a U.S.-style housing bubble.

The Finance Department said Wednesday in a news release that the government will guarantee no mortgages with durations longer than 35 years. The government also will demand a minimum down payment equal to 5 per cent of the value of the home.

"Today's announcement marks a responsible and measured approach by the government to ensure Canada's housing market remains strong and to reduce the risk of a U.S.-style housing bubble developing in Canada," the Finance Department said.

The government hastened to emphasize that Canada's housing and mortgage markets were performing much better than in the United States.

Canadian housing prices are in line with economic factors such as low interest rates, rising incomes and a growing population and the demand for residential housing remains buoyant at more than 200,000 housing starts a year, it said.

The percentage of bank mortgages in arrears is also stable at 0.27 per cent, the lowest levels experienced since 1990 and well below the highs of 0.65 per cent in 1992 and 1997.

"The historically prudent and cautious approach taken by Canadian financial institutions to mortgage lending, combined with a sound supervisory regime, has allowed Canada to maintain strong and secure housing and mortgage markets," it said.

It nonetheless noted "accelerated financial innovation" in the mortgage markets since the fall of 2006, for example, allowing loans up to 100 per cent of the value of the house and increasing amortization periods to 40 years from 25 years.

The government will now require a consistent credit score for mortgages it backs, and a minimum level of loan documentation standards to ensure evidence of the reasonableness of property values and the borrowers' income.

In addition, government guarantees will not be allowed for high-ratio mortgages where amortization is not required in the first few years – e.g., mortgages that begin with interest-only payments.

Finally, it will set a maximum of 45 per cent on a borrower's debt-service ratio – the proportion of gross income that is spent on debt service and housing-related fixed or essential payments.

Mark

CMHC mortgages -Important changes announced

The Federal Government announced changes today on government backed mortgages - these changes will directly impact buyers who require 100% financing and the extended 40 year amortization.

Highlights:

• 40 year amortizations will no longer be allowed (for CMHC insured mortgages);
  
• Minimum 5% down payment will be required....(CMHC will no longer be able to insure 100% financing);
  
• Stricter documentation requirements:
  
• Higher minimum credit bureau score;
  
• New changes effective October 15, 2008.
  

This announcement was made today - so there will likely be more updates and clarifications made in the near future - I'll keep you posted.

Also, these changes are related to government backed mortgages (insured through CMHC). Two other mortgage insurers currently offer 100% financing and 40 year amortizations. At this time, they have not communicated any policy changes.

See the following link for the complete announcement: http://www.fin.gc.ca/news08/08-051e.html.

Also, word on the street....The Bank of Canada is considering a prime rate increase - and no doubt the banks would follow suit...if you need preapproval - this is a good time to secure a rate hold.

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

RBC reports Downside economic risks easing - Bank of Canada joins Fed on sidelines

Downside economic risks easing — Bank of Canada joins Fed on sidelines

The Bank of Canada defied market expectations and kept the overnight rate steady on June 10, indicating that the balance of risks

for the inflation outlook have shifted slightly to the upside and "that global growth has been stronger and commodity prices have been

sharply higher than expected."

Tentative signs that the U.S. economy will avoid recession and that financial markets, while skittish, no longer are priced for

recession, have dampened some of the downside risks to Canada’s economic outlook.

Canada’s first-quarter growth rate got bogged down by inventory drag and special factors, but the domestic economy is still

holding up reasonably well and we expect growth to rebound modestly in the second quarter, with the economy growing by 2.5% in

the second half of the year.

The Bank of Canada is unlikely to switch to a tightening policy stance in the near-term, especially with the economy growing at a

slower-than-potential rate this year. The Bank’s concluding statement on June 10 that "there continue to be important downside and

upside risks to inflation in Canada, which the Bank will monitor closely" implies no policy action anytime soon.

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
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 : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2008 Calendar?

CMHC reports that Housing Starts Edge Lower in May

CMHC Reports that Housing Starts Edge Lower in May
Total housing starts in the Greater
Toronto Area (GTA) trended slightly
lower in May. A continued decline in
low-rise home starts was moderated
by another strong month for condominium
apartment starts.

On an unadjusted basis, total housing
starts in the first five months of
2008 were up by 33 per cent compared
to the same time period a year
earlier. A resurgence in condominium
apartment construction was
the driver of the total starts increase
year-to-date, with starts of this
housing type more than doubling
through the first five months of the
year.

Strong pre-construction
condominium apartment sales in
2006 and 2007 have resulted in an
increase in new construction activity.
Rising house prices coupled with
strong first-time buying activity
resulted in increased demand for
less expensive home types over the
past two years, especially condominium
apartments.

Low-rise home starts during the first
five months of the year were down
13 per cent compared to the same
period in 2007. Semi-detached and
row houses experienced the greatest
decline, while single-detached starts
remained in line with last year's levels.
Single-detached starts have remained level because of strong pre-construction
sales in 2007. Many areas that
have experienced growth in single detached
starts in 2008 are also
those areas where average absorbed
prices are below the average for the
GTA as a whole.

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

CMHC Starts decline to be felt on single home starts

Starts decline to be felt on single home starts

Across Canada, starts of singledetached
homes, which remained
near the 120,000 mark between
2005 and 2007, will decrease by 13.6
per cent to about 102,700 units in
2008 and by 3.6 per cent to 99,050
units in 2009.
The decline in residential construction
will not be felt as much in the
higher-density housing segments. In
response to the rise in new and
existing home prices, a larger share
of home buyers will purchase less
expensive multiple homes. Multiplefamily
homes include row and semidetached
homes, as well as condos
and rental apartments. Multiple
starts, which reached a 29 year high
of 109,426 units in 2007, will increase
slightly to 111,950 units in
2008. Multiple starts are expected to
decrease in 2009 for the first time
since 1998 to reach 100,850 units.

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

More predictions from CMHC on our futurereal estate market

Housing starts will trend lower in 2008

Higher mortgage carrying costs will be a catalyst for the decrease in residential construction to 214,650 units in 2008.

Seven of the ten provinces will register a lower number of housing starts in 2008 than in 2007. Housing starts, will reach 199,900 units in 2009.

MLS®1 sales to pull back from record in 2007

Record MLS® sales in 2007 Existing home sales, as measured by the Multiple Listing Service (MLS®), are expected to fall by 8.5 per cent in 2008 to 475,900 units.

In 2009, the trend will continue with a decrease to 465,000 units (-2.3 per cent). Despite a slowdown of MLS® sales, demand remains strong by historical standards.

So there you have it from CMHC
Mark

Canadian Home Building Boom is Coming Back to Earth!

Canadian Home Building: Back to Earth

On the heels of one of the best quarterly performances in the past 20 years in Q1, Canadian housing starts came down to earth in April with a tally of 213,900 units (at an annualized rate). Above-expected results in February and March had flown in the face of signs of moderation in the housing sector in recent months, including a softening trend in building permits. Therefore, it wasn't a complete surprise that, this time, starts undershot consensus expectations.

In April, the weaker tone was evident virtually across the board, both on a major segment and regional basis (with a few provincial exceptions). The multi-unit segment, which had been particularly strong in the previous two months (second and third highest tallies since 1978), gave back the most. However, activity in this segment remained relatively healthy, holding above its 12-month average.

The single-unit segment fell to its lowest level in seven years, accelerating its downward trend since 2004. Singles have been historically a better indicator of the sector's overall direction, so this should raise a red flag.

Regionally, starts slipped in all provinces except B.C., Manitoba and P.E.I. In the case of B.C., the increase was only a partial retracement of an outsized drop in March. Starts in that province remained below their 12-month average in April.

The biggest declines in percentage terms occurred in Nova Scotia, Newfoundland & Labrador and Alberta, although all of them represented payback for spikes the previous month. Despite falling for the second straight month, the pace in Ontario remained solid.

The Bottom Line: With growing signs that deteriorating affordability and mounting economic uncertainty are cooling residential real estate markets in many parts of Canada, it's only natural that new home building also moderates. While a U.S.-style meltdown is unlikely on this side of the border, the faster decline in singles starts in the past several months is cause for close monitoring.

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

Spring 2008 Housing Market Outlook for the GTA

I just wanted to pass on some highlights from the Spring 2008 Housing Market Outlook for the GTA. I am sure you will find this information useful.


Here are some highlights:

"More home buyers will meet their housing needs through the purchase of an existing home, in response to increasing choice in the resale market, as the gap between listings and sales widens. Generally speaking, when there is more choice in the resale market, fewer buyers will opt to purchase a home at the pre-construction stage of development and wait for completion a year or more into the future"

"Affordability underlies the increasing popularity of high-rise condominium apartments in the Toronto area. As the cost of owning a home has increased steadily since the turn of the new millennium, many households have had to turn their attention away from comparatively expensive low-rise housing types, in favour of condominium apartments."

"Even with more moderate sales over the next two years, existing home sales will still remain higher than the average for the last 10 years and in line with the average over the past five years.

"When buyers have more homes to choose from, they are less likely to make offers at or above list, or to enter into 'bidding wars' with other buyers"

The last page has the Forecast Summary which is also worth taking a look at.

Today's lowest interest rates for a five year fixed start at 4.90%. The five year ARM is at 4.10% (prime - 0.65).

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

June Report - Sales in May were moderate again and prices stable - sign of things to come?

June Report - Sales last month were moderate again and prices stable - sign of things to come?

TORONTO - Wednesday, June 4, 2008 -- TREB Members saw 9,411 sales of single family dwellings in May, TREB President Maureen O’Neill announced today. “While off last year’s pace, a 9,000 plus sales month is certainly indicative of a healthy market,” said the President.

Prices trended upward on a year-over-year basis, with the overall average going to $398,148, up four per cent over the May 2007 figure of $382,787.

The City of Toronto experienced a three per cent increase, to $434,271 over last May’s $422,163. The 905 suburbs averaged $374,629, up five per cent over the same time last year, when the corresponding figure was $355,341.

“Furthermore, inventory has increased 15 per cent to 27,267 listings over May of 2007. This is good news for potential homebuyers as it should keep year-over-year price increases to the low single digits.”

Sales GTA-wide declined 16 per cent from May of 2007, which saw 11,146 sales, a record month. However, this overall decline masked significant regional variations.

Within the City of Toronto, sales fell 19 per cent to 3,711 from last May’s figure of 4,578. Within the 905 suburbs, on the other hand, the decline was a less pronounced 13 per cent, to 5,700 sales from last May’s figure of 6,568.

Breaking down the total, 3,626 sales were reported in TREB’s 28 West districts and averaged $377,098; 1,606 sales were reported in the 14 Central districts and averaged $528,938; 1,938 sales were reported in the 23 North districts and averaged $430,240; and 2,241 sales were reported in TREB’s 21 East districts and averaged $310,724.

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