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mortgage interest rates as well as provide you
with timely information and a comprehensive overview
of GTA price trends.
NOTE: You can often negotiate a discount of 0.3 - .5% or more off posted rates. "Best" Mortgage Rates
BANK PRIME RATE
As of October 5, 2010 the Bank Prime Rate was
3.00%
On September 8th, 2010 the Bank of Canada
increased the prime lending rate another .25% to make it 1.00%. Bank prime
rate is 2% higher than this, so Bank Prime is now 3%
On July 20th the Bank
of Canada increased their prime rate another .25% to 0.75% The last increase
was June 1st 2010 and it was increased by .25% to 0.50%
The major banks in Canada charge their
best customers 2% above the Bank of Canada Prime Rate, which
means that the Bank Prime or Prime Rate that we see is now 2.75%
Bank Prime Rate means "best" and this is the rate that banks charge their absolute best customers for loans, which is usually only other lending institutions.
Changes in the Bank of Canada prime rate influence changes in other interest rates, including variable interest rate mortgages. This "bank rate" rate fluctuates based on economic conditions.
Some mortgage companies offer interest
rates starting at Prime minus .1% (or more) as an incentive to borrow
from them! These are known as "SUB PRIME" Mortgages
and we know what happened in the US when too many sub-prime mortgages
were given out in the mid 2000's One
of the dangers with sub-prime mortgages is when they come due too early
in the mortgage term and rates have increased, it's difficult to make
the change to much larger payments. Read more about Sub-Prime
Mortgages
Mortgage Interest Rates are on the rise, read more
It appears that September will go into the history books as another
good month for GTA home sales. Although last month sales were down
slightly year over year, the volume of sales year to date are higher
for 2010 compared to 2009, indicating that real estate continues to
be healthy.
Homes sales in the GTA and Mississauga
were down in September compared to previous year and number of listings
were up. If
you are a buyer looking for a property right now, you know that our
marketplace offers a good selection, better than the previous few months.
Average prices are up considerably when you compare year over year.
October sales are steady and there are many new listings coming
on the market, now may be the time to capture a good deal!
All
the best,
Mark
Variable rates are now about Prime or just a little less at Prime MINUS about .2% to .5% or so, read more
Mortgage interest rates have risen slightly over
the past month or so, due to the bank rate increase. Bank
of Canada is predicting rates will increase again in mid year, read
more
Any way you look at it, interest rates are at or near all time lows
with bank prime at 3.00% , read more.
Our market continues to do very well, prices are up and so are sales
volumes. There are a good number of homes currently for sale
in Mississauga, we need good homes to sell!
It will be interesting to see what the next quarter brings as the
fall market is typically the second best period (next to
Spring). I
predict that it will be a good market with more properties coming on
the market giving larger selection. Average prices
will increase in September and October. Prices
may rise slightly, but volume of sales will be down due to less
urgency in the marketplace.
My observations for the Mississauga marketplace is that we continue
to see that prices continue to be strong and hold about steady or increase
slightly in many areas.
You are reading the latest newsletter
October Report
Last months Resale Housing Results Show Balanced Market!
This is the latest monthly report for TREB
for the average prices and the number of sales in previous month, both
were very strong last month.
This is the latest press release from TREB regarding the September
real estate market in the GTA
TORONTO, October 5, 2010 -- Greater Toronto REALTORS(r) reported
6,310 sales through the Multiple Listing Service(r) (MLS(r)) in
September 2010.
This represented a 23 per cent decrease compared to the 8,196
sales recorded during the same period in 2009. Through the first
nine months of the year, sales amounted to 69,069 - up four per
cent compared to the first three quarters of 2009.
"The level of sales in the second half of 2010 has been lower,
representing a balancing out period following record levels of
sales in the latter half of 2009 and first few months of 2010.
We remain on track for one of the best years in history for existing
home transactions in the GTA," said Toronto Real Estate Board President
Bill Johnston.
The average price for September transactions was $427,329- up
five per cent compared to the average of $406,877 reported in September
2009. The average selling price through the first nine months of
the year was $429,657.
"Resale homes in the GTA remain affordable," said Jason Mercer,
TREB's Senior Manager of Market Analysis.
"It is important to consider the positive impact of declining
mortgage rates over the past two decades. Simply considering home
prices relative to incomes does not allow for an accurate analysis
of affordability," continued Mercer.
"The share of average household income going toward a mortgage
payment on the average priced home in the GTA remains within accepted
lending guidelines. This is why the average home selling price
has continued to grow."
Read more reports on the Greater Toronto Resale Housing Market
You may wish to read about the Power of Sale section at my website that will show you the pitfalls to avoid and the clauses to put into your offer when you buy a Power of Sale property in Ontario. This new section will also explain Power of Sale and Foreclosure in detail. Read more here.
Last month was another strong month for sales. Prices and sales volumes were high, read more
I have a few 2011 calendars left in hand. If
you would like to receive one of my calendars, please
fill in your information at this form and I
would be happy to send you a calendar once they
arrive!
I found this very interesting mortgage rate website on the internet where they survey mortgage experts to gauge the state of mortgage rates over the next 30 to 45 days: Will rates rise, fall or remain relatively unchanged?
You may read about Sold Stats for W16, W19 and W20. If you want the stats for your area, just email me and I will send them to you.
Listing inventories are low, so if you are thinking of selling, this is a good time to list your home. The market has been 'very good' for the past month or so and new listings are need. Would you like a Complimentary & Quick Over-The-Net Home Evaluation of your property?
It appears as if rates may hold steady for the short term. Many feel The Bank of Canada may hold the course in the near future on their current level of 4.75% prime, (Current Bank prime is shown here), so this should keep mortgage interest rates at their current levels.
Average single family residential prices were
UP compared to the previous month. This
is typical for this time of year. Price
trends over the past 13 years indicate that
prices will likely increase over the next month
or so.
Last month was another very solid month to add to another banner year in real estate in the GTA. See graphs of the sales figures, read more
My blog is moving along, a little over 1,000 posts to date. I enjoy posting to it and keeping you current on the real estate market. I will update the blog throughout each month to keep you current with the real estate market. This newsletter will continue to be published monthly. Read my Mississauga Real Estate Blog
P.Eng. Broker (since 1987)
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