Qualifying for a short term rate or variable rate

If you are wishing for a standard 5 year fixed rate for your mortgage, the lender allow you to qualify using that discounted rate. If you are interested in a variable rate or a term of 1, 2, 3, or 4 years, you must be able to qualify using the Benchmark Rate (which is 5.34% today). This means that although the rate you are given is lower, to ensure you could still afford the home should interest rates increase in the next few years, lenders require that your application qualify using a higher rate.

Resolution

There is not usually much change in the mortgage market leading up to the holidays. It is after the holidays and, sometimes even just before New Year's, that many lenders announce new products, roll out rate changes and begin to live by New Year's Resolutions. We know that some changes are expected for January 1st and if you are planning to buy a home, there is information you need to ensure you will qualify. Getting pre-approved is a perfect way to be assess your ability to buy a home and also secure interest rates for up to 4 months. Spring is just around the corner and now is the time to prepare. My services are complimentary and I am always here to help. Call me today!

Holiday Shopping

As the holidays approach, many people sit back and relax and try to have a little time off. For those of you who are first time home buyers, now is a perfect time to be shopping for a home. In my experience, sellers are more willing to negotiate and offer more flexible terms around the holidays. I have had many clients buy their first home around Christmas and get much better prices than in the hot Spring market. If you are considering buying yourself a home for the holidays, give me a call and I will be happy to get you pre-approved!

Not sufficient

The Bank of Canada met this morning and kept the Prime rate stable. Although both global and domestic economies are looking stronger, the Bank stated that there was not sufficient improvement to merit an increase and that our economy continues to require monetary stimulus. The announcement confirmed views that the economy remains fragile and prompted the Canadian dollar to drop. Based on the slower than expected growth, most economists now agree that a change in 2014 is no longer expected and that the first increase to Prime will likely come in 2015. The stability of prime has made variable rate products popular again. If you are unsure if you should consider a variable or a fixed rate, just ask me. I'll be happy to help you make the right decision for you.