29 May 2007
May 29, 2007
FOR IMMEDIATE RELEASE
Bank of Canada keeps target for the overnight rate at 4 1/4 per cent
OTTAWA – The Bank of Canada today announced that it is maintaining its target for the overnight rate at 4 1/4 per cent. The operating band for the overnight rate is unchanged, and the Bank Rate remains at 4 1/2 per cent.
Information received since the April Monetary Policy Report (MPR) indicates that economic growth and inflation in Canada in the first part of this year have been stronger than the Bank was expecting. In April, both total CPI inflation, at 2.2 per cent, and core inflation, at 2.5 per cent, were above expectations. On the basis of available information, the Canadian economy is likely to have grown at an annual rate of about 3 1/2 per cent in the first quarter of this year - a full percentage point higher than was estimated in the MPR. The Bank now judges that there is somewhat greater excess demand in the economy than was thought to be the case in April. U.S. economic activity has come in largely as expected and continuing robust growth outside North America has maintained the global demand for, and high prices of, many commodities produced in Canada. Against this overall backdrop, the Canadian dollar has risen appreciably above the range assumed in the Bank's April projection.
On balance, the Bank judges that there is an increased risk that future inflation will persist above the 2 per cent inflation target and that some increase in the target for the overnight rate may be required in the near term to bring inflation back to the target.
An updated analysis of the Bank's outlook for growth and inflation, including economic and financial developments, trends, and risks, will be set out in the Monetary Policy Report Update, to be published on 12 July 2007. Information note: The Bank of Canada's next scheduled date for announcing the overnight rate target is 10 July 2007.
26 May 2007
Surround yourself with positive people. Stay away from toxic people who participate in pity parties, gossip groups or gripe sessions. You become what you are around most.
Establish some positive habits that reinforce your self worth. For example:
Invest in yourself. Read books, listen to motivational or educational tapes, take a course or seminar. Education is a life long process.
Become a problem solver and a decision maker. Don’t settle for uncomfortable circumstances or unsolved problems in your life. Your life is a result of all the things you DO and DON’T DO.
Take responsibility for the results in your life. There are only two think in life RESULTS or EXCUSES. When you experience unfavourable circumstances in your life, ask yourself, “What am I going to do about it?”
Learn how to enjoy life on a daily basis, even when it is not exactly the way you would like it to be!
Smile and Have a Great Day!
20 May 2007
19 May 2007
The AMP is a new, national designation for mortgage professionals in Canada. Launched in January 2004, the AMP designation was developed as part of CAAMP’s ongoing commitment to increasing the level of professionalism in Canada’s mortgage industry through the development of educational and ethical standards. The AMP designation sets a single national proficiency standard for Canada’s mortgage professionals.
As an AMP we must adhere to strict ethical standards along with mandatory ongoing education. Why would you want to deal with a banker or a mortgage broker who is not an AMP?
Code of Ethics
Rule 1 - Ethical Standards
Members shall conduct their activities with honesty, integrity and professionalism, ensuring that they and their personnel are knowledgeable in the areas of the mortgage industry in which they participate. Furthermore, Members shall act in compliance with this Code of Ethics as well as sound business practices, including “Best Practices” or professional standards as established from time to time by the Board of Directors.
Rule 2 – Protection
Members shall use their best efforts to protect parties to a mortgage transaction and the public against fraud, misrepresentation, unethical practices or other violations of the Corporation’s Code of Ethics. Members shall report such infractions to the Corporation.
Rule 3 - Disclosure
Members shall disclose to all appropriate parties to a mortgage transaction:
a) any real or perceived conflicts of interest; b) all material information; and c) any personal interest, direct or indirect
Rule 4 - Confidentiality
4.1 Members shall hold in strict confidence any information arising from the professional relationship concerning the business and affairs of his or her client, and shall not divulge that information unless the Member is expressly authorized by the client or required by law to do so or, as required under Rule 7.1.
4.2 A Member, acting for more than one party to a transaction shall not act to the detriment of any one of the parties by withholding material information.
Rule 5 – Competence5.1 Members shall endeavor to be informed regarding the law, proposed legislation, and other essential facts relevant to public policies related to the services they provide.
5.2 When a Member is unable to render service in accordance with the standards required in this Code of Ethics, the Member shall decline to act.
5.3 A Member shall provide timely service and respond on a timely basis to inquiries from participants in a mortgage transaction.
Rule 6 - Member Competition
Members shall not unfairly criticize a competitor Member nor refer to another Member in a disparaging manner.
Rule 7 – Co-operation with the Corporation
7.1 Members shall co-operate with any investigation (an “Investigation”) by the Corporation of the Member’s conduct or the conduct of another Member. Co-operation may include providing access to and copies of all documents and answering all questions relevant to the Investigation, unless prevented from doing so by law.
7.2 Members shall testify, when requested to do so by an authorized representative of the Corporation, at any hearing involving another Member under the Code of Ethics of the Corporation.
7.3 Members shall not obstruct an Investigation, including withholding or concealing documents or information or attempting to influence the information or evidence that a potential witness might provide at any Investigation of a Member. A Member shall not submit false or misleading information to the Corporation, the CAAMP Ethics Investigator or any authorized committee of the Corporation.
7.4 It is unethical for Members to fail to comply with the By-laws and Policies of the Corporation.
Rule 8 - Advertising
All Members shall apply, set and maintain standards of honesty, truth, accuracy, fairness and propriety in advertising and shall comply with the Canadian Code of Advertising Standards, as established from time to time by Advertising Standards Canada.
Rule 9 - No Discrimination
Members shall not, when acting in a professional capacity, discriminate or participate in discrimination against any person and shall be aware of the rights and obligations of the applicable Human Rights codes in the jurisdictions where such Member conducts business.
Rule 10 - Laws and Regulations
Members shall conduct their activities in full compliance with all federal, provincial and municipal laws and regulations. Conduct by a Member that results in a violation of any criminal or civil code is unethical.
People fear what they don't understand. A good example is the purchase of a home. The average consumer knows very little regarding the home buying process. Between finding the right house, making sure it won't fall apart the day after it is purchased, and finding the best financing, it is no wonder that so many people are afraid to purchase their first home.
Buying a home is one of the most important financial decisions an individual will make. For a first-time homebuyer, the decision to purchase a home can be daunting. It will represent a major step forward as the individual/family will potentially be assuming its largest financial responsibility. As with any major decision, it is important that everyone, especially first-time homebuyers, take full advantage of the information and training that is available so they clearly understand the home buying process.
Before beginning the search for your dream home, it’s important that you do your research and become more fully informed.
Here are seven steps to get you started:
STEP 1: Visualize Yourself as a Home Owner
Before you start your house search, think carefully about what it will be like to be a homeowner. For most people, homeownership can be one of the most significant financial turning points in their lives. The advantages (tax benefits, pride of homeownership, financial investment) far outweigh any drawbacks.
STEP 2: Pull Your Credit Report
Your credit history is one of the first things a lender will look at in making a decision on your loan. Visit http://www.equifax.ca/ to obtain a credit report. Review it carefully to be sure all the information is correct. If you find discrepancies, you should work with the credit agencies to resolve them.
STEP 3: Determine How Much Money You Have for a Down Payment
Saving for a down payment can be one of the biggest barriers to homeownership. Mortgage lenders recognize this dilemma and many now offer low down payment loans and you can qualify for 100% financing. Three and five percent down payments are commonly available, and there are some loans that require no down payment.
You might be saving for a down payment. Or, you might already have it with sources that you didn't know were available.
The pre-approved mortgage will also advise you of the amount of money that you will need, and where you can get more.
� Income tax refund
� Savings bonds
� Checking and savings accounts
� Cash value of life insurance policies
� Borrow against a car or second home
� Retirement savings plan
� Starting a savings plan now
� (Or maybe even a credit card)
STEP 4: Choose the Right Lender for You
The mortgage broker vs. banks and mortgage companies. A mortgage broker has many different banks, savings and loan companies and mortgage companies that they "broker" their loans to, something like a stockbroker or independent insurance agent.
Since a mortgage broker does business with lots of banks throughout Canada, they can:
� Send the loan to many different underwriters
� Shop for the best rates and programs
Save you money by not charging loan origination fees
People fear what they don't understand. A good example is the purchase of a home. The average consumer knows very little regarding the home buying process. Between finding the right house, making sure it won't fall apart the day after it is purchased, and finding the best financing, it is no wonder that so many people are afraid to purchase homes.
Buying a home is one of the most important financial decisions an individual will make. For a first-time homebuyer, the decision to purchase a home can be daunting. It will represent a major step forward as the individual/family will be assuming potentially its largest responsibility. As with any major decision, it is important that everyone, especially first-time homebuyers, take full advantage of the information and training that is available to more clearly understand the home buying process.
STEP 5: Get Pre-Approved for a Mortgage
Before you begin working with a realtor, find a mortgage broker you can trust and ask them to pre-approve (not prequalify) you for a mortgage. Getting a pre-qualification letter is easy. You just call a mortgage broker or lender, provide some basic financial information, then wait a few minutes for the letter to come through your fax machine. Getting a "pre-qual" from a Web site is just as easy. Enter some information, click "submit" and voila. A pre-approval letter, on the other hand, involves verification of the information. Rather than taking your word on faith, the lender will ask for documentation to confirm your employment, the source of your down payment and other aspects of your financial circumstances. Granted, a pre-approval is more time-consuming (and possibly more stressful) than a pre-qualification the additional due diligence is exactly why the pre-approval carries more weight.
Most lenders will provide this service free of charge. Pre-approval will let you know exactly how much you can spend on a home purchase BEFORE you start your search. A preapproval in hand also makes you a more attractive buyer when you are ready to make an offer on a home. Home sellers are more likely to accept an offer from a buyer who can demonstrate the ability to secure financing.
STEP 6: Consider Using a Buyer's Agent
Most real estate agents represent the seller; they do not represent you as a homebuyer.
There is a fairly new type of real estate agent called a "Buyer's Agent."
They work for you, not the seller
You do not pay their commission - the seller does.
The buyer broker can disclose things to you about the seller (or the home) that they would not be able to if they represented the seller.
If a real estate agent will not offer you a buyer brokerage agreement, ask "Why Not". . .or better yet, find another agent!
STEP 7: Get Educated on the Home Buying Process
Many mortgage lenders, nonprofits, and even realtors offer homebuyer education classes to prepare you for homeownership. Classes normally run about four hours and cover the basics of home buying. Some of the topics covered are how to apply for a loan, find the right realtor, make an offer on a home, and the advantages and responsibilities of homeownership. The quickest and easiest way to get educated about the entire home buying process is to select a mortgage advisor and realtor who offer unbiased professional advice with your best interest in mind.
As we wrap on up these 7 steps, you may be wondering....
So, what's in it for you?
You can find ways to get out of the "trap" of paying rent.
You'll be confident that you made the right decisions about your mortgage.
You'll be at ease knowing that nobody rushed you into the wrong mortgage program because you had to apply for your mortgage within 3 days of signing your purchase agreement. Is 3 days long enough for you to make a decision that could last for up to 40 years?
Not too many real estate agents will teach you the information that I have just given you.
Your desire to own a home, combined with my knowledge, will increase your chances dramatically.
Lisette Amalfi Harris Mortgage Alliance o/a OAC Mortgages Inc
Senior Mortgage Consultant/Owner
P.S. More people who are renters now qualify to become a homeowner. Don't let fear or ignorance stand in your way. Our job is to educate and advise you. Call us today to take one step closer toward realizing your dream of one day becoming a homeowner.
Mortgage Alliance Oac Mortgages
We are legislated by the Ministry of Finance FSCO and our brokerage license is 10928.
We are dedicated to educating our clients about their mortgage! We want you to be well informed and comfortable with the mortgage you have and the options available to you. This blog is intended to offer information, updates, current mortgage products and current rates.
Please provide your feedback and let us know if there is anything else we can provide to help you in your mortgage process.