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30 September 2009

Prime -.05% still Leading the Pack


Prime -.05% Variable is still leading the pack. Last week, I had 6 TD clients contact me about their Prime +1.00% increase effective Nov 16th.

5 year fixed at 3.79, (Quick close rate, must close in 30 days)

3.84% for 5 year fixed, for closing dates up to January 30 2010. Any December/January renewals, you should call me to get your future mortgage rates protected.

I came across this article that gives a BMO economists opinion about our current real estate market. He is clearly seeing some upturns, and he is still supporting the theory that the Bank of Canada will not raise rates for the next 12 months.

One on one with BMO economist John Turner
By CMP Wednesday, 30 September 2009

Some economists are claiming the worst of the recession is behind us. BMO expert John Turner recently spoke with CMP's sister publication, CRE, about what this could mean for the real estate market and interest rates going forward.

There have been whispers that we may be nearing the end of the recession. Can you comment on this?

John Turner: According to BMO's Economics Department, the whispers are turning to shouts. Canadian consumer spending has turned upwards, while the housing market has seen an astonishingly fast recovery. Financial conditions are much improved and confidence is on the mend. BMO Economics estimates that Canada's recession ended in the third quarter, following three consecutive quarterly contractions. Aggressive monetary stimulus and hefty fiscal spending appear to have turned the economy around a little sooner than previously thought.

Do you think the Bank of Canada, by making the announcement on July 23, 2009 that the recession is over, is preparing Canadians for a rate increase (even though it said it wouldn't for 12 months)?

JT: BMO's economists think not. They think the Bank truly believes it won't need to raise rates until mid-2010. The recovery, at least initially, is expected to be soft due to weak U.S. demand. The unemployment rate is expected to climb moderately further, and inflation should remain below target for a couple of years until the slack is absorbed. It was recently reported that home sales have jumped 40 per cent between January and May 2009.

Aside from low interest rates, what other factors could have contributed to buyers getting off the fence and purchasing?

JT: There are a number of contributing factors, including pent-up demand accumulated during last year's downturn, the federal government's tax credit incentive for first-time home buyers, a growing sense that the worst of the global economic crisis is behind us and the government's insured mortgage purchase program which kept the credit taps flowing.

Of course, with interest rates being relatively low, this means lower mortgage payments for both first-time homebuyers as well as others. In some areas, prices have been holding steady and/or decreasing with recent market compression; this has led to better access to homeownership, which is a great investment. Everyone needs a place to live, and buying a home not only fulfils that need but also acts as an important component of a wealth accumulation strategy.

How might the forecasted increase in housing starts affect the real estate market from a buyer's perspective?

JT: BMO's economists expect housing starts to trend higher as the economy recovers, but remain soft for a while as a result of some overbuilding during the previous boom. The rising starts will help to keep the market balanced, since it now risks shifting back to a sellers' market if demand remains strong. The current four-month supply of resale listings is in line with, if somewhat below, historic norms.

The age old debate of fixed vs. variable is alive now more than ever. What should buyers take into consideration when deciding?

JT: It all depends on what the buyer is comfortable with and what they're looking for. Fixed rate mortgages are great for Canadians who are concerned about upward pressure on rates and who are looking for peace mind. With a fixed rate mortgage they get the peace of mind of knowing what their payments are going to be and how much of their mortgage they will have paid down at the end of their term.

On the other hand, variable rate mortgages - when taken over the long-term - have proven to be a winning strategy for Canadians over the last 25 years


David Kendall

Mortgage Agent License # M08004045
211 York Road, Unit 3, Dundas, Ont. L9H 1M9
OAC Mortgages Brokerage
License # 10928
An independently owned and operated franchise of the Mortgage Alliance Network

23 September 2009

Dave's E-mail: 09/23/09

TD jacks up home credit lines

Calling all TD Bank clients who received their notices about their secured credit lines going up to Prime +1.00% effective Nov 16 or any other clients who are sitting with significant balances on their existing credit lines, there is a way to actually shift that debt to a Prime Minus position once again.

I really enjoyed some of the comments found at the bottom of that article…

Are you aware that a 1.00% increase to a credit line that was previously at 2.25% represents a 45% increase in rate….

We have one lender who is leading the markets who has brought back the Prime Minus mortgage.

Please call me for more information.


David Kendall

Mortgage Agent
License # M08004045

211 York Road, Unit 3, Dundas, Ont. L9H 1M9
OAC Mortgages Brokerage License # 10928
An independently owned and operated franchise of the Mortgage Alliance Network

11 September 2009

Dave's Email: 09/11/09

Bankers watch as Swedish interest rates goes subzero

I recently came across this article, and I am starting to question when or where is this all going to end ???

If someone told me that someday a government would pay someone to borrow money ?? The immediate answer would be no…. But in Sweden this is no longer the case.

Up until now I have been saying that with the Bank Rate at .25% there is nowhere for rates to go but up….

It seems there is a new term showing up on the distant radar, “SUB ZERO”…… not the high-end appliance company…

I think many countries are going to be watching Sweden very closely as they blaze a new trail in an attempt to stimulate their economy.

Is this really any different then the cash for clunkers program, it is still the government paying for growth….

Bank of Canada held steady yesterday, which will keep Prime at 2.25%

All morning I have been receiving emails announcing rate drops, but they are coming from the lenders trying to play catch up with the lenders who dropped last week. …

· Best 5 year fixed rate has dropped slightly to 3.89%. (Previously 3.93%) with free appraisal and free legals, on mortgage switches and refinances.

· We still have one lender offering a “BELOW” Prime Variable rate mortgage. This lender is at a full .25% lower than most of the Bank’s best variable rate mortgages.

PRIME -.05% or currently 2.20%

I met with a TD Bank manager this week; she let me know they are going to be increasing their existing secured credit lines clients to prime +1.00%. If you happen to be one of those clients who is currently maintaining a significant balance on a line of credit, the “below prime” offers a significant interest rate advantage. You would save $1260 each year on each $100,000 balance. Over a 5 year term you would save $6300.

This is an excellent time for most to re-evaluate their current mortgage situations, please give me a call and let’s see how much you could benefit from these lower mortgage rates.


David Kendall

Mortgage Agent
License # M08004045

211 York Road, Unit 3, Dundas, Ont. L9H 1M9
OAC Mortgages Brokerage License # 10928
An independently owned and operated franchise of the Mortgage Alliance Network

You could win up to $100,000.00 toward your Mortgage!!!
Visit our website today for all the details

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10 September 2009

Home Maintenance Tips for Fall from CMHC

Protect Your Home — and Your Investment!

Your house is more than the place where you live, it's your home and your most important investment. Carrying out a regular program of maintenance and repairs can help you protect that investment, and help keep your family safe and sound in every season.

In Fall, Canada Mortgage and Housing Corporation suggests you take a few minutes each week to perform the following simple tasks, which will help you to avoid the most common — and costly — problems before they occur. Some of these tasks include:

Check and clean or replace your furnace filters on a monthly basis during the heating season.

Have your furnace or heating system serviced by a qualified service company (every two years for a gas furnace and every year for an oil furnace).

Bleed air from the hot water radiators, and turn the gas furnace pilot light on.

Vacuum electric baseboard heaters to remove dust, remove the grilles on forced-air heating systems and vacuum inside the ducts.

If you have a heat recovery ventilator (HRV), clean the outside air intake grill, the filters inside the unit, and the core, and pour water down the condensate drain to test it.

Have well water tested for quality.

Check the sump pump and line to ensure proper operation. There should be no line obstructions or visible leaks.

If you have a septic tank, measure the sludge and scum to determine if it needs to be emptied before spring. Tanks should be pumped out at least once every three years.

Replace window screens with storm windows, and ensure all windows, doors and skylights shut tightly, including the door between your house and garage.

Ensure that the ground around your home slopes away from the foundation wall to prevent water from draining into the basement.

Clean leaves from eavestroughs and downspouts to ensure proper drainage from the roof, and check chimneys for nests or other obstructions.

Cover the outside of air conditioners, and drain and store outdoor hoses. Close the valve to the outdoor hose connection, and drain the faucet (unless it is frost proof).

Winterize landscaping by storing outdoor furniture, preparing gardens and, if necessary, protecting young trees or bushes for winter.

For more information or a free copy of the “About Your House” fact sheet Home Maintenance Schedule or for information on any other aspect of owning, maintaining or buying a home, visit our Web site at or call CMHC at 1-800-668-2642. Canada Mortgage and Housing Corporation (CMHC) is Canada’s national housing agency and a source of objective, reliable housing expertise.

9 September 2009

Dave's E-mail: 09/08/2009

They're Both Back !!!!!

Wasn’t it wonderful dropping off the children to start another school year? I found myself humming the “it's the most wonderful time of the year" song that has been on practically every radio/TV station. Don’t get me wrong, I love my kids but by the end of the Summer I am so ready for them to return to school.

The great news doesn’t stop there !!!!!

It seems a lone lender out there wanted to get into the Back to School Spirit, and late on Friday afternoon announced the return of the PRIME Minus variable rate mortgage.

Prime - .05% or 2.20%.....

We have also gone below the 4.00% rate on the 5 year fixed.

My best 5 year rate is now 3.92% (With free legals and appraisals for switches and mortgage refinances.) Some conditions do apply.

Also note that if the new mortgage is greater then $500,000 then 3.82% would be the effective 5 year rate.

Kids are back to school…….. Mortgage rates are coming back down…… !!!!!!

Can it get any better then this???


David Kendall Mortgage Agent License # M08004045 211 York Road, Unit 3, Dundas, Ont. L9H 1M9 OAC Mortgages Brokerage License # 10928

An independently owned and operated franchise of the Mortgage Alliance Network

4 September 2009

Variable Rate Mortgage Update

We have Prime MINUS .05% = 2.20% on a variable rate mortgage!

Best Variable Rate in Months!

Just released - Variable at Prime! 2.25%

Variable rate mortgages have been prime plus since late last year and have slowly been climbing down. We may soon see prime minus mortgage products become available again.

Best 5 year Mortgage Rate is 3.93%

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