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Bank of Canada cuts interest rates

The Bank of Canada today announced that it is lowering its target for the overnight rate by one-quarter of one percentage point to 4 1/4 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 4 1/2 per cent. The Bank is likely to trim rates again in January, although the tone of today’s press release does not hint at a significant easing campaign. The Bank is still officially concerned about upside risks to inflation (given a very low jobless rate), but the credit squeeze and a possible U.S. recession are the dominant concerns now. The Bank of Canada lowered interest rates yesterday, and took some pressure off the nervous borrowers and hard-pressed exporters and manufacturers feeling the sting of the soaring Canadian dollar. But the central bank also issued a dark forecast, raising concerns about weakening demand in the U.S. economy and continuing turmoil in global financial markets. Canada's big banks followed suit, lowering thei

AIG to Start Mortgage Guarantees in India

American International Group Inc., The New York-based insurer plans to enter mortgage guarantee business in India according to Sunil Mehta, country head and chief executive for AIG in India. India, Asia's third-largest economy, expects to invest about $500 billion building roads, ports and power plants in the next five years to spur economic growth. AIG has 7,500 employees in India and runs eight businesses, including money managing, aircraft leasing, property development and life and general insurance.

UK Mortgage lenders told to prepare for worse

The financial watchdog of UK (The Financial Services Authority or FSA) has issued one of its strongest warnings on the state of the mortgage market and credit conditions, telling lenders to prepare for worse times and secure adequate liquidity, even at high prices . It urged lenders to cut back on granting new loans to build up their financial strength, the FSA also warned them not to race to repossess the homes of customers in difficulties. It also pointed to potential difficulties for other borrowers next year when 1.4m short-term fixed-rate mortgages will need to be refinanced. The FSA requires firms to treat their customers fairly and have a written approach to dealing with customers in arrears. The FSA acknowledged that lenders would find it difficult to take a sympathetic approach to borrowers in the current environment. It is to inspect the approach of up to a dozen major lenders by the end of March and those which have breached the rules over arrears will face fines, public

Mortgage Rate Drops to 6.1%

Mortgage rates fell sharply this week with rates on 30-year mortgages dropping to the lowest level in more than two years. U.S. fixed-rate mortgages fell again according to Freddie Mac's survey released yesterday. 30-year mortgage rates dropped to an average of 6.10 percent this week, their lowest level since the week ended Oct. 13, 2005, when they averaged 6.03 percent. Analysts attributed the decline to increased worries that a severe slump in housing and a continuing credit crunch could drag the economy into a recession. The recent turbulence in stock markets has prompted many investors to rush to the safety of U.S. Treasury securities, driving down the yields on bonds. Fifteen-year mortgage rates declined to their lowest level in more than a year, falling to 5.73 percent from 5.83 percent last week. It was the lowest rate since the week ended Jan. 26, 2006, when the 15-year averaged 5.70 percent. For five-year adjustable-rate mortgages, rates edged down slightly to 5.86 per

Insured Home Mortgage Defaults Reach Higher

Defaults by U.S. home -owners with private mortgage insurance rose last month to the highest since at least August 2001, adding to evidence that the housing slump is getting deeper at the start of its third year. According to data released today by the Mortgage Insurance Companies of America the number of insured borrowers falling more than 60 days behind on their home loans climbed to 59,308 in October, 28 percent more than a year earlier. The median price of new U.S. homes fell 13 percent in October from a year earlier, according to U.S. government data released this month. Treasury department is working with large financial institutions to come up with a plan that will freeze resets on certain subprime loans. Fed Chairman Bernanke indicated in a speech last night that more rate cuts are on the table.

Foreclosure rescue scams

Foreclosure rescue scams are multiplying in the wake of the nationwide sub-prime lending crisis that has caused lenders to repossess hundreds of thousands of homes . Many victims never report these scams, and even when they do, prosecution is difficult, so no concrete statistics exist, but consumer advocates and law enforcement experts say the scams are increasingly common. Because lenders must file public notices of mortgage defaults, it's easy to find people who are on the brink of losing their homes . Con artists promise the homeowner that a network of investors would save their house from foreclosure by taking over ownership then renting it to them, promising that they could buy it back. Sure, the plan involves deeding the home to someone else. The promised advantages were appealing: cash back from the sale, lower monthly housing costs, assistance in improving the credit score and the chance to make money referring other people for similar lease-back plans. And you can buy b

Interest rate cut coming to Canada

Canadian interest rates could be coming down sooner than previously expected, experts said yesterday following Bank of Canada governor David Dodge's suggestion that a change to monetary policy could come next month. Dodge hinted the Bank of Canada may cut interest rates while he was in South Africa for a meeting of the Bank for International Settlements, saying global financial turbulence will be prolonged and poses a risk that central bankers must take into account. He added that the Canadian dollar has moved outside any normal ranges that it had been in, and these are really going to contribute to additional pressures. The Canadian economy, in particular manufacturing, forestry and tourism has been pinched severely in recent months by the dollar's sharp rise. A .25% cut may not be enough to bring the value of Loonie down but it will certainly be a boost for already strong housing market. The bank may have to cut rates even further to see some results in the currency mark

What You Need To Get A Mortgage These Days

Lenders have become more cautious because they can no longer be sure of unloading dicey mortgages on big investors. That means they could get stuck holding them on their books. While all lenders have become more cautious, the biggest turnaround has been in the sub-prime and jumbo mortgage markets. The sub-prime markets lend money to people with less-than-perfect credit while the jumbo market serves people with good credit who want to borrow more than $417,000. If you have good credit and want a smaller mortgage, you should have no problem qualifying. Banks are still willing to make "conforming" loans because they know they can sell them. Now-a-days Lenders are offering more straightforward deals and requiring their borrowers to meet these updated standards: Clean Credit Now lenders are back to what they used to be known for: scrutinizing credit scores. Out of a perfect score of 800, borrowers in the jumbo market must generally have a score of at lest 660, up from 560 sinc

Mortgage lending reaches new record in UK

Gross mortgage lending in the UK reached a new record in June, due to seasonal effects as well as the cost of higher interest rates, the Council of Mortgage Lenders reported. Although lending in June was up by 9% on May, this was a lower monthly increase for June than in each of the last two years (12% in 2006 and 15% in 2005). The Council for Mortgage Lenders (CML) warned the Bank of England today not to raise interest rates to 6 per cent despite revealing that mortgage lending soared to a record £34.2 billion in June. One of Britain’s biggest financial trade bodies urged the Bank’s rate-setting Monetary Policy Committee to “carefully assess” the impact of the five rate hikes made over the past year before taking any further action. Despite the record level of mortgage lending, there are signs that the market is feeling the cumulative effects of the five interest rate rises we have seen over the past year.

Mortgage rates holding steady

Mortgage rates held onto last week's substantial gains and 30-year fixed-rate loan remained at 6.73 percent for the week ending July 19. One-year adjustable rate mortgages averaged 5.72 percent this week, up from 5.71 percent last week. Last year, 1-year ARMs averaged 5.8 percent. June's housing starts unexpectedly rose to 1.47 million units, construction of one-unit houses still saw a decline of 0.2 percent: At 1.15 million units. The 15-year fixed-rate mortgage averaged 6.38% for the week ending Thursday, down just slightly from last week's 6.39%. The mortgage averaged 6.41% a year ago. To obtain the rates, the fixed-rate mortgages required payment of an average 0.4 point, while the ARMs required payment of an average 0.5 point.

How much the rates will rise?

The Bank of Canada made it very clear that it is going to raise rates come July 10. The bond market is already anticipating it. In fact, the bond market is already discounting roughly 50 basis points rate hike by September 2007. We had false alarms in the past where the bond market discounted rate hikes only to be proven wrong, with the 5 and 10 year bond rates rising and falling accordingly. But this time it seems that the bond market has a very good reason to predict a rate hike. The Bank of Canada is concerned about inflation (which at 2.5% ) and the fact that the labor market is still very strong. It is very possible that raising rates now will end up to be a monetary policy error with the Bank of Canada probably overshooting. The Bank of Canada appears to be determined to raise rates, and that’s what counts. How much will rates rise? Here, we have to realize that there are two important factors that should limit the magnitude of any rate hike. It is far from clear that the slump

Variable vs Fixed

Just like always, variable rate mortgages are offering bigger bang for your buck in Canada. Prime rate remains 6% and at 5.1% (prime -.90%) variable rate mortgage is the best interest rate available in the market for a mortgage that has a term of five years. The best rate available on a five year closed fixed rate mortgage varies from 5.45% to 5.65%. While adjustable rates have remained the same for over a year, fixed mortgage rates have consistently risen. Before April 2nd, 2007, the fixed rate was lower than the adjustable at 4.99%.

Your credit score

Believe it or not, your monthly bills are the ticket to your financial well-being. The way you handle those bills can make a difference that you can measure on the bottom line of your family finances. A good credit score (the higher, the better) is rewarded with good loan rates and access to money when you need it. A low credit score can cost you extra – even on your mortgage, where the debt is secured against your home. And you may be refused credit just when you need it most. You may want to check your own credit score once a year – to ensure that all the information in your file is accurate. You have a right to access your own credit records through a service like Equifax or Trans Union. There may be charges for mailing or internet downloading of your files, but it can pay to know your own credit score. It’s helpful to understand what’s behind that credit score: what impacts your score and what lenders are looking for when they check your credit. When those bills come in, do you pa

Pre-arrange your mortgage

Fewer people are getting their mortgage pre-approved when buying a home for the first time according to a survey done by Canadian lenders. Survey shows that percentage of first-time home buyers who pre-arranged a mortgage has declined from 73 percent in 2001 to 62 percent today. This trend shows that almost half of first-time home buyers are not doing any planning for their mortgage. Home mortgage should be part of your overall financial plan or you could end up paying thousands of dollars extra to your lender. A pre-arranged mortgage gives you time to negotiate the terms and conditions of the mortgage other than the interest rate, And not to mention the protection against fluctuating interest rate for up to 120 days. Getting a mortgage pre-arranged doest not cost you anything. Talk to your mortgage broker to pre-qualify and shop for a home with confidence.

Indian mortgages get expensive

ICICI Bank Ltd., raised the benchmark interest rate on all floating-rate loans, including mortgages, by 1 percentage point to 12.75 percent, thanks to the Indian central bank's monetary policy. This move came on top of a similar increase in February, and a half-percentage-point one in December. Central bank is punishing homeowners with higher interest rates and the government is rewarding them with big tax exemptions. There seems to be no clear policy on this issue. With the Indian growing at 9% /yr the interest rate relief may not come to India for some time.

UK mortgage demand lower

The number of mortgages approved in March fell by 8 per cent compared to the same month a year ago according to the British Bankers' Association. This is even when the average mortgage taken out this year was 12 per cent higher than in March 2006. Overall, there were 198,000 mortgages approved for all purposes in March, representing £22.3 billion. Net lending rose by £5.1 billion during the month. Economists say that a total interest rate rise of 0.75 percentage points over the past nine months is finally forcing borrowers to change their behaviour. Talk to your mortgage broker for more information before buying a home or condo .

Monetary Policy Report - Bank Of canada

The Bank of Canada released its April Monetary Policy Report today. Growth of the Canadian economy has been in line with the Bank's expectations as set out in the January Monetary Policy Report, but inflation has been higher than expected. The Bank now says that the Canadian economy was operating just above its production capacity in the first quarter of this year. Domestic demand continues to be the main driver of growth in Canada. Core inflation is likely to remain slightly above 2 per cent in the coming months, because of pressures on capacity and the impact of higher core food prices. Inflation is expected to moderate by the end of 2007. The Bank continues to believe that the risks to its inflation projection are roughly balanced, although there is now a slight tilt to the upside. On Tuesday, the Bank OF Canada left its key policy rate unchanged at 4 1/4 per cent (Prime rate 6%). Mortgage interest rates are expected to remain stable for a while. The next meeting is in May. Talk

UK Mortgage rates could hit 8% this year

The unexpectedly large rise in inflation means the Bank of England is sure to push through more increase in interest rates in coming months - so variable mortgage rates could top 8%. For anyone that hadn't realised, inflation (the Consumer Price Index) rose to 3.1% this month. Bank of England is under pressure to bring inflation down quickly. As a result, the bank looks increasingly likely to raise interest rates in May. What's more, this may not be the last rise we see, with some economists predicting that the base rate could hit 6% (or higher) come the end of the year. Three Bank of England rate rises have been pushed through since August 2006 taking the base rate from 4.5 per cent to 5.25 per cent and adding around £750 to the annual cost of an average £100,000 variable rate mortgage. The last time mortgage rates nearing these levels was 15 years ago. Talk to your mortgage broker in UK about the options available to you so that you can save some money in the future. Or move

High-ratio mortgage threshold changed

Canada is reducing the cost of home buying by raising the threshold for compulsory mortgage insurance. An amendment to the Bank Act allows borrowers to access conventional mortgage financing with a 20% down payment. Previously, home buyers were required to make a down payment of at least 25% or they had to pay mortgage default insurance premiums. Bill C-37 raises the loan-to-value ratio requiring mortgage insurance from the current 75 per cent to 80 per cent. High-ratio mortgage insurance will still be required for mortgages greater than 80 per cent of the home’s value. Homebuyers could save an estimated average of $2,500 in insurance premiums, based on an average home price of $300,000. The new limit also affects individuals who intend to refinance their mortgages. In addition to insurance savings, the change will also make it easier to obtain a larger mortgage than previously possible under similar circumstances for a borrower. For refinancing at 80 per cent, there is an extra f

FIRST NATIONAL FINANCIAL OFFERS AIG UNITED GUARANTY PRODUCTS

Reflecting a dynamic, changing mortgage landscape and trying to meet the demands of the growing mortgage industry First National Financial LP announced that it will offer clients mortgage insurance through AIG United Guaranty. First National Financial is the country’s largest non-bank originator and underwriter of residential mortgages. The combination of Canada’s largest non-bank mortgage originator with a member company of one of the world’s largest insurers will certainly mean more mortgage choices for Canadians. AIG United Guaranty is expected to sign up with other major lenders as well. More choices in the mortgage insurance field will certainly be good for consumers in the coming years as AIG United Guaranty tries expand its market share in the industry. Mortgage default insurance industry in Canada is currently dominated by 2 major players, CMHC (Canada Mortgage And Housing Corporation) and Genworth. Ask your mortgage broker about the mortgage default insurance options available

ING - UNMORTGAGE

Unmortgage is just another mortgage product offered by ING Direct. They have confused many people with this new "brand name". It's not not a reverse mortgage, its not a mortgage out of this world, it is just another mortgage product. It does have some good features attached to it. ING DIRECT UNMORTGAGE offers many payment frequencies, which include monthly, bi-weekly and accelerated bi-weekly. Many other banks offer the same type of options. In fact, many lenders also offer the option of weekly payments. Unmortgage also offers flexible terms (1-10yrs), amortization periods and prepayment options just like any other lender. ING also advertises best rates and terms, but I don't think they can beat all lenders out there all the time. If you are looking for a mortgage that offers the best interest rate at good terms, I recommend that you talk to your mortgage broker. The Mortgage Group in Vancouver has access to many lenders and mortgage products including ING's UNMOR

Canadians making bad mortgage choices?

RBC (Royal Bank) released it annual homebuyers survey few days ago. According to the survey many Canadians seem confused about the mortgage choices available to them, especially when they have to choose between a fixed rate mortgage and a variable rate mortgage. RBC's survey shows that most people will stick to the fixed rate mortgage products even when a "safe" variable rate mortgage is available that will save money. Majority of people find it difficult to choose between a fixed rate and a variable rate mortgage. The top reason for opting for a fixed rate mortgage is the preference for payments that don't change every month. Some 76% respondents believe that their mortgage payments will change each time the prime rate changes, even though its not true. Variable rate does not necessarily mean a variable payment each month. A mortgage broker can be a great help when it comes to understanding you mortgage needs. Ask your mortgage broker about the benefits of variabl

Why use a Mortgage Broker?

Most of think that mortgage brokers are only for people who have bad credit or were turned down by a bank. Unfortunately, anyone with this kind of outdated thinking could be losing thousands of dollars! New home buyers and all homeowners can save time and money by using the services of a mortgage broker. A mortgage broker has access to many competing lenders, including banks, pension funds, trust companies and even private individuals. While you may arrange a mortgage every five years, mortgage brokers are completing thousands of mortgages each year. This enables them to negotiate better interest rates, which can be passed on to their clients. There are other potential cost savings. On any given day, a particular lender may have a special rate offer for a specific mortgage term. Many home buyers take the quote from their bank and choose a term and rate offered by the lender without realizing that a mortgage broker may be able to save them up to one percentage point off the posted

Bank of Montreal Stops Using Mortgage Brokers

Canada's fourth largest lender by assets,Bank of Montreal, has stopped using outside mortgage brokers and will instead expand its own network of mortgage salespeople. Bank of Montreal (BMO)has been losing market share in the home lending business after it stopped discounting mortgages to compete with rivals last year. The Toronto-based bank made the decision on brokers last month, saying it wasn't as lucrative as selling mortgages through the bank. The bank is also no longer buying third-party mortgages. Bank of Montreal may take a hit in market share from the change. BMO may launch new mortgage products to compete with mortgage brokers, who are increasing market share every year. For more information on mortgages and related products, talk to your mortgage broker. Mortgage brokers have access to a wide range of products. Check out Abbotsford real estate financing options at Abbotsford Real Estate site or contact the Abbotsford realtor .

Mortgage Basics

There are many stresses associated with home buying – both financial and emotional. And frankly speaking, it doesn’t help that the process comes with its very own foreign language. While your mortgage broker can help de-mystify these terms, it helps to have a bit of a primer on what some of these terms mean. After all, it’s your money and your home we’re talking about; as a Mortgagor, you have a right to understand what you’re reading. (You didn’t know you were a mortgagor? Read on…) We’ll start with “Amortization” and “Term”. Both refer to periods of time in the life of your mortgage, and you’ll want to be sure that you understand the difference. The “amortization” of your mortgage is the length of time that would be required to reduce your mortgage debt to zero, based on regular payments at a specified interest rate. The amortization period is typically 15, 20 or even 25 years, although it can be any number of years or part-years. You could establish that you are able to make a c

UK mortgage sales higher, rates may rise.

Strong retail sales and an unexpectedly big rise in British mortgage lending suggest three interest rate hikes since August have failed to curb consumer spending. Another rate hike may be coming due to this new development. The Bank of England said mortgage lending rose more than 10 billion pounds ($20.1 billion) in February versus forecasts of 9.4 billion. Mortgage approvals held steady at 119,000 when analysts had expected a fall. A survey by the Confederation of British Industry showed retail sales volumes rose at their fastest pace in more than two years this month, twice as fast as expected. The strong lending performance was echoed elsewhere, with the number of approvals, often seen as a good indicator of future demand in the property sector, holding up pretty well during the month. The number of approvals was unchanged at 119,000, just ahead of market expectations.The housing market is a key factor in BoE rate decisions. Rate setters are hoping that the three interest rate incr

Can't make that mortgage payment?

More than 2.1 million Americans with home loans missed at least one payment last year, according to the Mortgage Bankers Association. The rate of new foreclosures hit a record. The problem is likely to get worse, as variable rate mortgages adjust to higher rates, many borrowers are finding they can't afford their payments. And the collapse of the subprime mortgage market has made it even harder. But be aware, If you are unable to carry your mortgage, letting the bank foreclose could lead to a lifetime of hardship. Losing your home is just the beginning. A foreclosure will damage your credit for years, making it impossible or at least extremely expensive to buy another home. If the proceeds from the sale of your home don't cover your mortgage loan, your lender might sue you to recover the unpaid balance. Many borrowers who lose their homes to foreclosure haven't tried to negotiate with their lenders. Lenders are usually willing to work with borrowers to avoid foreclosure. Yo

Tax deductible mortgages in Canada

Is you mortgage tax deductible? If you are like most Canadians the answer is NO. The interest you pay on your home mortgage is not tax deductible in Canada. But if you do some smart planning, the interest paid on a mortgage can become tax deductible, even when the mortgage is on your principal residence. I will be writing about how to make your mortgage tax deductible and how to pay off your mortgage faster than you think is possible. Check back in few days for these mortgage tips.

Mortgage Brokers In Abbotsford BC

Persistent Mortgages is the place to go for mortgages in Abbotsford BC. It is associated with The Mortgage Group of Vancouver. 6 brokers, Dave, Ken, Raj, Aman, Hakam, and Ray are available to help you with all your mortgage needs. The company is owned and managed by Dave McDonald. Dave specialises in commercial mortgages. Persistent Mortgages can help you get any type of real estate financing. Check out Persistent Mortgages if you are looking for first mortgage, 2'nd mortgage, 3rd mortgage, line of credit, debt consolidation loan, commercial mortgage or business operating loan.

CMHC - Mortgage Insurance For Self Employed

There is a good news for self employed people looking to get a mortgage in Canada. Canada Mortgage And Housing Corporation (CMHC)is improving its mortgage loan approval system that can help self employed people qualify for a mortgage. New program will be available next month. "Self-Employed Simplified" will make it easier for certain self-employed borrowers to obtain a mortgage loan insurance and as a result enable them to take advantage of of lower interest rates. Commissioned sales people will also benefit from this program. Program is designed for borrowers who have minimum 2 years of experience in the same type of work and good credit record. This product will be available for 1 or 2 unit owner occupied properties and will also be available for refinance for upto 90% of the homes value. Talk to your mortgage broker for more info. Visit myabbotsford.com for Abbotsford real estate information .

RED FROG MORTGAGE

What is "Red Frog" ?$? Envision Financial (credit union) named one of its mortgage products "Red Frog". Its like a big line of credit on your home. You must have at least 10% equity in your home to qualify for this product. The interest rate on a Red Frog mortgage is same as the prime rate, which is currently 6%. If prime rate changes, your mortgage interest rate will change. The disadvantage is that you are not getting the best rate compared to a five year closed mortgage term which can be as low as 5% (Its todays' best rate), or the 5 year variable rate mortgage wich is Prime rate minus .90% (means 5.10% today). "Red Frog" allows you to consolidate all your loans into one, including your credit card debt, line of credit, and overdraft limit etc. Interest is calculated daily on the balance of the total debt. If you deposit your pay cheque on friday in your Red Frog account you will pay less interest because your outstanding total debt will be lowere

Canadians want more flexible mortgage options

According to a recent survey conducted by Canada Mortgage and Housing Corporation (CMHC), 40 per cent of Canadian mortgage consumers are willing to make higher mortgage payments if it means they can buy a home sooner with a smaller down payment. Thirty per cent of Canadian mortgage consumers would also take longer to pay off their mortgage if it would improve their cash flow. The CMHC survey also shows that 75 per cent of Canadian mortgage consumers want to pay off their mortgage as quickly as possible, and 50 percent plan to use any extra money to pay down their mortgage principal. Today's mortgage consumers are extremely savvy shoppers who want the best product for their needs and sound advice as to what option is best for their financial situation. Home sales increased in almost every province January, fuelling continued demand for flexible mortgage options that make buying a home easier for Canadians. Whether shopping for their first mortgage, renewing an existing mortgage

The sub-prime story in the states

The market began another downward march Wednesday on growing fears that the troubles in the subprime mortgage sector are turning into a full-blown financial crisis. The Dow Jones industrial average tumbled more than 100 points shortly after noon Wednesday before rebounding, as investors began to worry that rising delinquencies in the mortgage market–which have sent the stock prices of subprime lenders tumbling–could start to affect the broader economy. All three major stock indexes were knocked down about 2 percent. Subprime lenders provide mortgages to people with poor credit. Though they are a relatively small part of the U.S. economy, their difficulties raise larger concerns about the housing market, which until its slowdown in recent years was a big source of money for consumers. Subprime loans feature higher interest rates for potential homeowners who don't have enough income to qualify for traditional fixed-rate mortgages. They are usually offered by the 50,000 independent

India in reverse mortgage mode

The Union Budget proposals of 2007-08 included the introduction of 'reverse mortgages' in Indian markets. The mortgage market in India is reasonably large. Its estimated size is around $33-39 billion, which is around 5% of the GDP. In other emerging countries such as China, the mortgage to GDP ratio is around 11% and in a developed country like the US, it is 52%. So What is a 'reverse mortgage'? In a regular mortgage, a borrower will get a loan from the lender at a particular interest rate and tenor, mortgaging his new or existing house. The borrower will then repay the loan in the form of equated monthly installments (EMIs), where a portion of the principal and the interest is repaid monthly. Usually, as time progresses, the share of principal in the EMI comes down and the share of interest rises. In a typical 'reverse mortgage', an existing home owner can generate cash flows (loan) from his house without selling it and continue to stay in it as along as he

AIG Enters mortgage default insurance market in Canada

American International Group, Inc. (AIG), is the leading international insurance organization with operations in more than 130 countries and jurisdictions. The mortgage insurance arm of AIG will be called "AIG United Guaranty". AIG United Guaranty will be competing with CMHC and Genworth for mortgage insurance business. Consumers will benefit from increased competition. Mortgage insurance premium rates may come down in the coming months and we will certainly see better and more flexible mortgage insurance products in the market. AIG United Guaranty will launch 13 product to start with. Check out their website for more info www.aigug.ca. Increased number of mortgage default insurance providers will provide greater home ownership access to a greater number of Canadians. Talk to your mortgage broker about mortgage insurance and options available to you or contact Raj at persistent mortgages, visit www.persistent.ca

Mortgage rates stable, house prices may rise

Canadians don't expect mortgage rates to rise, but do expect housing prices to go up, says RBC survey. Canadians voicing "buy now rather than later" preference The possibility of mortgage rates rising in 2007 seems to be of much less concern across Canada, according to RBC's 14th Annual Homeownership Survey. In fact, over half (57 per cent) of Canadians believe mortgage rates will drop or stay the same, compared to 31 per cent last year. The RBC poll also reveals that 49 per cent of Canadians are less apprehensive about interest rate increases, compared to 44 per cent in 2006. "When we assess the consumer sentiment being expressed in this year's study, a picture emerges of confident Canadians weighing their homebuying options in a very positive light," explained Catherine Adams, RBC's vice-president of Home Equity Financing. At the same time, while over half of Canadians (59 per cent) believe housing prices will rise in 2007, homebuying intentions

Mortgage Insurance

Canadian mortgage insurers are finding new ways to make home ownership affordable for more people. Mortgage insurance industry has come a long way since January 1946 when Canada Mortgage And Housing Corporation was established by the federal government of Canad to address post was housing shortage. In 1995 Genworth (GE company)entered the mortgage insurance market in Canada. Today its a multi -billion dollar marketplace with 2 major players, CMHC and Genworth . Other players may soon enter this segment of the insurance market. CMHC cover even small communities, where property values are not stable and private insurers don't like to go there. Both companies offer mostly similar products, new products are being launched on constant basis to stay competitive. Products offered: Mortgage insurance for self employed, based on the tax assessment +15% New Canadian (permanent residents) can take advantage of all the regular products at the same premium rates.Interest only mortgages ar

Bank of Canada holds interest rate steady

The Bank of Canada held its benchmark overnight lending rate steady at 4.25 per cent Tuesday and said the risks to its forecast remain balanced. This announcement surprised no one. Every economist polled by news agencies had predicted the central bank would make no change to its key rate, which hasn't changed since last May 24 when it was increased by 25 basis points. The target rate for overnight loans between banks remains 4.25 percent, the highest since August 2001 and 1 percentage point less than the U.S. Federal Reserve's target. he bank has held rates steady six times in a row following seven hikes ending in May 2006. "Despite recent volatility in global financial markets, the bank continues to judge that the risks to its inflation projection are roughly balanced," the bank said in a statement accompanying the rate announcement. "The main downside risk continues to be that growth in the U.S. economy could be lower than expected." Bank of Canada conti

Non-Conforming mortgages

What is a non-conforming mortgage product and who is it for? Non-conforming mortgages are mortgage product where traditional mortgage lending guidelines/rules are not followed by the lenders. Traditional or old fashioned or prime mortgages (as lenders like to call em) are for people who have excellent credit rating, good asset base, stable job or income history and lot of money (25%) for down payment. When you lack one or more items described above, you do not meet the big banks' lending guidelines and you can not qualify for a prime mortgage. Some lenders see a business opportunity in this and as a result more people are able to get a mortgage to buy a home. There are 2 types of non-conforming mortgages: 1 - Alt-A / Near Prime Alt-A is an alternative mortgage product for people who Have good credit history Have good down payment (30-35%) / low loan to value ratio Don't have proof of income or job security (mostly because they are self-employed and don't sh

Mortgage rates coming down? May be...

Global economy performed strongly in 2006 despite slow growth in Canada and the United States of America. Strong performance by European Chinese and Indian economies pushed the global GDP growth higher and fear of inflation remains strong. Central banks are willing to increase interest rates to control inflation. US economy started to slow in mid 2006. Housing market began a downward trend and it continues today. US housing market is not expected to decline too much and it may recover a little bit in 2007. Economy will grow at slower rate than capacity for the first half of 2007. In last half of 2007 and and in 2008 the economy should grow at higher rate as housing and other market stabilize. Canadian economy also slowed down in mid 2006.Tight labour market and rising wages are expected to have some influence on the growth rate of Canadian economy. Canadian economy will rebound as US economy begins to grow faster in mid 2007. Rising Canadian dollar helped keep the inflation under con

Stated Income / Stated Assest Commercial Loans Available

Unlike most bank loans, we have a stated income/stated asset program. That means full document paperwork isn’t required – and you enjoy greater flexibility and faster turnaround times. * No T1s, T4s or NOAs required * No income verification * Unrestricted equity take-out * Loan amounts up to $1.2 million * Secured on commercial properties like multifamily, mixed use, warehouse, office, retail, industrial, automotive, rooming houses and more * Several affordable payment options * 20, 25, or 30 year terms * Fully amortized loans * Prepayment options available Contact Raj @ Persistent Mortgages in Abbotsford for more information.

Canadians like to pay off mortgage debt fast

CMCH survey says 75% of all respodents to the 2006 mortgage consumer survey conducted by the Canada Mortgage And Housing Corporation indicated that they aim to pay off their mortgage as soon as possible. 50% said that they would pay extra money towards mortgage whenever possible. Canadians, particularly young Canadian are cautious about their mortgage financing. Canadian mortgage survey also says that 84% mortgage consumers are satisfied with the services available in the mortgage industry. Survey also shows that Canadian like to deal with Canadian based lending institutions. A small percentage of Canadians renew their mortgage with another lender or switch to another lender during the term of their mortgage, but majority of people remain loyal to their mortgage lender. 27% consumeres used the services of a mortgage broker, which is unchanged from previous years. However, when refinancing more people used a mortgage broker compared to past years. 71% Canadian refinance

MortgageAndMortgage.Com

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