Christine Buemann Mortgage Broker

Deeply-discounted variable rates have historically beat out 5-year fixed rates roughly 77% of the time.But CIBC economist Benjamin Tal suggests the coming five years may “slightly” favour fixed rates. He displayed this chart at the CAAMP Forum on Monday that projects that the typical variable-rate mortgage (VRM) will be more expensive over five years than the typical 5-year fixed. That’s based on forward swap rates and a closing date in January 2011, says Tal.Tal was careful to point out that this isn’t a blanket recommendation of fixed rates; it’s more of a commentary on how narrow the gap has become between fixed and variable mortgages, based on market rate expectations.Some people will undoubtedly look at this and see no point in assuming the risk of a VRM given the minimal projected cost difference.Others will remain skeptical, with the belief that North America’s economy isn’t strong enough to spark sustained 3%+ inflation (and the rapid rate increases that would come with it). Th

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The posted 5-year rate reduction two weeks ago had all the trappings of a head fake. With bond yields* making 40-day highs, RBC deemed it appropriate to lower its 5-year fixed rates by .10%. Other banks followed suit as usual, and posted dropped to 5.19%. That’s Canada’s lowest posted long-term mortgage rate since the 1950s. 5-year yields closed up huge last Monday and discounted fixed rates followed. Most lenders have already announced fixed-rate increases. Regardless of your position on the fixed vs. variable debate, it can’t be overstressed how low fixed rates are right now. 5-year fixed mortgages are a whopping 1.66% below the 10-year average of the deep-discounted rates. Locking in at these all time low rates is like winning a small lottery, historically speaking. So if you need a fixed rate for a new mortgage closing in the next 180 days, be prepared to act—especially if yields continue higher. * 5-year bond yields typically lead 5-year fixed mortgage rates. Disclaimer: As always

Just nine days after RBC cut posted rates to new lows, they’re headed back up. TD is raising fixed rates 15-25 basis points, effective tomorrow. The posted 5-year fixed is going from 5.19% to 5.44%. This is the first such increase in almost six months. Other banks typically follow competitors’ posted rate moves within 1-2 days

Why use a Mortgage Broker? … to save money!! My clients have exclusive access to lenders and products not available through the bank they deal with on an everyday basis. I will shop the market on your behalf and find the best deal for you! Here is an example of the difference in our current rates as of Nov 15, 2010 : 5 Year Term - Bank's Rate = 5.29% - My Rate = 3.59% - Monthly Savings = $205 - Saving over Term = $12,317 3 Year Term - Bank's Rate = 4.00% - My Rate = 2.90% - Monthly Savings = $125 - Savings Over Term = $4498 1 Year Term - Bank's Rate = 3.20% - My Rate = 2.45% - Monthly Savings = $ 81 - Savings Over Term = $ 978 Contact me today for a hassle-free consultation. It is easy, FREE, and there is absolutely no obligation. *Based on a $200,000 mortgage over 35 years. Does not include any additional fees.

When investing in real estate, sometimes it’s necessary to look beyond your own backyard. The Real Estate Investment Network (REIN), a national organization of investors, has compiled what it says are the top 10 Canadian cities in which to invest. Few are major cities and some are surprising. Don Campbell, president of REIN, as well as one of the researchers on the study, says the results are based on factors such as planned transportation improvements, or if the area’s average income, population growth and job growth are increasing faster than the provincial average. Oddly enough, nothing east of Ontario shows up on the list, and while Mr. Campbell says cities like Halifax, Saint John and Moncton “still provide decent returns,” the top cities are ones that will outperform the national average between 2010 and 2015. 1)Calgary 2)Kitchener-Waterloo-Cambridge, Ont 3)Edmonton 4)Surrey, B.C. 5)Maple Ridge & Pitt Meadows, B.C. 6)Hamilton, Ont. 7)St. Albert, Alta. 8)Barrie & Orillia,

We currently have access to a cash back program that offers 5.5% back to the borrower. Clients who wish to take advantage of this offer would not qualify for the deep discounted rates, but they do still get the bank’s posted rates. At 5.29% for a $200,000 mortgage over 35 years, your monthly payment would be approximately $1075, including CMHC fees. If you take into account estimated property taxes and heating costs, the income required would be around $47,000. The cash-back portion of the mortgage can be used for the down payment as well as closing costs or post funding costs. In order for a family to save up the required 5% down payment and .5% for closing costs, they would have to put aside approximately $185 a month for 5 years. Keep in mind that that is on top of their current rent due as well. If real estate prices were to stay at the exact same value, at the end of the 5 year term on this example cash-back mortgage, the borrower will have close to 6% equity in their home. Inst