Today's best rates:

Mortgage Term Rate(%)
variable rate Prime - 0.80%
1 year closed 2.85
2 year closed 3.20
3 year closed 3.35
4 year closed 3.89
5 year closed 3.84
10 year closed 5.15

All rates are subject to qualification criteria and can change without notice. For up to date mortgage rates and information, visit www.albertamortgagecentre.com or call 780-479-2222 today.

Alberta Mortgage's Weekly Rate Update

For the most part, rates have held steady this week. Look for some movement in the coming weeks as market activity picks up.


Mortgage Term Rate

variable rate Prime - 0.80%
1 year closed 2.54
2 year closed 3.15
3 year closed 3.19
4 year closed 3.69
5 year closed 3.74

All rates are subject to qualification criteria and lender availability. Rates may change without notice.

For more information about mortgage rates, visit www.albertamortgagecentre.com today.

Prime Rises Again...

Last week, the Bank of Canada(BoC) raised its key overnight lending rate by 0.25%, resulting in a corresponding increase to the Bank's Prime interest rate to 3.00%. For the Central Bank to have taken this action in the midst of continuing uncertainty, and ongoing fears of a double dip recession can be viewed as a sign that the Canadian Government is confident in the Canadian economy's ability to sustain it's momentum; but also can be viewed as a sign of the Central Bank's insistence for keeping to its schedule for the economic stimulus program.

For those with Variable Rate Mortgages, this is an important time to evaluate your situation and discuss the impact of a rising Prime on your mortgage with a licensed mortgage professional. Since most variable rate mortgages offered by Alberta Mortgage carry the option of converting to a fixed rate, now would be a good time to sit down with a broker and evaluate your options.

For more information about mortgage interest rates, or to discuss your situation, contact one of the qualified mortgage professionals at Alberta Mortgage at 780-479-2222 or visit www.albertamortgagecentre.com.

Mortgage Interest Rates Discussion

It looks like mortgage interest rates are beginning to settle once again; with a drop of nearly 0.30% over the past 2 weeks in five year fixed rate mortgage interest rates --lessening the blow of the nearly 1% increase in early May, 2010. Today, existing and potential Canadian Homeowners can get a 5 year fixed rate mortgage with an interest rate as low as 4.35%, subject to qualification criteria.

Just 3 weeks ago, it appeared that we were finally on a path to returning to historical averages in mortgage interest rates --but the trend was unable to be sustained. With increased pressure from foreign markets, and a drop in real estate activity has resulted in precisely the drop indicated above. Normally, spring means higher fixed mortgage interest rates, however, this year that may not be the case. In the coming weeks and months, if market activity increases and other economic factors allow, Canadian mortgage lenders will likely again test the market's ability to tolerate a return to what would be considered historically "normal" fixed mortgage interest rates.

For more information about mortgage interest rates, call one of the qualified mortgage professionals at Alberta Mortgag e@ 780-479-2222 or visit http://www.albertamortgagecentre.com.

More Pressure on Fixed Rate Mortgages

Just 1 week ago, the vast majority of prime mortgage lenders in Canada raised their fixed mortgage interest rates for 3-5 year closed term mortgages. It appears that rates are again set to be increased. Canada's largest bank, RBC has just issued a press release confirming that the bank will be increasing its fixed interest rates by an additional 0.25%, effective Wednesday April 14th. While it is unclear as to whether RBC's competitors will similarly increase their rates for the second time in 10 days --it is clear that financial institutions are looking to increase fixed mortgage interest rates.

If you are looking to be in the market for purchasing a home sometime within the next 3-4 months, it may be a good time to contact a mortgage broker and secure a rate hold --thus protecting yourself from further increases in rates.

For more information regarding interest rates, or to get prequalified, contact one of the qualified mortgage professionals at Alberta Mortgage @ 780-479-2222 or Apply Online @ http://www.albertamortgagecentre.com.

Variable Rates Continue Falling

As expected, variable rate spreads have continued falling, now as low as Prime - 0.40%!*

This latest jump pushes totals to a difference in variable rates of over 1.40% in the past 8 months alone. If the trend continues --as I suspect, we could see variable rates falling back to 2008 levels (Prime - 0.90%) within the foreseeable future!

For more information regarding variable rate mortgages, and to get yourself pre-qualified, contact one of the qualified mortgage professionals of Alberta Mortgage @ 780-479-2222 or visit http://www.albertamortgagecentre.com today.

*subject to qualification criteria

Fixed vs. Variable Rates: the debate

Since late in 2008, the Canadian Mortgage Lending market has been experiencing a dramatic period of change. From fluctuations in interest rates to the emergence and disappearance of home financing products, the past 24 months have provided potential and existing home owners with a wide range of opportunities and challenges. Now, as the markets begin to settle, a new debate has emerged for the Canadian Home Owner: Fixed vs. Variable. Over the course of the coming weeks, we will discuss some of the potential benefits and challenges associated with both Fixed and Variable rate mortgages. We'll start of with Fixed Rate Mortgages.

5 year fixed rate mortgage have continued their downward trend through the first 2 weeks of December. Many are expecting to see even further decreases in rates over the course of the coming winter months, as buyer activity shrinks in the face of subzero temperatures, and a general post holidays slump in real estate activity. Fixed rate mortgage interest rates remain at or near historical average lows, and provide an excellent opportunity for existing and potential home owners to secure a great interest rate for the next 3 - 5 years. By taking advantage of a historically low mortgage interest rate, home owners can have peace of mind knowing that at least one component of their home ownership cost will be a constant for the near future.

However, while security is always great, variable rate mortgages are once again becoming increasingly attractive. As Canadian mortgage lenders become more confident in the market, and credit becomes more abundant, look for even more attractive Variable Rate Mortgage products to come out. In fact, over the past 12 months we've seen a tremendous shift in Variable Rate products --from Prime + 1.25% earlier this year, to now Prime - 0.25%! With Prime currently sitting at 2.25%, home owners can take advantage of as low as a 2.00% interest rate, and significantly increase their interest savings.

The debate will continue with next week's blog post, but for more information in the meantime call one of the qualified Mortgage Associates at Alberta Mortgage at 780-479-2222 or visit http://www.albertamortgagecentre.com.

Fixed Rates Continue Downward Trend

Five Year Fixed Rate mortgage interest rates continue to fall this week down to 3.89%,* further increasing affordability for existing and prospective Canadian home owners. Similarly, recent downward pressure on the Variable Rate side has led to the resurrection of the "Prime -" mortgage.

As the Canadian economy continues to recover from the economic downturn, look for even more competition in the Variable Rate market, further increasing affordability for Variable Rate Mortgage holders. However, many are forecasting that a recovered market will also mean significantly higher fixed mortgage interest rates. For more information about interest rates, and to get pre-qualified, contact one of the qualified mortgage professionals at Alberta Mortgage at 780-479-2222 or Apply Online @ www.albertamortgagecentre.com
.

* subject to qualification criteria.

On New News, Variable Rates Looking Attractive

Variable Rate Mortgages are looking more and more attractive. With a combination of the recent news that the prime rate will remain unchanged until at least the second quarter or 2010, and no reason to expect a dramatic rise through the year and the fact that Canadian mortgage lending institutions are once again competing for variable rate business, Variable Rate Mortgage holders are seeing significant savings. Considering that the same homeowner can see savings of over 1.5% on their mortgage interest rate between going with a variable rate over fixed rate mortgage today(a savings of $4,385.96 over a 12 month period!), the Variable Rate Mortgage is once again looking like a viable home financing alternative.

For more information about Variable Rate Mortgages, or to see what you could save, call one of the qualified mortgage professionals at Alberta Mortgage at 780-479-2222 or Apply Online at www.albertamortgagecentre.com.

5 Year Fixed Rate Mortgage Interest Rates Fall...Slightly

5 year fixed rate mortgage interest rates have fallen slightly after experiencing upward movement by as much as 0.6% over the previous 45 days.

As of today, 5 year fixed rate mortgages are available with an interest rate as low as 4.29%, subject to qualification criteria. We have also seen some downward movement in the variable rate products offered by many lenders, now available as low as Prime + 0.35% (2.60%), subject to qualification criteria.

For more information, call one of the qualified mortgage professionals at Alberta Mortgage @ 780-479-2222 or visit us online at www.albertamortgagecentre.com.

With the Market Recovery Just Around the Corner, Rates May Be on the Move

Today, the Bank of Canada has announced that they will be reigning in some of their lending stimulus programs now that the economy appears to be recovering. Should part of this reigning in involve upward movement of the Bank's key overnight lending rate, which would meaning a higher Prime lending rate --home owners with Variable Rate Mortgages would see increases in their mortgage rates and payments.

Fixed rates still remain well below historical Canadian averages, however, Fixed Rate Mortgage interest rates have seen upward movement by as much as 0.5% since May, 2009. To learn more about interest rates, and see if now is possibly the right time to do something about your mortgage, contact one of the qualified mortgage professionals at Alberta Mortgage at 780-479-2222, or visit www.albertamortgagecentre.com.

Indications are that fixed rates may be on the rise...

It appears that fixed mortgage interest rates may be getting ready to move again --but upwards this time. As discussed in a previous blog here, fixed mortgage interest rates are tied to the Canadian Bond market --as compared to variable rate mortgages, which move with the Bank of Canada's key overnight lending rate.

With recent recovery in the bond market and stronger than expected real estate activity, some lenders have already begun raising their five year fixed rates. If you were waiting for the bottom to refinance, it is possible that you missed it. Still, mortgage lending rates are well below historical averages and still offer a tremendous opportunity for existing home owners to reduce their living expense, and to help potential home owners qualify for the purchase of a home.

If you want to learn more about fixed mortgage interest rates, or would like to get pre-qualified or discuss the possibility of refinancing, call one of the qualified mortgage professionals at Alberta Mortgage at 780-479-2222 or visit www.albertamortgagecentre.com.

It looks like things might be getting ready to change

It appears that things may be on the verge of changing in the world of fixed mortgage interest rates. Below is some information about bond rates in Canada and their effect on fixed mortgage interest rates.

• Canadian 5 yr bond yields + .07bps to 2.09 - Four weeks ago it was 1.86. The spread today vs the 5 year rate is now down to 1.67%.
• http://www.financialpost.com/markets/market-data/money-yields-can_us.html?tmp=yields-can_us NEW LINK

The yield, rate of return on your bond, can be read through a yield curve, which is the pattern of yields on bonds. This increase in bond yield is something to watch. If the bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise!

For more information about interest rates, or to apply call one of the qualified mortgage professionals at Alberta Mortgage at 780-479-2222 or visit www.albertamortgagecentre.com.

Five Year Fixed Mortgage Interest Rates as low as 3.59%*

Canadians can now get a 5 Year Fixed Rate Mortgage with an interest rate of 3.59%! For existing and potential homeowners looking to get a great rate on their mortgage, but who are not interested in making large lump sum payments or moving within the next 5 years this mortgage may be the solution for you.

To learn more, get pre-approved, or get started call one of the qualified mortgage professionals at Alberta Mortgage at 780-479-2222 or visit www.albertamortgagecentre.com today!.

*Subject to qualification criteria

Fixed Mortgage Interest Rates Continue to Fall

Five year fixed mortgage interest rates have fallen again, creating even greater opportunity for prospective home buyers who were unable to afford home ownership in the past. the combination of existing real estate values and historically low fixed mortgage interest rates means home ownership is now much more affordable than it was over the past 3 years.

To find out if you qualify to purchase a home contact one of the qualified mortgage associates at Alberta Mortgage at 780-479-2222 or visit www.albertamortgagecentre.com.

Protect the Equity in Your Home

With real estate values having declined by as much as 20%, some Albertan home owners are finding themselves carrying mortgages that are equal to and in some cases even larger then their property values. In this type of scenario it is very important for home owners to bring down the principal portion of their mortgage as fast as possible in order to create some equity in their homes in order to build a nest egg or even refinancing opportunities for the future. There are many strategies that home owners can use to quickly and effectively bring down the size of their mortgages. Below, we will outline a few simple strategies that can pay dividends for years to come.

1. Increase the frequency of your payments
When choosing a payment scheme, make accelerated bi-weekly payments in order to get a "free" principal reduction which would be equivalent to one full mortgage payment every year, painlessly.

2. As income rises, raise your mortgage payments.
While disposable income is fun to spend, putting it towards your mortgage will save you a lot of money in interest payments which will be even more fun to spend in the future.

3. Round your payments up, instead of down.
Over time, by making even extra nominal payments of $20 to the principal, the amount of interest that you will be saving yourself from will amaze you.

4. If mortgage rates fall, don't reduce you payment scheme
If so far, you the payment amount has not been an issue of concern, then there is no benefit in reducing the payment amount. However there is a downside to reducing your payment being that interest payments will grow.

By taking advantage of these easy to use options available in most mortgages (as well as some other simple strategies)arranged by the mortgage professionals at Alberta Mortgage, home owners can save themselves hundreds and even thousands of dollars in interest on their mortgages. In addition to these simple strategies, with the help of one of a qualified mortgage professional at Alberta Mortgage you can save tens of thousands of dollars in interest without making any significant changes to your existing spending patterns. To find out more, call one of the mortgage professionals at Alberta Mortgage at 780-479-2222, or visit www.albertamortgagecentre.com.

Do Fixed and Variable Rate Mortgages Move in Unicen?

As we near the announcement of the Canadian Federal Budget next week, many potential and existing homeowners are expecting interest rates to drop --significantly. Accordingly, many people are similarly predicting mortgage interest rates to drop comfortably. While this prediction may come true, it is possible for the Bank of Canada to decrease its Prime Lending Rate without having any impact on Fixed Mortgage Interest Rates.

The reason a drop in the Bank's Prime Lending Rate does not necessarily equate to a drop in Canadian Mortgage Lenders' available Fixed Rate Mortgages is because the two are generally affected by a different set of factors, are designed to accomplish somewhat different objectives, and are controlled by an altogether different set of parties.

The Prime Lending Rate is a reflection of the Bank Canada's Overnight Lending Rate --which is the rate at which financial institutions are able to access short term funds. The Bank of Canada works with the Government of Canada to achieve targeted objectives set out by the Minister of Finance and Parliament. As a result of this relationship, the Prime Rate is often set in a way to maximize its positive effect(s) on the economy.

In contrast, Fixed Rate Mortgages are based on the Canadian Bond Market and therefore functions in response to market fluctuations and activity. As a result of this discrepancy between Fixed and Variable Rate Mortgage Interest Rates, it is possible for both to be moving in opposite directions --such as when the Government is looking to curb inflation while companies are seeking out capital investment.

For more information about Fixed and Variable Rate Mortgages, contact one of the qualified Alberta Mortgage Professionals or visit www.albertamortgagecentre.com or call 780-479-2222.

Debt Consolidation Mortgages: How do they work?

What is debt consolidation?

Debt consolidation (in the context of a real estate) is when an individual converts their high interest, short term debt (credit cars, personal loans, unsecured loans, car loans, etc) into a lower cost loan in the form of a mortgage or secured line of credit. The money that is used to replace the high interest debt comes in the form of a loan registered against the borrower's property for the value its existing equity. Through debt consolidation, individuals can drastically reduce their monthly payments and overall cost of debt and simplify their lives by replacing a multitude of payments with a single monthly pre-authorized mortgage/interest payment.

Can anyone get a debt consolidation mortgage/line of credit?

Debt consolidation mortgages and lines of credit are only available to individuals who already own real estate, and have some established equity in the property. If you own your own home and have some existing equity, you can possibly qualify for a debt consolidation loan --regardless of your current credit situation. If you own a home, you can qualify!

How does a debt consolidation mortgage/line of credit really work?

Lets say that you as an individual have $312,000.00 in debt ($250,000 mortgage, $40,000 in car loans, and $22,000 in credit card debt), which has a total monthly payment of $2913.67

After consolidating the same debt with a new mortgage at even 5.75%, the same $312,000.00 of total debt would have a mortgage payment of $1950.07

By consolidating your debt in this example, you save $963.60 each month without making any changes to your lifestyle or spending patterns! If you were to set aside $500.00 of the $963.60 saved each month, by the end of your 5 year mortgage term, you will have saved $30,000.00 without making any spending cuts, and actually having an additional $463.60 to spend each month!

With these savings in hand, you can not only save money each month on payments, but you will also be protecting your credit rating, reduce your interest expenses and have the ability to better your lifestyle and save for the the future.

If you own your own home, these savings can become a reality!

For more information about debt consolidation and mortgage refinancing, call one of the mortgage brokers at Alberta Mortgage at 780-479-2222 or visit www.albertamortgagecentre.com

Tips for minimizing the cost of your mortgage in today's economy: (renewals)

If your mortgage is coming up for renewal, there are a variety of strategies that you can and should employ in order to minimize the cost of your mortgage at the time of renewal. This article will provide you with a pair of simple strategies to employ at renewal time that will help you save money, and get a mortgage that will best meet your needs.

1. Learn about the available mortgage rates and products. Perhaps the most important thing to do at renewal time is also the simplest --shop around. Most Canadian Homeowners simply renew their mortgage with their current mortgage holder without first finding out what other rates or products are available to them. As a result, homeowners may end up with a higher interest rate, or with a mortgage product that does not provide options that will best meet their needs. When renewal time approaches, being educated it is just as important as it was when you first got your mortgage.

2. Assess your own financial and personal situation and determine whether this would be a good time to refinance, instead of simply renewing. Most Canadian homeowners have mortgages with closed terms because they generally offer lower interest rates. However, one drawback with closed mortgages is that they often have prepayment and payout penalties attached to them --meaning that when you refinance, sell your home or otherwise pay off your mortgage, you pay a fee. This means that when you want to take out equity from your home, you may have to pay these costs. However, at the time of renewal these penalties often do not apply. As a result, you save the cost of a payout penalty.

By using the strategies discussed above, you can save yourself money and get a mortgage product that will best meet your needs and satisfy your financial aspirations. To learn about more money saving mortgage strategies, consult a mortgage broker or visit www.albertamortgagecentre.com.