Variable Rate Market Heating Up

It looks like the Variable Rate Mortgage market is getting competitive. In mid-2007, Variable Rate Mortgages seemed like they could become a thing of the past. Products went from Prime - 0.9% to Prime + 1.50% within 1 week, and many lenders discontinued the programs altogether. But now, as the market has regained some confidence, competition has returned to the world of the Variable Rate Mortgage. Over the past 45 days, Variable Rate Mortgage products have fallen as low as Prime + 0.25%, and this morning, out came news that Canadian homeowners now have access to a Variable Rate Mortgage with an interest rate of Prime + 0.15%.

If the trend continues, it is possible that we will see an at-Prime Variable Rate Mortgage before the end of 2010 --and possibly even a return to the days of Prime -. But for now, I'll take whats on the table.

To learn more about Variable Rate Mortgages, call Anuj Gupta, AMP, BComm of Alberta Mortgage @ 780-479-2222 ext 14 or visit http://www.albertamortgagecentre.com today.

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