BOC Sees Recession Turnaround in 3rd Quarter

It looks like we have finally reached the promise land. After nearly 2 full years of a slowing economy, it appears that things have turned around. The Central Bank of Canada predicted that Canada would be heading out of the recession in the 3rd Quarter of 2009. The data is not out yet, but it is likely that the Bank will have forecasted correctly, as many of the current market indicators reflect a once again growing economy(visit my blog entry about market indicators here). Even with this news, the Bank remains prudent and has not yet raised its key interest rate from 0.25% --meaning variable rate mortgage holder are safe, for now.

For homeowners with existing Variable Rate Mortgages in place, this may be the time to convert to a Fixed Rate Mortgage –and prolong the one good part of the recession. As the economy recovers, fixed rates will continue their upward trend and the Prime rate is sure to rebound. For instance, in 2009 the 5 year fixed rate has gone from 4.99% to 3.29% to 4.09%* today. As the market recovers, expect to see higher five year fixed rates --as the market compensates for government cash infusions over the past 24 months.

For more information about interest rates, or to discuss the available options with a mortgage broker, call Anuj Gupta, AMP, BComm, Mortgage Associate with Alberta Mortgage @ 780-479-2222 ext 14 or visit http://www.albertamortgagecentre.com.

*subject to qualification criteria

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.

The "NO FEE REFINANCE": save between $1,000-$2,000 and still get the best rates!

Canadian homeowners looking to use the equity trapped in their homes now have an excellent, cost effective option. Alberta Mortgage is proud to be able to offer the new "No Fee Refinance" mortgage product to Albertan home owners, which is a program specially designed to reduce the cost(s) of refinancing a home.

In particular, this new program has been designed to eliminate the cost of: a lawyer, an appraisal, transfer fees and title registration at the time of refinance, saving homeowners anywhere from $1,000.00-$2,000.00 at the time of refinancing their home. The best part about this program, is that borrowers still get the best available mortgage interest rates on any available mortgage term!

At a time when money is tight, Alberta Mortgage is proud to be able to offer home owners yet another money saving home financing solution. Take into account the fact that mortgage interest rates remain well below historical averages, and homeowners can be looking at significant savings by simply by replacing their existing home mortgages and securing a historically low mortgage interest rate for the next 5 years. In combination, a terrific interest rate and the "No Fee Refinance" could save you thousands. Take it a step further, and home owners can save even more.

By consolidating their consumer debt (credit cards, car loans, personal loans) into their mortgages, homeowners can maximize their savings. Learn more about debt consolidation mortgages here.

To learn more about this amazing money saving mortgage financing solution, contact one of the qualified mortgage professionals at Alberta Mortgage at 780-479-2222 or visit www.albertamortgagecentre.com today.

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.