Fixed Rates Trending Downwards

After an increase of over 0.4% earlier this year in five year fixed mortgage interest rates, fixed rates for nearly all term lengths are falling this week. At it's height, the five year fixed rate being offered by many lenders had gone all the way up to 4.19% just a few weeks ago. Now, with the surge in real estate, and mortgage activity easing as we close in on the March 19th, 2011 deadline for mortgages to offer 35 year amortizations and refinancing up to 90% --the market has again eased and rates have correspondingly dropped. As of today, here are the best rates available through Alberta Mortgage:

Term Rate %
variable rate Prime - 0.80%
1 year closed 2.64
2 year closed 3.20
3 year closed 3.35
4 year closed 3.79
5 year closed 3.84
10 year closed 4.99

As always, all these rates are subject to qualification criteria and can change without notice. To get the most up to date rates, call one of the qualified mortgage professionals at Alberta Mortgage, or visit www.albertamortgagecentre.com.

To find out more about how the changes to mortgages can/could affect you, call one of the qualified mortgage professionals at 780-479-2222.

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.

Federal Government Announces Changes to Mortgage Qualification

Finance Minister Jim Flaherty announced on Monday January 17, 2011 that the Federal Government will be making the following changes to mortgage lending rules:
• Reduce amortization of mortgages from 35 to 30 yearson insured mortgages;
• Maximum borrowing limit from 90% to 85% on refinances;
• No longer insuring Home Equity Lines of Credit.
The first of these changes are to become effective on March 18, 2011 for amortization and refinancing rules and the Home Equity Line of Credit to take effect on April 18, 2011.

To learn about how these changes will affect Canadian homeowners, call Alberta Mortgage at 780-479-2222 or visit www.albertamortgagecentre.com.

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.

Home Purchasing Qualification

Posted by Anuj Gupta

"Can I buy a home with no money down?"

The mortgage brokers here at Alberta Mortgage are often asked this question, and 100% of the time the answer we provide is: Maybe, let's take a look. While there is currently no such thing as "100% financing," Canadian Homebuyers do have the ability to get financing that allows for them to make no "out of pocket" contribution towards the down payment on their new home. This article will explore some of the items that we at Alberta Mortgage are looking at in determining if it would be possible for an individual to purchase a home without having a full 5% for down payment.

There are 3 primary factors that represent the minimum requirements for purchasing a home without a full 5% down payment:

1. excellent credit
2. verifiable income
3. money for closing costs (lawyer, inspection, etc)

While these 3 basic criteria are generally always evaluated in the process of determining one's ability to qualify for a mortgage, their importance becomes paramount for those looking to purchase a home without putting 5% down from their own resources. Without any one of these 3 criteria met, nearly all mortgage lenders will not be able to help. However, if these 3 factors are met, it is likely that one of the qualified mortgage professionals at Alberta Mortgage would be able assist a potential home buyer with purchasing a home without a down payment. Other factors are involved the qualification process, but these 3 provide a strong foundation for mortgage qualification. If any 1 or more of the 3 above listed criteria are not met, it may still be possible to arrange for home financing.

For more information regarding this program, or for information about mortgage qualification in general, call Alberta Mortgage at 780-479-2222 or visit www.albertamortgagecentre.com.

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.

5 Year Fixed Mortgage Interest Rates Continue Slide

Published by Anuj Gupta, AMP, BComm
Mortgage Associate

5 year fixed rate mortgage interest rates have continued their downward fall since late-July, now falling as low as 3.79%. I expect that increased appetite for mortgage loans in the fixed interest rate segment by Canadian Mortgage Lenders will lead to further reductions in rate.

At the same time, the Bank of Canada(BoC) reduced its mortgage qualification rate by another 0.1% this week; now down to 5.49%. With this move, more Canadians are able to qualify for variable rate mortgages, as well as qualify for fixed terms shorter than 5 years.

For more information regarding mortgage rates and qualification, contact one of the qualified mortgage professionals at Alberta Mortgage at 780-479-2222 or visit http://www.albertamortgagecentre.com.