The 2010 Mortgage Consumer Survey , released today by Canada Mortgage and Housing Corporation (CMHC), shows that the Internet has become an important resource for first-time homebuyers with 89 per cent indicating that they looked online for mortgage-related information, while 84 per cent researched mortgage terms and conditions before deciding on a mortgage option.
Additionally, more than two-thirds (69 per cent) of first-time homebuyers used an online calculator to compare different options when shopping for a home. As a result, 85 per cent of first-time homebuyers noted they had a good understanding of the size of mortgage they could afford before buying a home, with the average Canadian homebuyer taking 12 months to plan their purchase.
“Canadians confirmed that they take the time to do research prior to buying a home,” said Pierre Serré, CMHC Vice-President, Insurance Product and Business Development. “Informed homebuyers contribute to the continued strength of Canada’s housing system.”
The survey noted that 81 per cent of recent homebuyers indicate that they are comfortable with the level of their current mortgage debt.
More than two-thirds (68 per cent)of recent homebuyers feel there is a strong chance they will pay off their mortgage sooner than required and more than a quarter (27 per cent) have already taken steps to pay down their mortgage through lump-sum payments or through increased regular payments.
CMHC April 26, 2010
Showing posts with label nelson bc mls home sales fixed term mortgage. Show all posts
Showing posts with label nelson bc mls home sales fixed term mortgage. Show all posts
Monday, April 26, 2010
Fixed mortgage rates rising: 2nd increase in April
Royal Bank, Canada's biggest chartered bank, is raising fixed mortgage rates by 0.15 of a percentage point, effective Tuesday.
TD Canada Trust will also raise rates by between 0.15 and 0.25 percentage points on Tuesday.
The increase is the second in April for the banks and the third in less than 30 days.
Flexible rates are not affected by the increase, a Royal spokeswoman said.
The increase leaves both banks' benchmark five-year fixed rate at 6.25 per cent, up one percentage point over a month. It went up 0.25 percentage points on April 14 and 0.6 points at the end of March.
The Royal's increase matches the rise in the bank's long-term funding costs and bond yields, the spokeswoman said.
The Bank of Canada warned April 20 that the period of very low interest rates was coming to an end. Analysts expect the central bank's key rate to go up in June.
RBC said eight mortgage rates, from six-month convertible to 10-year closed, will go up, as well as the charges on two special fixed rate offers.
The one-year closed rate will be 3.8 per cent and the 10-year closed rate moves up to 7.2 per cent.
Other lenders are widely expected to raise their rates, too.
CBC News: Monday, April 26, 2010
TD Canada Trust will also raise rates by between 0.15 and 0.25 percentage points on Tuesday.
The increase is the second in April for the banks and the third in less than 30 days.
Flexible rates are not affected by the increase, a Royal spokeswoman said.
The increase leaves both banks' benchmark five-year fixed rate at 6.25 per cent, up one percentage point over a month. It went up 0.25 percentage points on April 14 and 0.6 points at the end of March.
The Royal's increase matches the rise in the bank's long-term funding costs and bond yields, the spokeswoman said.
The Bank of Canada warned April 20 that the period of very low interest rates was coming to an end. Analysts expect the central bank's key rate to go up in June.
RBC said eight mortgage rates, from six-month convertible to 10-year closed, will go up, as well as the charges on two special fixed rate offers.
The one-year closed rate will be 3.8 per cent and the 10-year closed rate moves up to 7.2 per cent.
Other lenders are widely expected to raise their rates, too.
CBC News: Monday, April 26, 2010
Time For a Fixed Term Mortgage?
With the prospect of upcoming rate hikes looming over, many home buyers think that locking into the best fixed rate mortgage is the way to go. Does the idea of a mortgage with a fixed interest rate sound appealing?
There are mixed messages out there about when and if interest rates are going to go up. But just as important is a thorough understanding of fixed-rate mortgages and what it could mean for you and your home investment in the long run. Keep in mind that the cost of interest rates rising by 1% is equivalent to the home price falling by 10%. Historically when interest rates have gone up they have gone up fast. It is not uncommon for there to be a 1% hike in a matter of months.
Here are some common fixed-rate questions you may be asking yourself.
What does a Fixed Rate mean?
The interest rate on a fixed rate mortgage stays the same throughout the life of the loan. Typically, the standard for fixed-rate loans is the 20 to 25 year fixed rate loan. You can also find fixed-rate loans with shorter pay-off periods. When loan periods are shorter, you will have higher monthly payments, but slightly lower interest.
When are Fixed Rate Loans better?
The advantage of the fixed rate mortgage is that the payment is the same each month. This is important especially when interest rates are unpredictable. When interest rates rise, people with adjustable rate mortgages are faced with increasing monthly mortgage payments.
A fixed-rate loan means you will always know how much your home payment will be each month, regardless of what is happening with the economy or current interest rates.
What’s the downside of Fixed Rate Loans?
The disadvantage is that the interest is generally a little higher than an adjustable rate. With a fixed-rate loan, you’ll always pay the same amount of interest. That is great when interest rates are climbing, but if they drop below your interest rate, you will continue paying the higher amount of interest. Of course, you can always refinance a fixed-rate loan in order to get down to the best fixed rate mortgage but this may not always be an option.
Over the life of your fixed-rate loan, you will pay a substantial amount of interest. In fact, you will probably pay hundreds of thousands of dollars in interest. There are ways to manage your mortgage so that it is an investment that works for you, and you can do this by talking to a mortgage specialist.
Should you have a Fixed Rate Mortgage?
You should discuss your particular situation with a talented mortgage specialist. Generally, you'll find that fixed rate mortgages are the right choice if:
• You think interest rates are low
• You can afford the payment for the house you want
• You need to budget for and predict monthly payments
• You will keep your home for a relatively long period of time
The best fixed rate mortgage works for you and your lifestyle. If you'd like the peace of mind that comes with a stable interest-rate payment, then a fixed-rate mortgage may be the ideal choice. Borrowers often choose fixed-rate mortgages when interest rates are low and are expected to rise.
There are mixed messages out there about when and if interest rates are going to go up. But just as important is a thorough understanding of fixed-rate mortgages and what it could mean for you and your home investment in the long run. Keep in mind that the cost of interest rates rising by 1% is equivalent to the home price falling by 10%. Historically when interest rates have gone up they have gone up fast. It is not uncommon for there to be a 1% hike in a matter of months.
Here are some common fixed-rate questions you may be asking yourself.
What does a Fixed Rate mean?
The interest rate on a fixed rate mortgage stays the same throughout the life of the loan. Typically, the standard for fixed-rate loans is the 20 to 25 year fixed rate loan. You can also find fixed-rate loans with shorter pay-off periods. When loan periods are shorter, you will have higher monthly payments, but slightly lower interest.
When are Fixed Rate Loans better?
The advantage of the fixed rate mortgage is that the payment is the same each month. This is important especially when interest rates are unpredictable. When interest rates rise, people with adjustable rate mortgages are faced with increasing monthly mortgage payments.
A fixed-rate loan means you will always know how much your home payment will be each month, regardless of what is happening with the economy or current interest rates.
What’s the downside of Fixed Rate Loans?
The disadvantage is that the interest is generally a little higher than an adjustable rate. With a fixed-rate loan, you’ll always pay the same amount of interest. That is great when interest rates are climbing, but if they drop below your interest rate, you will continue paying the higher amount of interest. Of course, you can always refinance a fixed-rate loan in order to get down to the best fixed rate mortgage but this may not always be an option.
Over the life of your fixed-rate loan, you will pay a substantial amount of interest. In fact, you will probably pay hundreds of thousands of dollars in interest. There are ways to manage your mortgage so that it is an investment that works for you, and you can do this by talking to a mortgage specialist.
Should you have a Fixed Rate Mortgage?
You should discuss your particular situation with a talented mortgage specialist. Generally, you'll find that fixed rate mortgages are the right choice if:
• You think interest rates are low
• You can afford the payment for the house you want
• You need to budget for and predict monthly payments
• You will keep your home for a relatively long period of time
The best fixed rate mortgage works for you and your lifestyle. If you'd like the peace of mind that comes with a stable interest-rate payment, then a fixed-rate mortgage may be the ideal choice. Borrowers often choose fixed-rate mortgages when interest rates are low and are expected to rise.
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