Fixed Rate Mortgages vs. Variable Rate Mortgages

Important Mortgage News:
QUESTION:
Inevitably what happens when the difference between Fixed Rate Mortgages and Variable Rate Mortgages is small?

ANSWER:
Under current conditions both look attractive. However, the Variable Rate Mortgage would appear more attractive due to the initial savings at the beginning of the term.
It is likely that a borrower will be better off with the fixed rate mortgage when the difference between the two rates is small due to the inevitable rise of lending rates, in which case low rates over the course of the 5 year term would not be sustained.

Home buying step-by-step

Buying a home is one of the most important financial and lifestyle decisions you will ever make. To ensure you make smart homebuying decisions from start to finish, Canada Mortgage and Housing Corporation offers step-by-step tips.

Buying a home is one of the most important financial and lifestyle decisions you will ever make. To ensure you make smart homebuying decisions from start to finish, Canada Mor...

Productivity: Attention, please!

How to avoid distractions and get more done in less time.

By Jaclyn Law

Story Tools

According to a study out of the University of California-Irvine, workers typically switch tasks every three minutes, switch projects every 11 minutes and require 23 minutes to return to a task if interrupted.
You might think most distractions are external, but the research also found that 44% are self-initiated. That wouldn’t surprise Laura Watson of Calgary-based Venture Coaching, who says distractibility stems from anxiety in four areas: money; time; people and relationships; and information and decision-making. When we feel stressed, she says, we have trouble focusing and waste time on “self-sabotaging behaviours” such as excessive e-mail checking.

Andrew Patricio, CEO of BizLaunch, a Toronto training firm, suggests checking e-mail at specific times, turning off message alerts and setting a limit on the time you spend on social media.

Avoid letting others hijack your time with the seemingly innocent phrase: “Do you have a minute?” Ask whether a minute is realistic, says Karen Turner, founder of Calgary-based Turner Efficiency Coaching. She recommends scheduling brief daily or weekly meetings so employees know they’ll have a chance to talk to you and feel less inclined to drop in. Or better yet, says Patricio: “Train your employees how to work and make decisions on their own.”

First-time buyers are helping to fuel strong gains in the property market

First-time buyers are helping to fuel strong gains in the property market as they seek to get a rung on the housing ladder before interest rates rise, according to a report by RE/MAX.

Almost a third of 19 major Canadian markets are reporting a greater number of sales than the same period in 2010, with 70% saying average selling prices have increased, it said. The gains are being fuelled by western provinces, with prices in the Greater Vancouver area surging 20% so far this year.
The strong gains are being fuelled more by a desire of first-time buyers to take advantage of low borrowing costs than a rush to jump into the market ahead of changes to mortgage lending rules that tighten criteria for new homeowners, it said.
“With the Canadian economy on firmer footing overall, residential real estate is well-positioned moving into the traditionally busy spring market," says Elton Ash, regional executive vice president, RE/MAX of Western Canada. "Consumer confidence is climbing in conjunction with economic performance, and concerns over a secondary recession fade with each passing day. The mood is cautiously optimistic, as first-time buyers enter the market."
RE/MAX said affordability remains a concern and first-time buyers are scaling back their expectations on factors such as size of the property and location in order to be able to buy a home.
The lack of affordable housing for lower income and first time buyers is something that has been noted by planners and builders. There is a change in the country’s housing mix towards much smaller homes and condo units, it said.
In terms of housing prices, Hamilton-Burlington followed Vancouver in posting the biggest gains with an 8% jump year-to-date, followed by Quebec City, Winnipeg and Toronto.

Give Your Credit a Check-up!

With a little research and 5 simple steps, it’s easy to spruce up your credit profile:

1.       Get the facts

The first step is to get a clear picture of your credit profile. Order your Credit Profile, Credit Score and Debt Analysis online to get a complete picture of your current status.
Look closely at the data from the credit reporting agency to see that it all matches up. Keep an eye out for: 

1. Wrong mailing addresses
2. Incorrect Social Insurance Number
3. Signs of identity theft
4. Errors in your credit accounts
5. Late payments
6. Unauthorized hard inquiries

2.       Right the wrongs

Contact your creditors or send letters of dispute to the credit reporting agency to have errors on your credit profile corrected.

3.       Improve your behaviour

Identify problem areas on your credit profile and make a plan for improvement. If you’ve had a hard time paying your bills on time, sign up for an automated payment service. If your debt levels are above 50% of your available limit, create a payment plan to reduce your balances. Set goals for improving your credit and be sure to celebrate when you reach a milestone.

4.       Follow up

Check your credit again 30-60 days after disputing errors and changing your behaviour to see how much you have improved. If any of the disputed inaccuracies remain, contact the credit grantor to further your dispute and determine if the item can be taken off your credit profile. If you want to tell your side of the story, forward a written request to the credit reporting agency to have a consumer statement added to your credit file.

5.       Monitor your credit

To guard against fraud and keep your credit healthy, sign up for a Credit Monitoring service that will quickly alert you to any changes in your profile. Keep copies of your old credit profiles and letters of dispute in a safe place for future reference. Make a plan to evaluate your progress quarterly.

Bank of Canada keeps the bank rate at 1%

Bank of Canada keeps the bank rate at 1%

The Bank of Canada has kept its benchmark lending rate unchanged at 1% in its latest policy decision.  This is the fourth time in succession that the Bank of Canada has decided to maintain the benchmark at its current level.  While the Canadian economy has exceeded growth expectation in the last quarter, the US economy is still in a state of uncertainty particularly in the housing industry. The next interest policy decision will be held April 13^th and it does appear very unlikely that the Bank of Canada will be able to maintain this current policy.


What does this all mean to you???

This means that Canadians will enjoy this low rate environment for a little while longer but not forever.  This does provide opportunity to have a close look at your debt and mortgage situation and prepare yourself financially for higher rates. You do have more choices today in regards to managing your finances and taking great advantage of these lower rates. As quoted by the Bank of Canada governor Mark Carney “We have been warning Canadians to get their financial house in order as interest rates will rise at some point”  

Call me today and let’s have a closer look at your financial situation and let me show you all the options that you can take advantage of today..

                     
Kindest Regards,
           
Ronald Ephard
Mortgage Broker
(778) 881-0276
rephard@mortgagealliance.com

www.Mortgagealliance.com/ronaldephard

Gabriel Ephard and Bo Plamer Simon Fraser University Football on Global News