Wednesday

Bank Of Canada Makes No Changes To Interest Rate - September 2013

The Bank of Canada made no change in its key policy interest rate this morning as expected, leaving it at the 1% level it has been at for the past three years.

“The global economy continues to expand broadly as expected, but its dynamic has moderated,” the central bank said, adding that conditions “appear to be delaying the anticipated rotation of demand in Canada towards exports and investment.”

But it said financial volatility has increased in a number of emerging economies, with the notable exception of China, which it says is still showing "solid" economic growth.

This announcement marked the second rate policy decision that new Bank of Canada governor Stephen Poloz has presided over since taking over in June. So far, he hasn't shifted away from the monetary and interest rate policy track set by his predecessor, Mark Carney.

The Canadian economy grew by 1.7% in 2012 and the bank is estimating 1.8% expansion this year.

Even though the Bank of Canada is not officially tightening mortgage rates yet, there is some tightening under way in mortgage markets, where interest rates have begun to move up at most major banks. 

Sunday

Mortgage refinancing – How it helps you avoid an impending foreclosure

Mortgage refinancing – How it helps you avoid an impending foreclosure
Author: Peter Gomes

If you’re worried about an impending foreclosure due to failure to keep up with your monthly mortgage payments, you may opt to get a refinance home mortgage loan. Regardless of the reason for your failure to make the monthly payments, a mortgage refinance is perhaps the smartest way to avert the possibility of a foreclosure. You might be wondering as to why you would seek refinancing help to save your homeownership rights. Well, read on to know how refinancing helps you avoid a foreclosure.

1. You can lower the interest rates: As you take a new mortgage loan to pay off your original home loan, you can easily lower the interest rate on the new loan. There is a rule that the interest rate on the new loan has be 2% lesser than that on the original loan. This will help you save enough money while refinancing. With lower interest rates, you can also have your monthly payments revised.



2. You may extend the term of the loan: It is not that a refinance home mortgage loan only serves in lowering the interest rates. You can even extend or shorten the term of the loan according to your financial need. If you have a good financial condition and you want to pay off your mortgage debts fast, you can easily lower the term and make extra payments towards your monthly installments. On the other hand, you may also extend the term of the loan so that you can lower your monthly payments and pay off in affordable monthly payments.



3. You may change the loan program: If you think that you can non longer cope up with the rising interest rates on your ARM or adjustable rate mortgage, you can choose to change it by refinancing. After you refinance your home loan, you may take a fixed rate mortgage and stabilize the interest rates throughout the term of the loan. This will again help you avoid an imminent foreclosure.
 

Therefore, if you’re a struggling homeowner and you know you’ll be certainly facing a foreclosure with the present terms and condition on your home loan, make sure that you take a refinance home mortgage loan and reap the benefits mentioned above. Just make sure that you refinance at a time when the rates are considerably low in order to strike a perfect deal.

Monday

Any banks offering 0% down payment for mortgage?

Are there any banks offering 0% down payment for mortgage? The answer is no in Canada. None of the big 5 banks in Canada including Royal Bank, BMO Bank of Montreal, Scotiabank, CIBC, or TD Canada Trust offer 0% down mortgages. CMHC and other mortgage default insurance don't insure 0% down payments home loans / mortgages any longer. You may be able to find a private lender that will lend at 0% down payment for your home purchase without the insurance. Private lenders will charge you higher interest rate.

Wednesday

Renegotiate Mortgage | Avoid Foreclosure | Mortgage Renegotiating Tips

While it is not advertised, most of the mortgage lenders out there are more than willing to renegotiate the terms of a mortgage deal after you sign the dotted line. Renegotiating interest rates on a mortgage loan is one of many options available to home owners who want to keep their houses but have problems paying the monthly mortgage payment. If your mortgage payment is due and you're unable to make your monthly (or weekly) mortgage payment due to a job loss or another situation beyond your control, don't ignore it. Pick up the phone and call your bank because they can sometimes help protect your credit and help you stay in your home. Your mortgage holder doesn't want to volunteer to help you, especially if they don't know you're experiencing problems making your mortgage payments. First thing you need to do is to make sure that you have all your information together. You need to be put together a good case for your mortgage bank. This is true whether you are renegotiating with TD bank, renegotiating with RBC - Royal Bank, renegotiating a mortgage with CIBC or Firstline, Renegotiating with BMO - Bank of Montreal, renegotiating your mortgage with Scotia Bank, renegotiating with First National, Renegotiating with MCAP, renegotiating with any credit union or even if its a renegotiation with a mortgage company or private lender. Often times a mortgage broker can help. Same idea apply if you are in the United States trying to renegotiate with a US bank.

Good luck
with renegotiating your mortgage.

Friday

Canadian central bank likely to cut the prime rate on April 21

Canadian inflation jumped more than expected in February, reversing a five-month trend. The Bank of Canada had forecast prices could drop in the absolute during the second and third quarters of this year, raising the spectre of deflation. Bank of Canada is expected to ignore the price pressures as it plans whether to cut interest rates to fresh historic lows. The next move by the Canadian central bank is likely to cut the overnight interest rate on April 21, 2009.

Monday

Renewing or Renegotiating Mortgage Interest Rates

Interest rates have been falling and you may benefit from breaking your mortgage and transferring the mortgage to another institution. Some agreements do not allow for a mortgage to be renegotiated, but most do. Financial institutions will usually allow you to pre-pay your mortgage in full, but will add a penalty. Many people shy away from renegotiating because they don't want to face any penalties But often the math works out and paying the penalty is worth it.

Your penalty charges depend on what was stated in the original mortgage agreement or in the most recent renewal agreement that you signed.

If your agreement allows you to pay off or renegotiate your mortgage early, you will normally have to pay a penalty. The penalty is generally the greater of three month's interest on your current mortgage, or the interest rate differential which can be calculated as follows.

The new bank or institution will generally cover the cost of appraisal and legal fees. They will not cover the cost of pre-payment penalties and the discharge fee but some bsnks will allow the borrower to include penalties in the new mortgage.

Another option is to blend and extend your mortgage, which often means you won't pay a penalty at all (although the savings won't be as high).

Tuesday

Canada cut its key interest rate on October 21, 2008

The Bank of Canada cut its key interest rate on Tuesday by a quarter point, less than expected, to 2.25 percent but it said it would likely have to ease credit further to combat the effects of the global financial crisis. The Canadian dollar dropped 1.38 cents US on Tuesday after the Bank of Canada moved to cut interest rates again, citing the global financial crisis and economic worries. As a result of Tuesday's move, the Bank of Canada overnight rate stands at 2.25 per cent. The Canadian central bank had joined in a half-point coordinated rate cut by the Federal Reserve, the European Central Bank and other major central banks on October 8 in an extreme action to combat the global financial crisis.
Many economists had recommended a reduction of half a point, but the more moderate cut might make it easier for Canada's big banks to follow through and pass on the lower rate to customers. Canada's private banks initially declined to pass on to consumers the full half percentage-point cut in interest rates announced by central banks around the world on Oct. 8 that affected Canadians' ability to get or afford loans for mortgages and businesses.
The bank expects average annual growth in real gross domestic product of only 0.6 per cent in both 2008 and 2009, before moving up to 3.4 per cent in 2010.

Canadian residential mortgage rates rising

Mortgage rates in Canada are heading higher as fears of inflation grips the bond markets. Canadians received more proof yesterday of the global credit crunch hitting home after this country's biggest banks began hiking their residential mortgage rates in an effort to recoup higher funding costs from their customers. In Canada this week a number of banks raised mortgage rates, and it's a matter of days before others follow. Effective Friday, a five-year mortgage increases by .35 of a percentage point to 7.2 per cent, while a three-year closed term rises by the same amount to 7.05 per cent. A one-year closed mortgage loan falls by .3 of a percentage point to 6.35 per cent. The interest rates on mortgages and other short-term borrowing are set based on the price of bonds. With lower demand for bonds and fears of inflation, rates have to rise to lure investors. Other interest rates in the economy - from consumer and car loans to mortgage rates tied to the prime rate - are affected by the Bank of Canada trend-setting rate, which is expected to fall or remain stable over the next few months at least.

Thursday

30-year mortgage rates fell, aplications rise

Mortgage rates fell again this week, sending the rate on the 30-year fixed-rate mortgage down for a fifth straight week to its lowest level since February, Freddie Mac reported. The Mortgage Bankers Association's index of applications to buy a home or refinance a loan increased 33.4 percent to 661.7 in the week ended Sept. 12, the highest level since May. any homeowners sought to take advantage of lower interest rates and refinance their mortgages last week, causing the total volume of mortgage applications filed to jump. Applications were still down 1.3% in the week ending Sept. 12, compared with the same week in 2007. The government's pledge to backstop mortgage financiers Fannie Mae and Freddie Mac and stand behind their debt provides reassurance to investors that the mortgage-backed securities issued by the companies are relatively safe investments.

AIG Insurance Clients Safe?

Americans who have put their savings into life insurance and annuity-linked pension funds were running scared as finance titans like AIG collapse.In a statement, American International Group (AIG) said it is operating normally with adequate capital and is fully capable of meeting obligations to policyholders. In the unlikely event of an insurer failure, policyholder claims would be given priority over those of other creditors, according to a statement from the National Association of Insurance Commissioners. Until the past several months, American International Group was viewed as one of the safer investment bets on Wall Street – as well as one of the top insurers on Main Street.

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