If you want a 1 to 4 year fixed term or a variable you're qualifying at 5.44% as of yesterday morning.
This is a high rate and does put a variable, my favourite product, out of touch for some people.
If you want a 5 year fixed or higher i.e 7 or 10 year, then you qualify on the contract rate. Which today is in around the high 3's to low 4's. Big difference from the 5.44%
If you are going conventional, putting 20% or more as a down payment, the non bank lenders will allow you to still qualify for the 1-4 and variable at their discounted 3 year rate. Which is mid to low 3's today.
This with the new changes to 30 year amortization, could definitely put some people out of the market.
I'm only sure better times are ahead. Once confidence is back, a little more lax on lending policies will follow.
Tuesday, February 15, 2011
Friday, February 4, 2011
A rate hike seems imminent
Looks like the days of under 4% five years are going away soon. The bond yields keep creeping up which means the banks need to keep their margins in tact to keep profits up.
This can be a good thing for some and a not so good thing for others.
The reason it can be a good thing for some with a fixed rate is, if you're looking to make a change in respect to your mortgage, i.e refinance or move, then you can look at getting yourself booked with a rate right now for 120 days, wait for rates to go up, and then order a discharge statement at the lawyers and there you go, you've just decreased your penalty and received the lower pre rate increase interest rate!
The bad news is, if you're wanting to get in the market in the Spring, you'll have a possible harder time obtaining the home you want. Due to higher rates and the cut from a 35 year amortization to a 30 year amortization.
Best thing is to get a rate hold now for 120 days. Even if you're not 100% certain you'll be ready in that time frame.
Call me today!
This can be a good thing for some and a not so good thing for others.
The reason it can be a good thing for some with a fixed rate is, if you're looking to make a change in respect to your mortgage, i.e refinance or move, then you can look at getting yourself booked with a rate right now for 120 days, wait for rates to go up, and then order a discharge statement at the lawyers and there you go, you've just decreased your penalty and received the lower pre rate increase interest rate!
The bad news is, if you're wanting to get in the market in the Spring, you'll have a possible harder time obtaining the home you want. Due to higher rates and the cut from a 35 year amortization to a 30 year amortization.
Best thing is to get a rate hold now for 120 days. Even if you're not 100% certain you'll be ready in that time frame.
Call me today!
Pension Incomes
Just some interesting info. on the amounts paid out for pensions.
Maximum Income Security Benefits Effective January 1, 2011
CANADA PENSION PLAN (JANUARY - DECEMBER 2011)
Retirement Pension (at age 65) $960.00
Disability Pension $1,153.37
Death Benefit (maximum lump sum) $2,500.00
Survivor's Pension (under age 65) $529.09
Survivor's Pension (age 65 and over) $576.00
Children of Deceased or Disabled Contributor $218.50
Combined Pensions
Survivor\Retirement (retired at age 65) $960.00
Survivor\Disability $1,153.37
Yearly Maximum Pensionable Earnings (YMPE) for year 2011 $48,300.00
OLD AGE SECURITY PROGRAM (JANUARY – MARCH 2011)
Basic Old Age Security pension $524.23
Guaranteed Income Supplement (GIS)
Single $661.69
Spouse of non-pensioner (does not receive OAS) $661.69
Spouse of pensioner (receives an OAS pension) $436.95
Spouse of Allowance recipient $436.95
Spouse's Allowance (SPA)
Regular $961.18
Widowed $1,065.45
OAS 15% clawback commences with an income above $67,688. The full OAS pension is eliminated when a pensioner's net income is $109,607 or above.
The Spouse's Allowance stops being paid at $29,376, while the GIS stops being paid at $38,112.
Further information can be found on the Service Canada website at the attached link:
http://www.servicecanada.gc.ca/eng/isp/statistics/rates/pdf/janmar11.pdf
Maximum Income Security Benefits Effective January 1, 2011
CANADA PENSION PLAN (JANUARY - DECEMBER 2011)
Retirement Pension (at age 65) $960.00
Disability Pension $1,153.37
Death Benefit (maximum lump sum) $2,500.00
Survivor's Pension (under age 65) $529.09
Survivor's Pension (age 65 and over) $576.00
Children of Deceased or Disabled Contributor $218.50
Combined Pensions
Survivor\Retirement (retired at age 65) $960.00
Survivor\Disability $1,153.37
Yearly Maximum Pensionable Earnings (YMPE) for year 2011 $48,300.00
OLD AGE SECURITY PROGRAM (JANUARY – MARCH 2011)
Basic Old Age Security pension $524.23
Guaranteed Income Supplement (GIS)
Single $661.69
Spouse of non-pensioner (does not receive OAS) $661.69
Spouse of pensioner (receives an OAS pension) $436.95
Spouse of Allowance recipient $436.95
Spouse's Allowance (SPA)
Regular $961.18
Widowed $1,065.45
OAS 15% clawback commences with an income above $67,688. The full OAS pension is eliminated when a pensioner's net income is $109,607 or above.
The Spouse's Allowance stops being paid at $29,376, while the GIS stops being paid at $38,112.
Further information can be found on the Service Canada website at the attached link:
http://www.servicecanada.gc.ca/eng/isp/statistics/rates/pdf/janmar11.pdf
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