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Rate Increase- effective Tomorrow
http://www.hawthornevillager.com/phpbb/viewtopic.php?f=3&t=5354		 Page 1 of 2
Author:  hockeymortgagemom [ Tue Jan 16, 2007 3:51 pm ]
Post subject:  Rate Increase- effective Tomorrow
Hi Everyone;

Just a friendly heads up that rates are increasing effective tomorrow by 20bps on the 5yr fixed rates.

If anyone was considering working with me for their financing, please please please send me a PM before midnight tonight with your "real name". That's all I need to hold today's rates for you for you to be protected from tomorrow's increase.

My current builder rate is held for 18months, and is currently 5.2%, for a 5yr fixed rate....tomorrow it is 5.40%.

I do NOT have to do a full application or a credit bureau to hold this rate for you. This makes me able to backdate your rate to today's date in our systems when/if you choose to finance with me. (If rates are higher when/if you choose to work with me, and I don't have this in my system, I cannot backdate the rate).

This also works for people who are looking to purchase a home or look at their existing financing within the next 4 months, which is the longest I can hold this rate for WITHOUT a purchase agreement, or full application.

The 5.2% quoted is for builder mortgages, closing over 4 months, up to 18months from now....you can PM me for a current quote of a rate for something you would like to pursue within 4months.

Any questions as always you can PM, email, or call me.
Talk with you soon!
Jessica :)

jessica.boyes@scotiabank.com
905-330-0427 direct
Author:  williamb [ Tue Jan 16, 2007 8:05 pm ]
Post subject: 
rates are not going anywhere but down.....The U.S. housing market downturn has yet to have had its impact felt, 2007 is where i feel the worst of the downturn wil be felt , thereby lowering rates will be inevitable.
jmho

and from the heads of the banks.............


“Policymakers are clearly upbeat on the economy’s growth prospects and are in no hurry to reduce rates to address the recent soft patch,” said Sal Guatieri, senior economist at the Bank of Montreal.

But there’s general agreement that rate reductions are in the offing.

“Our expectation is that continued weakness going forward will prod the bank to lower rates later this year,” said Andrew Gretzinger, economic analyst at MFC Global Investment Management in Toronto.

Scotiabank’s Kwan said there could be multiple cuts.

“We think there’s a good possibility of a rate cut coming as early as the second quarter of this year, specifically the May meeting, and perhaps again in the third and fourth quarter as well,” she said.

The bank will offer a broader picture of its thoughts and expectations on Thursday, when it issues a Monetary Policy Report update.
Author:  hockeymortgagemom [ Tue Jan 16, 2007 8:32 pm ]
Post subject: 
William, though I do respect your opinion, you are speaking of prime rate in the quotes you referenced.

And I do agree with those quotes. I also agree with the speculation that fixed rates over the course of the year will have some decreases, effectively with some discounted rates in the high 4% range again....(4.7-5%). However, that is speculation.

I think that your advice is highly irresponsible to homeowners reading your posts, with 18months to wait and see if your predictions come true.

What I feel strongly about in my professional career, is providing solid advice and OPTIONS to my clients. I think it is absolutely CRUCIAL not to close doors of any kind when it comes to financial decisions. Keep all options available to you open as much as possible. Life changes, finances change, economys change.....if you close doors, you have nothing to fall back on and you are then at the mercy of the bank.

Knowledge and options are empowerment.

There are NO fees to do a rate hold. You are not obligated to that bank in any way, shape or form....you can cancel that rate hold or application at any point in time. So why not???

By doing an application now for a rate hold for the lowest rate over your 18month building period, you are keeping the fixed rate option open for you, should rates end up increasing until your closing date. I have had clients as of late closing with a 5 year fixed rate of 4.45% from the rate hold I did for them last year. My my how things can change, with effective tomorrow the discounted builder rate goes up to 5.4%.

If you had the option of deciding between taking right now a 4.45% 5 year fixed rate, or a variable rate, currently approx 5.25%, which would you take?? I'm not saying either choice is right or wrong, and sometimes even a bit of both is warranted....but don't close the door to something.

Jessica :)

PS: William, I am very, very curious to know...and you can PM me, if you choose to satisfy my extreme nosiness....did you visit your bank and do a rate cap during your builder period until closing....or are you so keen on the variable that you closed that door, playing russian roulette with your finances that you are the mercy of whatever the rates are 3 months prior to your closing?? Not a personal jab, honestly....I just think it is important for people to know the facts and options available.
Author:  williamb [ Tue Jan 16, 2007 9:11 pm ]
Post subject: 
Institution ............ 6 mnth 1 yr 2 yr 3 yr 4 yr 5 yr

ING Direct 16 JAN --- 4.99 4.99 5.15 5.15 5.09
CanadianTire 16 JAN --- 4.99 4.99 5.15 5.15 5.05

President's Choice Finan 6.67 5.89 5.35 5.20 5.20 5.10

and you will notice the 5 yr all lower than any big bank,

mypoint is there are alot of other financial institution out there and RATES ARE NEGOTIABLE
Author:  hockeymortgagemom [ Tue Jan 16, 2007 9:16 pm ]
Post subject: 
rates ARE negotiable....but not when you are a 1/2 percent or more apart.

Jessica :)
Author:  williamb [ Tue Jan 16, 2007 9:40 pm ]
Post subject: 
jessica
you do give great advice on this board for sure, and have better rates than most....so keep up the goodwork...and we do not know for sure what will happen in the future, but my gut tells me we have yet to feel the effects of the downturn in the U.S. housing market, and again, there is nothing wrong with locking in here...again you do great work here to educate everyone.....i just might give you a call i the future

william
Author:  hockeymortgagemom [ Tue Jan 16, 2007 9:50 pm ]
Post subject: 
William,

Like I've often said, I think we agree on things often....and this is one of those things.

I do appreciate the compliment.....and nothing would flatter me more than a call from you to help arrange your financing! :P

Cheers
Jessica :)
Author:  BuildingHomes.ca [ Tue Jan 16, 2007 11:27 pm ]
Post subject: 
Mortgage rates on the rise:

CBC
http://www.cbc.ca/money/story/2007/01/16/mortgages.html

So they are going up.. and what Jessica says makes sense. There is no obligation.

When I set up my first mortgage 5 years ago I was set with 2 different banks. I terminated the agreement with one a week before closing.
Author:  csb101 [ Wed Jan 17, 2007 8:28 am ]
Post subject: 
Ummmm, we're with Royal and the rates JUST went up. Not much mind you and I am still hoping they'll go back down like they keep saying.
Author:  hockeymortgagemom [ Wed Jan 17, 2007 9:24 am ]
Post subject: 
when rates go up, they typically go up across all the banks.

Jessica :)
Author:  BuildingHomes.ca [ Wed Jan 17, 2007 10:27 am ]
Post subject: 
Yes, it's called collusion.. much like gas prices :)
Author:  themasons [ Wed Jan 17, 2007 12:36 pm ]
Post subject: 
Jessica, maybe you can confirm this, but it is my experiance that when a bank "holds" a builders rate for you for 18mths, they also gaurentee that if the 5yr fixed rate goes below your "held" rate, you will get the lower rate. if so, does this not make the prediction that rates will go up in 18mths inconsequential?

also, you are only pre-approved with these builder rates, so you don't have to sign on the dotted line until shortly before you close. so what's the disatvantage to holding a pre-approved rate for 18mths? i don't see any... like jessica says, it's irresponsible to advise purchasers not to hold a builders rate for 18 mths (from jessica or RBC or whoever). our mortgage broker (who is also a friend) advised us to get pre-approved with RBC back in Aug 05, when we signed our purchase agreement) and then when closing time came, he would see what the best rate he could get was. and... the rate went up considerably, so we are now with RBC and have a great rate :) very good advice he gave imho. and i think jessica is saying the same thing.

just my 2 cents.
Author:  hockeymortgagemom [ Wed Jan 17, 2007 12:40 pm ]
Post subject: 
You've got it, same advice. Your rate goes down automatically within your cap if the rate decreases.

Jessica
Author:  williamb [ Mon Mar 05, 2007 7:53 pm ]
Post subject: 
just heard Royal Bank is lowering rates 10 basis points....

more to follow for sure....as the U.S. ENTERS A DEPRESSION
:wink:
Author:  christinajackson [ Tue Mar 06, 2007 2:39 pm ]
Post subject: 
TD Canada Trust has also dropped rates by 10 basis points effective March 6.
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