December 2008 - Mortgage Update for Buyers
December 1, 2008
By Jaime Briggs
www.BriggsOnHomes.com
Thanks to Stephanie Ostash with the Mortgage Centre for this update.
Mortgage Lending Looking Up With all the bad news we have been encountering in the investment markets, for home owners and buyers the Lending markets are looking encouraging. In fairly recent days we have seen the drop of prime and now, according to Mark Carney (Bank of Canada Chief) a rate cut is expected on Dec.09 and perhaps even a further drop in rates before the end of the year. Although we did go through a short period recently where rates were on the climb, the average Canadians mortgage rate is currently 5.41% compared to last years average of 5.56%. Other interesting statistics: * Number of Canadian home owners who have mortgages: 5,250,000 * Percentage of Canadian home owners who got a new mortgage in the last year: 29% * Increase in percentage of Canadian lending volumes from last year: 7.7% Most popular mortgage terms with borrowers:
1-3 years: 29% 4-5 years: 61% over 5 years: 10% Compared to last year, many borrowers are actually taking shorter terms. The 5 year term seemed to be the most favorable with purcahsers, but moving forward we are starting to see many 4 year rate specials. For those who are looking ar a 5 year fixed rate you may find extra value in giving up that extra year. Current 5 year fixed: 5.65 - 5.79% Current 4 year fixed: starting at 5.34% |
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| Mortgage Terms: Term:The length of time the interest rate is fixed. It also indicates when the principal balance becomes due and payable to lender, at which time most borrowers will re-new or re-finance. Amortization Period: The actual number of years it will take to pay back your mortgage loan. In Canada the maximum allowable is currently 35 years. |
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Stephanie Ostash The Mortgage Centre Express Mortgage Services
PH 250.861.4222
CE 250.801.6467
FX 250.861.4322 |
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