First Foundation Best Rates To Open the Week:
1 Year 2.64%
2 Year 2.99%
3 Year 3.39%
4 Year 3.39%
5 Year 3.44%
7 Year 4.69%
10 Year 4.99%
ARM / Variable 2.20%
Line of Credit 3.50%
Prime Rate 3.00%
Qualifying Rate 5.39%
The Toronto stock market closed the session Tuesday with a triple-digit decline that erased gains of 141-points posted on Monday and ended a five-day rally.
The S&P/TSX composite index lost 152.9 points to 12,530, with all sectors in the red.
Why should this matter to you? Although downturns in the stock market can be bad for making money, it can be a great for borrowing money. Check out the article Got a secure job and lots of debt? Rejoice on the CTV website for a good explanation as to why a slow money market can be beneficial if you’re repaying debt.
Also – thinking of taking the variable rate on your new mortgage? Experts think that you may have a 2 year window of historically low variable rates before they start to move upwards due to an announcement by the US Federal Reserve last week that it will not be raising short-term rates until mid-2013.
Consider taking the 3 Yr variable option and topping up your regular monthly payment during the first two years or until rates move significantly upward. You’ll make great headway on reducing your principle before rates start to rise and the three year term is up, you’ll be able to move into a 5 Yr fixed rate term upon renewal to ride out a more inflationary period.
For more mortgage strategy – contact one of our licensed mortgage broker today!
Most lenders dropped their fixed rates late last week, putting our lowest 5 year fixed term now at an amazing 3.44%. Complete our handy and secure online mortgage application to apply for a 90 – 120 day hold on most of our fixed rate options.
Meanwhile, the Canadian Real Estate Association ( CREA) revised its forecast for national home resales for the rest of the year, showing growth in the Canada’s real estate rather than decline. CREA cited stronger than expected sales and higher prices in the second quarter and said that sales should be slightly above 2010, up from an earlier forecast that called for a one per cent dip in sales.
Why should this matter to you? CREA said it now expects the national average home price will rise 7.2 per cent in 2011, to $363,500. The previous estimate in May was $352,500. While interest rate are getting lower, house prices are inching upwards, something to keep in mind when planning the timing of your next property purchase.
Have a look at CREA’s full press release here.