First Foundation’s Best Rates to Open the Week:
1 Year 2.60%
2 Year 3.04%
3 Year 2.90%
4 Year 3.54%
5 Year 3.59%
7 Year 4.85%
10 Year 5.19%
ARM / Variable 2.30%
Line of Credit 3.50%
Qualifying Rate 5.39%
The S&P/TSX composite index closed up 69.95 points today, or 0.6 percent, at 12,234.51
The index was firing on all three of its most powerful sectoral cylinders — materials, up 0.8 percent; energy, up 0.7 percent; and financials, 0.3 percent higher.
Toronto’s main stock index actually finished the day at its highest closing level since April as gold prices hit a record high and other commodity prices gained, lifted by expectations that the U.S. Federal Reserve will keep its policies steady at a meeting this week.
Speaking of …
Today, The Financial Post published one of the best articles I have come across that describes how banks manage mortgages in Canada. There’s alot of misinformation out there, I have found, particularly from American articles and blogs, trying to dissect and compare the Canadian mortgage system to theirs and why ours stayed relatively afloat amidst the crisis. There seems to be alot of confusion but in my humble opinion, this article gets it right. Here’s a couple of experts:
To understand the housing market and where it’s headed, it’s a good idea to take a close look at the big banks.
In the late 1990s, the banks added a new twist to the business model as they began securitizing, or selling, parts of their mortgage portfolio. Securitization had caught on in the United States long before it did in Canada, so lenders in this country were merely copying what they saw as a proven and highly beneficial innovation.
Essentially, it allowed them to swap baskets of loans that might not pay off for several decades for a lump sum. In other words, instant liquidity, which they could then use to make more home loans. The result: The market for Canada Mortgage Bonds has jumped to nearly $300-billion today from less than $10-billion in 2001.
Definitely worth the read to get a clear picture of where the Canadian mortgage market is now and why.
Contact one of our Licensed Mortgage Brokers for any questions you may have about the current mortgage market conditions or today’s best rates.