First Foundation Best Rates to Open the Week:
1 Year 2.64%
2 Year 3.40%
3 Year 3.60%
4 Year 3.79%
5 Year 4.04%
7 Year 5.04%
10 Year 5.24%
ARM / Variable 2.20%
Line of Credit 3.50%
Qualifying Rate 5.69%
Stocks on Monday rebounded from earlier lows but nonetheless ended the day with steep losses after Standard & Poor’s cut its credit rating outlook for the United States – the first step in a potential rating cut down the road.
The Dow Jones industrial average closed at 12,201.59, down 140.24 points or 1.1 per cent. The broader S&P 500 closed at 1305.14, down 14.54 points or 1.1 per cent. In Canada, the S&P/TSX composite index closed at 13,702.33, down 96.79 points or 0.7 per cent.
While markets were already looking weak on Monday morning following concerns about a possible debt default by Greece and after China raised the deposit reserve ratio for its banks, the S&P report on its U.S. credit rating sealed the deal. In its report, S&P raised concerns about the ability of policy makers to tackle the country’s massive deficits and rising debt, and therefore cut its outlook to “negative” from “stable.” It added that there was a one-in-three chance that the U.S. triple-A credit rating would be cut in two years’ time.
The Department of Finance change eliminating government backing of insurance for Home Equity Lines Of Credit took affect, starting Monday, April 17th, 2011. Most major lenders did not have their HELOC’s insured by CMHC so this should not have a significant effect on the average consumer.
Noteworthy new mortgage product – One of our lenders, National Bank, is now offering a special program via mortgage brokers that waives the Interest Rate Differential (IRD) mortgage penalties for early terminations caused by military relocation abroad. All lenders allow mortgage holders to transfer their mortgage to as new property within the province and often within Canada but if a borrower must move abroad, the mortgage must be broken and the pre-payment penalties become due. The IRD penalties can be extremely costly so this move by National Bank could save our Canadian troops several thousands of dollars in mortgage fees.