Market and Mortgage News - Week of Sep. 05, 2011 - Edmonton & Calgary


First Foundation’s Best Rates to Open the Week:

Term Rates
1 Year 2.64%
2 Year 2.99%
3 Year 3.09%
4 Year 3.09%
5 Year 3.39%
7 Year 4.69%
10 Year 4.89%

ARM / Variable 2.43%
Qualifying Rate 5.39%
Prime Rate 3.00%

Market News

Concerns about European fiscal issues continued to weigh on markets, as Toronto’s main stock market index fell to a one-week low on Tuesday. The Toronto Stock Exchange’s S&P/TSX composite index ended the session down 83.87 points, or 0.67 per cent, at 12,518.54. A dismal US payroll report revealing that there were no net new jobs created in August and continuing economic woes in Europe made for a rough start to the week.

What does this mean to you?

As Canada is a trading nation, not having nations that are able to purchase our goods due to fiscal woes can be a bit of a problem. We are certainly more secure than any other part of the world so I’m not ringing any alarm bells here but there really is no time like the present to start that three month contingency fund so you can pay your mortgage in case your income is jeopardized by further economic downturn. Start small to build your confidence if you’ve never had a savings plan before – you’ll be surprised by how addictive it can be to add to your nest-egg!

Why not start by using this free budget spreadsheet provided in this great article by Squawkfox?

Mortgage News

The markets are predicting a zero percent probability for the Bank of Canada hiking the key lending rate on Tuesday and in addition, Canadian economists have cut in half their rate hike expectations for 2013. Originally, experts had predicted the Bank of Canada’s key lending rate would increase from 1% to 2.5% by the end of next year – now the projection has been reduced to 1.75%.

What does this mean to you?

These predictions now put prime at a max of 3.75% at the end of 2014 and even at that point, increases are expected to be moderate. If you’ve got a good variable rate mortgage, it looks like you won’t have to worry about locking into a fixed rate until this time next year.

As the company’s first employee, Jennifer has been a Licensed Mortgage Associate since 2004, but her current role is not focused on mortgages. She is the resident blog writer and…

Learn more about Jennifer Rochford