Mortgage & Market News - February 22nd, 2011 - Edmonton and Calgary


First Foundation Best Rates to open the week:

Term Mortgage Rates

1 Year 2.85%
2 Year 3.20%
3 Year 3.35%
4 Year 3.89%
5 Year 3.84%
7 Year 4.94%
10 Year 5.15%

ARM / Variable 2.20%
Line of Credit 3.50%

Qualifying Rate 5.44%
Prime Rate 3.00%

Market News

The S&P/TSX composite index plunged 159.43 points, or 1.1. per cent, to 13,963.68, while the TSX Venture Exchange was down 60.13 points, or 2.5 per cent, to 2,363.55 .

Canada’s benchmark stock exchange and currency were lower Tuesday, insecure because of Libyan instability and lackluster Canadian retail sales figures.

The dollar was lower, losing 0.73 of a cent, to 100.92 cents US due to a poor Canadian retail sales report from December, which showed sales fell 0.2 per cent from the year before. Sales figures are expected to continue to wane as interest rates slowly rise over the coming months, dampening consumer appetite.

Mortgage News

Total Canadian debt per consumer, excluding mortgages, increased to $25,709 in 2010’s fourth quarter. Credit card debt actually declined by almost three per cent from the previous period, according to a TransUnion report but increases were noted in regards to lines of credit ( LOC), revolving loans and installment loans.

Merix Financial, a Canadian “non-bank” mortgage lenders, says if Canadians continue to rely more on lines of credit to finance purchases, the mortgage market could be effected in an indirect way.

“With less competition in home equity credit lines moving forward and activity moving from profitable credit cards to these less profitable credit lines, there will be incentive for the banks to increase the interest rates they charge on home equity lines of credit in the future,” Merix’s director of operations Andrew Kuyper told

Not surprisingly, lines of credit are currently the second largest consumer debt carried by Canadians after mortgages. They accounted for 42 per cent of outstanding debt by the end of 2010. Residents of Alberta and Ontario are the largest users of line of credit products, making up more than 57 per cent of all outstanding LOC debt.

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…

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