As a quick update to the rapidly changing mortgage market, I wanted to post some recent interest rate news as well as provide a bit of insight into what is going on in the market.
Usually the competition by mortgage lenders in Canada – particularly in the colder areas of the country – really heats up in the spring. That’s because most buyers are looking for homes after the snow melts. This year is no exception, and we’ve been seeing a lot of competition in the form of “Quick Close” specials and “Spring Promotions” from a variety of our lenders. Not everyone chooses to participate in this but it’s becoming more and more common.
These specials create a great opportunity for people with good credit who are looking to save some money, and also happen to be in the market to either purchase a home and obtain financing, or refinance, or even renew a mortgage that is ready to expire. Currently some of the specials that are available include a 1 year fixed-rate mortgage at 5.1%, a “quick close” special (meaning time to close of 30 or 45 days after application) of 5.39%, and perhaps the best deal going – from one lender only – is a Prime -.75% Adjustable Rate Mortgage. Since Prime is at 5.25%, that mortgage is currently priced at 4.5%! It’s been awhile since we’ve had anything decent under 5%.
Here at First Foundation we have always been focused on working with people who have good credit, have good jobs, and who own (or want to own) good quality homes. As a result, we have not been exposed at all to any of the challenges of the sub-prime mortgage market. In fact, we’ve seen an increase in our ability to obtain financing because there is always a market for qualify borrowers – and the lenders that we deal with are bending over backwards to make it easy for quality people in good situations to borrow money.
If you’ve got a mortgage up for renewal this spring, are buying a home, or looking to consolidate some debt, then give us a call. We would be happy to find you a great mortgage and save you some money.