Get the Scoop on Rising Mortgage Rates!

By schmidt • June 22nd, 2009

In changing times it’s important to have people we can call on for advice we can trust!  At SCHMIDT, one of those people is Randy Jamieson. Randy is a mortgage broker with The Mortgage Centre in Calgary.  He has worked with many of our clients here in Edmonton and regularly provides our team of REALTORS with the latest in mortgage news.  I received information below from Randy today and with his permission am sharing it with you.  It looks like mortgage rates are on the rise.  If you’re a first-time buyer this could impact your purchasing power.  If you are a homeowner with a mortgage coming up for renwal, you’ll want to consider your options carefully. If you have a question about your current or future mortgage needs, Randy is a great guy to call on!  You can email him at randyemail@telus.net.

Click here for the latest Rate Sheet
3 – 5 year Fixed Rates have taken a jump from their all-time lows!  Shorter term fixed and Variable Rates remain very low.  We are also finding the “investor” and “first time buyer” activity very active right now.

Quick Summary
Prime is now at 2.25% with a few lenders offering Prime + .60% now and one lender offering Prime + .40%, perhaps making the Variable a viable option to consider again.  Fixed Rates continue to have real value, add stability and take the risk out of a fast rising Prime (in the next couple years).
 
Variable Rates
-Most lenders still have a Variables spread of Prime + .60% (2.85%)
-As mentioned, one lender is now offering Prime + .40% (2.65%)
 
Fixed Rates
-With rates just above All-Time Lows, the ability to fix and lock in your payment and rate (around 4%) for a number of years is very attractive
-Locking into a short term rate (ex. 1 – 2 yr) can usually be a risky option (except a Convertible 1 yr maybe), with the risk of a much higher rate when renewal comes up
-The medium term options (4 – 5 yr) still have the best combination of stability and great rate
 
Mortgage Products (a Review of Past Interesting Announcements)
-CMHC is still offering the Investor 90% – 95% Rental financing over 35 years (though this is tightening up with Genworth canceling their rental program)
-Genworth has tightened up on other qualifying criteria as well (beacon scores of 700 required to go 5% down), though CMHC is still a bit more flexible
-one lender is still able to offer a true 100% mortgage (zero down) at a very competitive rate (approx. 5.85%) considering
 
I hope this information helps you out.

Randy Jamieson
Mortgage Broker
 
THE MORTGAGE CENTRE – Jamieson Mortgage Professionals
PH:  (800) 811-9871  Toll Free Phone
FX:  (866) 200-1272  Toll Free Fax
randyemail@telus.net
Contributed by Kathy Schmidt, Broker Owner of Schmidt Realty Group Inc with special thanks to Randy Jamieson of The Mortgage Group!
 
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