motgage update and current rates

Good morning,Our current rates are attached for your convenience, have a great week!

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Mike, Donna & Elyse Hybrid Mortgages

If homebuyers are on the fence about where interest rates are heading, they may want to consider a hybrid mortgage, one of the latest products offered by the financial community that can help you hedge your interest rate bets.

With a hybrid mortgage, part of the money owed is locked in at a long-term fixed rate, while another portion is open and takes advantage of a lower, but variable, rate that rises and falls with interest rate volatility.

Over the long haul, assuming interest rates fluctuate up and down, the client will likely pay more than if you simply kept an open, variable-rate mortgage but less than if you simply locked in to a long-term, fixed-rate mortgage.

The concept is similar to dollar-cost averaging, where you buy a little bit of an investment each month, paying more some months and less others, with the result that the total cost of the investment averages out to less than it would be if you simply bought it in a lump sum. In the case of hybrid mortgages, your interest rate payments fluctuate, so you need to be able to weather some stormy waters before signing up. If you or your clients would like more information on this type of product, simply give us a call

  No Change to Rates at BoC MeetingThe Bank of Canada left it’s key lending rate at 0.25%…as expected, leaving the prime lending rate for most lenders at 2.25% Not much changed from their last announcement in October.  In its statement today it said:

  • “The target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010.”
  • “The overall risks to (the Bank of Canada’s) inflation projection are tilted slightly to the downside.”

The Bank of Canada’s main focus, of course, is controlling inflation.  There has been nowhere near enough strong economic news for them to raise rates—nor will there be for a while yet.  The next BoC interest rate meeting is January 19, 2010   Canada's Building Plans Surge 18%   The value of Canadian building permits hit a 13-month high in October in another sign the Canadian economy is emerging from recession. The value of building permits jumped 18 per cent to $6.1-billion, Statistics Canada said Monday. Economists polled by Bloomberg had expected a 1-per-cent increase in the month. The increase comes amid growing evidence Canada is climbing out of recession. The economy eked out an expansion in the third quarter of this year, while churning out 79,000 new jobs last month, two reports showed last week. This is further confirmation that maybe the Canadian economy is recovering at an even faster pace than what's expected in the market.
   

  Michael Hatch AMP Mortgage Agent   Lic#M08008114 Integrity Financing – Dominion Lending Centres 704-2197 Riverside Dr, Ottawa , ON K1H 7X3  Tel: 613.203.2030     Fax: 613.424.2111   Toll Free: 1.877.238.3521 Email: info@ottawashometeam.com

Stephen George

Stephen George

REALTOR®
CENTURY 21 Action Power Team Ltd., Brokerage*
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