Canadian Mortgage Warehouse

The Harper Government Takes Prudent Action to Support the Long-Term Stability of Canada’s Housing Market

2011-01-17T08:37:00.000-05:00

The Honourable Jim Flaherty, Minister of Finance, and the Honourable Christian Paradis, Minister of Natural Resources, today announced prudent adjustments to the rules for government-backed insured mortgages to support the long-term stability of Canada’s housing market and support hard-working Canadian families saving through home ownership.

“Canada’s well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries and helped protect us from the worst of the recent global recession,” said Minister Flaherty. “The prudent measures announced today build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future.”

“The economy continues to be our Government’s top priority,” continued Minister Paradis. “Our Government will continue to take the necessary actions to ensure stability and economic certainty in Canada’s housing market.”

The new measures:

•Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent. This will significantly reduce the total interest payments Canadian families make on their mortgages, allow Canadian families to build up equity in their homes more quickly, and help Canadians pay off their mortgages before they retire.

•Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes. This will promote saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers.

•Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions and not borne by taxpayers.

Our Government’s ongoing monitoring and sound underlying supervisory regime, along with the traditionally cautious approach taken by Canadian financial institutions to mortgage lending, have allowed Canada to maintain strong and secure housing and mortgage markets.

The adjustments to the mortgage insurance guarantee framework will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.

c/o Dept of Finance

Get your PRE APPROVAL HERE!!

DID YOU KNOW...? NEW WAYS TO USE OLD PRODUCTS

2011-01-13T09:30:00.001-05:00

Have you noticed all of the "amazing new" products that will remove sticker residue, unclog the drain, prevent mildew, remove rust, degrease the garbage disposal, and get rid of toilet bowl ring? Of course there is a special product for every little situation-and none are cheap!

You can use steel wool to:

*Fill a screw hole that has become too big for the screw. Stuff the hole with steel wool and re-insert the screw.

*Make an instant pincushion. Stuff an old sock with steel wool and tie tightly for a pincushion that will keep pins and needles rust free.

*Repel kitchen pests, by placing steel wool around the pipes under the sink.

You can use nail polish remover to:

*Remove sticker residue from glass objects.

*Unstick your fingers after a superglue mishap.

*Remove marker and ink from appliances, glass, and stainless steel.

You can use olive oil to:

*Revitalize leather shoes and baseball gloves.

*Clean greasy hands.

*Repel moles in the yard. Soak a cloth in olive oil and stuff it into the mole hole. Moles hate olive oil!

You can use pop to:

*Remove grease stains from the garage floor.

*Clear a sluggish drain.

*Loosen a bolt that is rusted on.

*Remove stubborn stains from the toilet. Pour in the pop and wait one hour before scrubbing.

But before you go shopping, take note of some of the uses you can get from common products already in your home. I hope these tips come in handy very soon. And remember, if you need help with any mortgage matters, I'm just a phone call away :)

Have a great day!

JEFF LEVASSEUR

Mortgage Agent
License #M09002125

Syndicate Mortgages (License #10846)
Tel: (647) 880-4119
Toll Free Fax: (866) 726-7426
Email: jeff.levasseur@smibroker.com
Web: http://www.canadianmortgagewarehouse.com/
Blog: http://www.canadianmortgagewarehouse.blogspot.com/

SAVE TIME AND MONEY SEARCHING FOR A MORTGAGE

2011-01-11T09:30:00.005-05:00

Do you go from bank to bank, trying to find the best rate and the best product that will meet your financial goals? Are you aware that the more inquiries you have on your credit, the more it bruises your credit? On top of hurting your credit score in the process, do you really have the time to be doing all this searching and running around? We have the solution for you.

At Canadian Mortgage Warehouse (powered by Syndicate Mortgages#10846), We understand how precious your time is, and how important it is to find the best product to reach your financial goals. Let's put things into perspective for you. We understand that it may be habit to think of your bank first when needing a mortgage but let's shed a bit of light on the mortgage broker channel and why a mortgage agent will work on behalf of the borrower, and not the lender (bank).

A mortgage agent typically has access to 40+ DIFFERENT lending institutions including your local banks. What does that mean to you? You will have access to a wider range of products to choose from, rather than the limited amount of products that the banks want to sell you. (Example, does your bank offer you up to 8% cash back on your home purchase or refinance? That 8% could be handy for a downpayment or paying off some credit card bills on a refinance, even perfect for a 1st time home buyer!)

Some may think that the mortgage channel is only for individuals with bruised credit and only offer higher interest rates than what the bank may offer you. WRONG, in fact the mortgage agents can offer discounted rates that are lower than your local bank, plus because of the vast amount of lenders mortgage agents use, they can offer products for ALL credit types, excellent, good, bad, and also ugly.

Another great benefit of a mortgage agent is how simple and easy the financing process is. Here at Canadian Mortgage Warehouse we have made our process so simple for the borrower. Literally, we take one application from you, we pull one credit check, and we shop your mortgage using that one application and credit check to all our 40+ resources to find you the best product for your financial goals. You will be amazed at how much time and money we can save you. You are able to recieve up to four different quotes on your mortgage with one application. You just pick the best one. Look at what our past clients have said about our service:

"Please put us on your schedule/rotation for when the renewal is due you have made this the simplest mortgage process that I have ever gone through. We received better terms than expected. We are very impressed and would gladly recommend you to anyone." Kindest Regards, Henry and Vanessa, Newfoundland

"We are extremely pleased with the service we have received from Jeff, he has been great. He made mortgage financing a simple and efficient process; as well as taking the hassle and stress out of buying a home" Annmarie and Brad Hill, Thunder Bay, ON.

See for yourself. Fill out this quick form HERE and have up to four different quotes to choose from in as little as 24hrs. You will be happy you did. Save yourself some money, save yourself some time. Here at Canadian Mortgage Warehouse, we "Bring The Solution Home"

Phone: 1.647.880.4119
Fax: 1.866.726.7426
Email: info@canadianmortgagewarehouse.ca
Web: http://www.canadianmortgagewarehouse.com/
Web: http://www.canadasbestmortgagequotes.com/

MAKING YOUR HOME OFFICE GREENER

2011-01-10T09:20:00.001-05:00

Whether you work from home, or just have a desk in the corner, here are a few simple tips to make your home office a greener place. It may even make it a more efficient space, too!

1) Choosing to buy a laptop over a desktop computer saves a lot on your energy bill. They use almost 50% less electricity, and even less when you use them on their battery.

2) Keep your printer, fax machine, and computer shut off when you are not using them, and turn your power bar off at night. Another tip: Use an internet fax service, it's electronic, you can choose to print what you wish, and it provides more privacy and security for personal information. My faxes come directly to my email and cell phone, I can view them imediately, and print them later. It's a great service!!

3) Switch all your bills to e-bills, and subscribe to online banking. This will save a lot of trees, and make your desk a neater place.

4) Try to reduce the number of documents you print, and use both sides of the paper whenever possible. Only purchase post-consumer paper.

5) Use energy efficient bulbs for your desk lamp or office space.

6) If you are in the market for office furniture look for used. It saves the environment and your pocketbook.

7) Place a recycling bin next to your trash can. If it's there, you'll use it!

8) Purchase environmentally-friendly office supplies. From pencils made of recycled paper, to non-toxic printer cartridges, there is a wide selection available.

9) Consider purchasing your energy from companies that provide it from renewable sources

10) Take yourself off any catalog mailing lists. Usually all the products featured can be viewed and purchased online.

W: http://www.canadianmortgagewarehouse.com/
(Powered by Syndicate Mortgages #10846)
E: info@canadianmortgagewarehouse.ca
P: 647.880.4119
F: 1-866-726-7426

Paying Off Your Mortgage Faster

2011-01-04T08:35:00.001-05:00

CALL NOW TO SAVE!! 647-880-4119

What a better way to start off 2011 by putting a financial goal in place. Wouldn't it be nice to pay off that mortgage faster? Paying off your mortgage is one of the biggest financial goals of most homeowners, and retiring debt-free can certainly give your golden years a greater sense of financial freedom and stability.

Whether you're nearing retirement age or are just looking to reduce your largest debt load more quickly, here are some great tips for paying off your mortgage faster!

Principal Versus Interest

Essentially, to pay off your mortgage you have to reduce the principal owing on your property. There are really two ways you can do this without dramatically reducing your monthly budget.

Increase Your Monthly Payments

Even increasing your monthly payments by a small amount can take years off the life of your mortgage. You can also choose an accelerated plan whereby you can make weekly or biweekly payments rather than monthly. This will allow you to make a few extra payments each year. Combining these efforts can really have a surprising effect on the principal of your mortgage over a short period of time. We can complete a full Mortgage Analysis for you to help you figure out the exact numbers for your particular situation.

Reduce Your Interest Rate

If increasing your monthly payments is not an option, you can still pay off your mortgage faster by refinancing your mortgage to negotiate a lower rate. Keep your eye on the financial markets to gauge the best time to make this move, and seek out the advice of one of our Mortgage Professionals to confirm that this is a viable option for your current financial situation. If you have a good history of payment and an excellent credit score, finding a lender shouldn't be a problem.

Make A Lump Sum Payment On Your Mortgage

Another way you can decrease your mortgage principal and pay off your mortgage faster is by making a large lump sum payment. If you have come into extra money, have received a large income tax return, or just have a considerable amount of savings, this may be a wise financial decision. It will also dramatically decrease the amount of interest you will pay over the life of your mortgage and thus save you money. Just be sure your mortgage does not include a clause that will penalize you, and then determine whether it is still a good choice before going ahead.

The satisfaction a homeowner feels when they make that last mortgage payment is really unmatched by any other financial achievement, and following these simple steps can more quickly make that dream a reality.

Phone: 647-880-4119

Email: info@canadianmortgagewarehouse.ca
Website: http://www.canadianmortgagewarehouse.ca/

HAPPY HOLIDAYS

2010-12-22T09:14:00.000-05:00

We'd like to take this opportunity to wish everyone an amazing holiday season and a fun and safe new year. We are looking forward to 2011. We have a bunch of new and exciting things lined up for the new year and we're anxious to share them with you.
Thank you for your continued support over the past year as we carefully craft and prepare to expand our business model to serve you better. If it wasn't for you this would not be possible.

From all of us at Syndicate Mortgages and Canadian Mortgage Warehouse

Best Wishes and success in 2011

Understanding Interest Rates

2010-12-16T09:45:00.001-05:00

If you are in the market for a new home, or it is time to refinance your mortgage, there is no doubt you have been looking at the current interest rates. But with all the financial jargon and the multitude of lenders and mortgages available, understanding your options can really be confusing. Here are some simple facts about interest rates and how they affect your bottom line.

Do Your Research

As with any major decision, knowing the facts about the housing and financial markets before making any major decision is of vital importance to protecting your investment. Review our "Real-Time" rates daily here on our blog. In general, fixed rates will be higher, but as they don't fluctuate over the term of your loan they may be a better choice for those who need the stability of fixed payments. Also when comparing interest rates, be sure you are comparing the APR, or Annual Interest Rate, to ensure that your comparisons are on equal ground.

Also keep yourself informed on some of the riskier options that may be out there. ARMs, interest-only mortgages, no-doc loans, and 100 percent mortgages are some of the more aggressive loan types out there. They may be appropriate for your situation, but they present more risk for the lender, and are not always a wise financial choice. They also often come with higher interest rates that may return to haunt you later.

Preparing Yourself To Get The Best Rates

Understood or not, ultimately we all want to get the best interest rates for our mortgage in order to save money. No matter what type of mortgage you choose, there are a few steps you can take to get the best rates. You can reduce your rates by:

> Saving a sizable down payment

> Establishing a pattern of paying your bills on time

> Reviewing your credit report and correcting any errors

> Choose a mortgage agent to shop all the rates for you. It saves you lots of time and is good for your credit rating as mortgage agents will pull your credit once and submit the same report to thier lenders.

NOTE:

Keep in mind, rates are not everything, discuss your financial goals with your mortgage agent. Since they have access to a vast amount of different products and lenders, there may be a product with a slightly higher interst rate but puts you closer to your current financial goals. They also conduct a full mortgage analysis annually to ensure you are on the right track to meet your goals, and are prepared to discuss this with you and make changes where necessary. Armed with these simple facts, you can protect yourself from bad financial choices.Contact your mortgage agent today!!

Any questions or pre approval requests. (Pre approvals in as little as 3hrs)

Call (647)-880-4119 or email: jeff.levasseur@smibroker.com

Top Ten Home Showing Tips

2010-12-14T09:45:00.001-05:00

Showing your home is essential in the real estate business. After all, who would purchase a property sight unseen? When a potential buyer stops in, here are ten recommended tips to follow when showing your home:

Tip # 1: Welcome Your Buyers

If you are still living in the home while it's being shown, graciously greet your potential home buyers and invite them to look around. Make sure that you instruct them to take their time and to ask any questions that they may have. It may be a good idea if you leave the home for a short time to allow the buyer to look without feeling restricted by your presence. A potential buyer is less likely to voice any concerns in front of the current owner, which is why it's better to leave your buyers with one of our professional realtors and announce that you will be returning in 30 minutes. This should allow plenty of time for your potential buyer to speak candidly with the realtor.

Tip # 2: Be Flexible

Many home buyers are on a tight schedule, whether it be work, school or other commitments. Time is tough to come by, so try to be flexible about allowing potential buyers to tour your home. If you are still living on the premises, it's especially important that you be ready for last-minute visits.

Tip # 3: Climate Control

When a buyer comes into your home, they do not want to feel cold in the winter or overly stuffy in the summer. If you know that your Realtor is bringing a potential buyer to tour the home, make sure that the temperature is comfortable. Otherwise, your buyer may not spend as much time in the home as necessary in order to form an accurate opinion. The last thing you want is a buyer who's in a hurry to leave.

Tip # 4: Quick Cleaning

If you have enough time before the buyer shows up, run the vacuum over the floors and make sure that any clutter is cleaned up. A clean home appears larger, while a cluttered one gives the appearance of being too small. If you really want to impress your potential buyers, place a plate of freshly baked cookies on the dining room table. When they walk into your home, they will be greeted by the wonderful smell.

Tip # 5: Animal Control

If you have pets, remove them from the home temporarily or place them in a contained space, such as a kennel, exercise pen or carrier. This will allow buyers to tour the home without being distracted by a nervous animal which could result in a nervous buyer.

Tip # 6: Light The Way

Your home should appear open and bright, even if it's a winter day, so open the curtains and turn on the lights throughout the home. Buyers will not likely be drawn to a dark, dimly-lit house.

Tip # 7: Educate Your Buyers

When someone is looking for a home, they are looking for more than the perfect floor plan. If you have recently had the home appraised or inspected, place copies of each report on the dining room table. Purchasing a home is a big step, and buyers will be drawn to a home that has everything out on the table, so to speak.

Tip # 8: Communicate With Your Realtor

If you want certain aspects to be pointed out during the home tour, tell your Realtor what they are. For instance, good neighbors are a big plus to any home, but it's not something that potential home buyers will see simply by looking at the rooms in your house. If you have wonderful neighbors, ask your Realtor to point this out. If you live in a family-oriented neighborhood, let it be known.

Tip # 9: Curb Appeal

An important part of showing your home is making sure that the outside looks just as appealing as the inside. When a potential buyer drives up, you want them to be eager to see what else is in store for them. You can do this by paying close attention to your curb appeal. In addition to having a freshly cut lawn and properly maintained flower beds (if applicable), the outside of your home should be free of any clutter and any shrubs should be groomed.

Tip # 10: Ask For Feedback

Once the potential buyer has completed their tour, invite their feedback by placing comment cards in the home. The information provided could be potentially helpful during your next home showing, and it will make the potential buyer feel as though you value their opinion.

Paying Off Your Mortgage Faster

2010-12-13T09:45:00.001-05:00

Paying off your mortgage is one of the biggest financial goals of most homeowners, and retiring debt-free can certainly give your golden years a greater sense of financial freedom and stability. Whether you're nearing retirement age or are just looking to reduce your largest debt load more quickly, here are some great tips for paying off your mortgage faster!

Principal Versus Interest

Essentially, to pay off your mortgage you have to reduce the principal owing on your property. There are really two ways you can do this without dramatically reducing your monthly budget.

1) Increase Your Monthly Payments

Even increasing your monthly payments by a small amount can take years off the life of your mortgage. You can also choose an accelerated plan whereby you can make weekly or biweekly payments rather than monthly. This will allow you to make a few extra payments each year. Combining these efforts can really have a surprising effect on the principal of your mortgage over a short period of time. Ask me to help you figure out the exact numbers for your particular situation. Contact Me!

2) Reduce Your Interest Rate

If increasing your monthly payments is not an option, you can still pay off your mortgage faster by refinancing your mortgage to negotiate a lower rate. Keep your eye on the financial markets to gauge the best time to make this move, and request the advice of our experienced mortgage professionals on our network.to confirm that this is a viable option for your current financial situation.

3) Make A Lump Sum Payment On Your Mortgage

For more infomration and a full mortgage analysis feel free to contact me directly:

Direct: 1-647-880-4119

Email: jeff.levasseur@smibroker.com

Ottawa cutting the maximum term of mortgages or increasing the minimum down payment?

2010-12-13T07:26:00.000-05:00

Ottawa is talking to the banks about putting new measures to curb the rise in consumer debt into the next federal budget.

Deputy finance minister Michael Horgan has broached the topic in prebudget consultations with executives from Bay Street firms, sources say.

Several bankers have told him that they would support further federal moves to cool the mortgage market, including cutting the maximum term of mortgages or increasing the minimum down payment.

Gordon Nixon, chief executive officer of the Royal Bank of Canada, the country’s largest bank, said he’s not hitting the panic button yet over concerns that some consumers may not be able to repay their loans.

But “we are clearly at the limit,” he said in an interview. “You do not want significant growth in consumer debt.”

Low interest rates have enticed Canadians to borrow more than they could afford to otherwise, and many are now stretched. The average debt per household, including mortgage and credit card debt, hit a high this year of $96,100, as the debt-to-income ratio climbed to a record 146 per cent. Job losses or higher interest rates down the line could push consumers past their limit, resulting in bankruptcies and damage to the economy.

“We’re not in dangerous territory right now,” Mr. Nixon said. “But taking steps to ensure that we don’t have a problem is a prudent thing to do.”

Bankers shared similar fears with Ottawa in the fall of 2009. In February, 2010, Finance Minister Jim Flaherty announced measures designed to make it harder for mortgage borrowers to get in over their head.

The rules, which took effect on April 19, require borrowers to qualify for a five-year fixed-rate mortgage even if they choose a lower-rate variable mortgage. Previously, home buyers had only to qualify for the higher of either a three-year fixed-rate or variable-rate mortgage.

When refinancing, homeowners may now withdraw only 90 per cent of the value of the property, down from 95 per cent. And for purchase of homes that the owner is not going to occupy, the minimum down payment rose to 20 per cent from 5 per cent for insured mortgages, a move designed to rein in speculative buying.

But those measures fell short of what some bankers wanted, namely a significant reduction in the maximum allowable amortization period of new mortgages or a substantial broad increase in down payments.

Mr. Horgan, who has been Mr. Flaherty’s No. 2 since late 2009, is talking to lenders about whether more needs to be done.

“We constantly monitor the housing market and personal debt levels, as we all clearly don’t want households overextended,” said Annette Robertson, a spokeswoman for the Finance Minister. “That means talking to banks and ensuring they have appropriate and prudent lending practices. We have taken actions to ensure banks lend money responsibly and will again if needed.”

The Bank of Canada has kept borrowing rates low for longer than many economists had expected, offering a steady stream of fuel to the housing market and consumer spending. But in the process, Canadian debt levels have risen to troubling heights.

And for most Canadians, this is the time of year credit card debt increases due to spending on Christmas gifts and holiday travel. The typical shopper plans to spend $624 on gifts this year, about $100 less than last year, an RBC survey found.

The average Canadian has a debt of $25,000, excluding mortgage loans, according to credit agency TransUnion.

Fairfax Financial CEO Prem Watsa is among the influential voices pointing to the impact of soaring debt on the broader economy. Not only are Canadians overleveraged, primarily with mortgage debt, low interest rates have prompted speculative buying that is artificially inflating housing prices, he said.

According to the latest statistics from the Bank of Canada, the banks were holding $497-billion in residential mortgage loans to consumers in September, up from $468-billion in January.

The central bank noted last week that the amount of both mortgages and credit card loans that were in arrears in the second quarter of 2010 was well above the level before the financial crisis.

PricewaterhouseCoopers LLP is releasing a survey on Monday of households with an annual income above $100,000 that found that 64 per cent of respondents plan to cut their debt load in the next 12 months, even though most said they think that they could responsibly take on more debt.

“Canadians, while they believe they’ve got continued good access to credit through their banking relationships, actually plan to lower their debt over the coming year,” said John MacKinlay of PricewaterhouseCoopers. “In particular, they’re considering deferring large-ticket items.”

The risk is that if consumers act relatively quickly to reduce their debt load, that could cause fresh headaches in some parts of the economy, illustrating the conundrum that policy makers face as they balance the economic benefits of consumer spending with the risks.

For instance, the survey found that 64 per cent of people would be willing to delay buying a new car to pay down their debts, which could mean new pain for an already battered automotive sector.

When the financial crisis erupted, Ottawa put pressure on the banks to keep up the flow of credit to support the economy. The government put temporary emergency programs in place that made it easier for the banks to lend, especially in the form of mortgages.

FIVE WAYS TO MAKE YOUR HOME BRIGHT, COZY AND CHEERFUL

2010-12-10T09:30:00.000-05:00

Fix it up:

The light fixtures in your home are a reflection of your personal style and taste. Adding additional fixtures or replacing ones that aren't your favorites can be a fun and creative way to brighten up your home!

Candlescaping:

Candles are generally inexpensive and are extremely versatile (be careful also!). Adding various candle arrangements to different rooms in your home will instantly create an atmosphere of warmth and style. Get creative! You might also favor scented candles to add a pleasant aroma to different areas of the house.

Mirror, mirror, on the wall:

Mirrors not only create the illusion that your rooms are even more spacious than they already are, they also reflect light! Make your house warm and cozy by adding a few inexpensive mirrors in hallways, bedrooms, and living spaces.

Light the way:

Lighting isn't just for indoor decorating-it's also a valuable addition to the exterior of your home. Line your walkway or garden with cost-efficient solar light fixtures (no electricity needed!) to create a brilliant nighttime landscape outside your home

Open up: During daytime hours, keep your draperies and window coverings open. This will not only allow your home to absorb heat, but it will brighten up the winter days that you spend at home.

Happy Holidays from Canadian Mortgage Warehouse and Syndicate Mortgages

What Makes Up Youe Credit Score?

2010-12-09T09:30:00.002-05:00

If there ever was a good time for Canadians to keep track of their credit scores, it is now. It could save you $1,000 a year in interest payments. Back in 1956, an engineer and a mathematician invented a process for analyzing business data to help institutions make sound financial decisions. The system, FICO, quickly evolved into scoring criteria that are used by lenders and investors to calculate the risk associated with loaning money to companies and individuals.

How Your Credit Score is Calculated

Here's how it works:

Financial information is gathered about your past and present borrowing habits.

That is then calculated into a number or credit score.

As proper repayments are made according to the terms of your credit card, line of credit or loan, your score will increase. Scores range from 300 to 900; the higher the number, the easier it is to obtain credit. The average Canadian credit score is 720.

If you keep up with your payments, you can get larger lines of credit at lower interest rates because you have proven you are trustworthy. If you have never had a credit card or loan, you will have no credit score and will have a difficult time obtaining credit, and will pay higher interest rates on that credit.

The Five Pieces that Make Up Your Credit Score

There are five factors that determine your credit score, according to Fico.ca:

1. Payment history. This, the most important, makes up 35 percent of your score. It is based on how well you pay off debt. Every time you miss a payment or pay late, your score will be lowered. Any major financial events in your life such as declaring bankruptcy, collection actions, past due payments and foreclosures will be kept in your payment history and drive down your score for five to seven years.

2. Total debt. This accounts for 30 percent of your total credit score. This is the total of all credit card debt, loans, mortgages and other debts you may have and the length of time it takes you to pay it all off. If you pay all your credit card debts right away, this will decrease your total debt and improve your score. The ratio between the amount of credit available compared with the amount you have used will also affect your credit score.

3. Credit history. Credit history accounts for about 15 percent of your credit score, and is determined by the length of time you have used credit services -- how long you have had credit cards, loans and mortgages. If you close an old credit card you have kept up to date for years, then start a new card, this shortens your history and can be detrimental to your credit score.

4. Recent credit is the amount a lender agrees to let you borrow, and is worth 10 percent of your total score. After you are approved for a credit card or loan, the recent credit number will be adjusted.

5. Credit types make up the last 10 percent of your credit score. Large loans such as mortgages have a greater impact on this number than a line of credit or a credit card.

Who Keeps Track of Your Credit Score and Why You Should Care

In Canada, there are three main credit bureaus: Equifax Canada, TransUnion Canada, and Northern Credit Bureaus. Each credit bureau may have a different score depending on the files they have on you. In Canada, free credit reports are always available if you request them. Understand that frequent requests won't affect your score as it does in other countries.

Credit scores are generally grouped together into six levels or brackets. Each level pays a certain interest rate. That's why it can pay to know your credit score. Let's say your credit score is 659. This means you fall into the 620-659 bracket. If you can increase your score by just one point, it will become 660. That puts you in the 660-699 bracket, which could save you hundreds a year in interest!

"The downturn has affected credit scores of some but not others," explains Scott Hannah, president and chief executive officer of the Credit Counselling Society. "Those with a loss of income are relying more on credit. The trend we are seeing is that consumers are more in debt, which is having an adverse impact on credit scores."

Hannah recommends that people check their gross debt service ratio -- the percentage of your annual debt commitments to your annual income. "Consumers should not exceed 20 percent. If they have a monthly income of $3,000, they should only be paying $600 to service debts. This way there is no decline in your savings rate. Then you're not leaving yourself open to emergencies."

Nadim Abdo, vice president of Equifax Consulting Solutions, writes, "Unfortunately, our latest data illustrates that the weaker economy coupled with high personal debt levels has led to an increasing number of consumers declaring bankruptcy." This has a long-term effect on credit scores and will lower the Canadian average credit score. Written by Christopher Ibotrain

Take the time to evaluate your current debt load. If you are a homeowner, it might be wise to refinance your current mortgage to get rid of this debt which will dramatically increase your credit score AND save you money. Give us a call and we will provide you with a full mortgage analysis, review your current debt load and find you a solution to save some money.

If you currently do not own a home, ny suggestion would be to look into a line of credit to possibly consolidate your dredit card debt. Lots of time you will have the option to make interest only payments on the Line of Credit which will benefit your cash flow, save you interest, and increase your credit score.

Call or email us for your analysis today!!

Direct Phone:647-880-4119

Email: info@canadianmortgagewarehouse.ca

Written by Christopher Ibotrain.

How To REduce Your Gas Consumption

2010-12-08T09:30:00.001-05:00

With gas prices still high and the economy slow to recover, tips on how to reduce the amount of gas we need for our vehicles is always helpful. These tips can also help you do your part to make our planet a greener place!

Walk and bike whenever possible. Most of us use the car to make trips that are within a mile or two of home. By walking or riding a bike you'll use less gas, and get more active at the same time.

Combine trips that require the car. We all have dry cleaning to pick up and groceries to buy, but by planning ahead and doing all your weekly errands in one trip can you can save both gas and time.

Clean out your car. By reducing the clutter in your backseat and trunk you eliminate the extra gas needed to haul them around wherever you go.

Be sure your tires are properly inflated. This simple measure can make a big difference in the amount of unnecessary gas you consume.

Follow your vehicle's maintenance schedule. Not only is this good for your car, it will keep it running at its maximum efficiency and reduce the air pollution it produces.

If you are in the market for a new vehicle, consider a hybrid model. Most automakers now offer a hybrid model, and this option is getting more affordable as well.

HAPPY SAVING!!

Buying A Home With Past Credit Problems

2010-12-07T09:30:00.004-05:00

Buying a home can be both exciting and stressful but, for those with past credit problems, the process may also seem intimidating. The good news is that many lenders have adapted to the idea that many hopeful homeowners simply need a second chance, which means that past credit problems no longer have to define your future.

Credit Blemishes

When life unexpectedly takes a turn for the worst, it's not always possible to come out without a few bumps and bruises. Every day, people are faced with late or missed credit card payments, mortgage foreclosures, bankruptcy proceedings, auto repossessions and even civil judgments that will affect their credit reports for years to come. Whether it's from a job loss, injury or just a simple case of temporary hardship, credit blemishes are often a part of life. The good news is that they no longer have to prevent you from becoming a homeowner.

Give Yourself A Little Credit

After experiencing a credit problem, most lenders will want to see an attempt to rebuild your credit through a steady payment history with a new account. This can be accomplished by applying for a credit card and maintaining a responsible use of the account. If you aren't approved for an unsecured card, you can always apply for a secured credit card (Get Secured Cred Card Here!!). Either will rebuild your credit over time and will help to show lenders that your past credit problems are just that - in the past.

Clean Up Your Credit Report

Before applying for a home loan, make sure that you check your credit report from each of the two major credit reporting agencies. Every 12 months, consumers can request a free copy of their credit report from Equifax and TransUnion. If anything is incorrect or found to be inaccurate, filing a dispute with the credit reporting agency can help to get the information corrected before speaking with a lender.

When you apply for a home loan, the lender will access your credit report for the purpose of determining your creditworthiness. In an effort to ensure that you have the best possible chance at being approved for the loan at the best possible interest rates, making sure that your credit report is accurate is a must.

Save Up For A Down Payment

Some homebuyers often qualify for a mortgage with down payments as low as five percent, but those with past credit problems may be required to shell out up to 30 percent or more for a down payment on their new home. A buyer who pays a larger down payment obviously has more vested interest in the home and may, thereby, be less likely to default on a loan. If you have past credit problems, check with your Mortgage Agent about specific down payment requirements and start saving!

Creative Financing Options

If you've exhausted all of your conventional efforts and are still turning up empty, don't give up just yet. Alternative financing is an option that many homebuyers use to purchase a home. Your Mortgage Agent can provide you with details regarding any lease purchase and/or owner financing properties, which may require no credit check, no bank qualifying, a low down payment and competitive interest rate options.

Check With Us Today. Let's Bring You a Solution!!

Home Selling Checklist: The Process Of Selling Your Home

2010-12-01T08:44:00.000-05:00

Once you've made the decision to sell your home, it's time to think about what comes next. Throughout the process, you may find it beneficial to have a checklist to help guide you in some very important choices that you will be making in the coming months.

Pick a Realtor from our professional network.

A Realtor will enlist to help with the selling of your home. Just like no two homes are alike, no two owners are alike and each has different needs when it comes to real estate. The Realtor that you ultimately choose will have access to your home at any time and will be responsible for marketing it to potential buyers. As such, you should choose someone that you feel comfortable with and will do the best job for you. We offer a FREE refferal service and we often suggest using on of our prefferred Realtors on our network. They come with a vast amount of experience and have proven results with not only selling homes but with customser service also. Click HERE if you would like to speak to one of our Realtors on our network.

Get An Appraisal

When you list your home for sale, an appraisal will be helpful for a number of reasons. As the seller, you may wonder why you would need to have your home appraised, but here's why. As a seller, you do not want to overprice or underprice your home. If you ask for more than the home is actually worth, lenders won't likely grant a loan even if you find a willing buyer. If you price your home too low, not only will you be taking away from your own profit, but potential buyers may wonder what's wrong with the home that it's priced so far below market value.

With an appraisal, you can list your home with the knowledge that you need to make sure the price is right. If you want to advertise the home as a bargain, sell it somewhat below the appraised value. Buyers will know they are getting instant equity in the home and lenders will see the investment as a good one.

Decide How Quickly You Want To Sell

Believe it or not, your schedule could greatly impact the listing price. If you are in a hurry to sell, you may find that a competitive asking price will help you to get the cash you need much quicker. A price that reflects the higher end of a buyer's budget may take some time to sell, so consider these factors when pricing your home.

Make Time For Updates

Your Realtor will offer advice as to what needs updated, repaired or changed in order to maximize the potential of your home. When a buyer looks at a house, they are looking at the cost, needed repairs or upgrades, decor, etc. Once your Realtor does a walkthrough and explains what, if anything, needs updated, you will commit to an asking price and sign the listing agreement.

Field Offers

As a seller, you are probably already aware that potential buyers will make an offer that could be less than your actual asking price. Most Realtors will tell you that if you ask for 'X' amount of dollars, buyers will probably offer you 'X' amount instead. That's the name of the game, and you will need to decide whether or not your asking price is firm or negotiable. If an offer comes your way, you will always have the option of making a counteroffer or simply rejecting the deal altogether.

As a final thought to the negotiation process, keep in mind that buyers typically offer less than they are actually willing to pay initially. Most offers are time sensitive, which means you may have to make some quick decisions. Of course, your Realtor will be there to guide you through every step of the process and will likely offer an opinion as to whether or not an offer is fair in the current market.

Close The Deal

When the price is right and you agree to the terms, it's time to say goodbye to your former home and hello to a brand new life. Letting go is not always easy, but moving forward is a part of life.

Happy Selling!! **Ask about our referred network of Realtos HERE**

Home Buying Checklist: The Process Of Buying Your New Home

2010-11-22T10:26:00.001-05:00

Once you've made the decision to buy a home, it's time to start thinking about what comes next. Every buyer needs a checklist that will guide them through the process of searching for the perfect home, evaluating their choices and making a purchase.

Learn The Lingo

When you set out to buy a new home, you will need to familiarize yourself with various real estate terms, conduct research on the market value of homes in the area in which you intend to shop and learn the art of negotiation. This information will help as you browse homes, talk with realtors and get further into the buying process. (Ask about our FREE Refferal Service)

Check Your Credit Report

Obtain a copy of your credit report from each of the major credit reporting agencies - Equifax, and TransUnion. You should make this request before you begin looking at homes in order to allow yourself enough time to identify and dispute any inaccuracies in your credit file(s). When you approach a broker, you will need to make sure that everything is correct and up-to-date.

Get Pre-Approved

Getting a pre approval is important! Knowing what you can afford beforehand will save you both time and disappointment in looking at homes that do not fit your budget.
Get your pre approval in as little as 24 h rs here

Make An Offer

Once you find the perfect home, make an offer that's less than you are actually willing to pay. (Ask your realtor for advice as market conditions vary). This way, the seller can make a counteroffer that would hopefully still be within your budget. It's important to familiarize yourself with the art of negotiation so that can learn how to get the best deal without insulting the seller. If you have not yet been pre-approved, make sure that your offer is contingent upon your being able to obtain the necessary financing.

Obtain A Loan

Once you and the seller agree on a purchase price, you may be required to provide an earnest money deposit that will secure the home as you obtain a loan (if applicable). Depending on the situation you may require a home inspection and appraisal for the property in connection with your loan application. In most cases, you will know within 24 hours whether or not your application is approved, but the actual closing will not occur until the inspection and appraisal are complete.

Get Moving

Now that the papers are signed and you have the keys to your new home, it's time to get moving - literally. Remember to decorate your new home and add all of those special touches that reflect your personality. After all, a house is only a house until you make it a home.

**Need a lawyer or realtor????*** Try our FREE referral service. Only the best professionals are on our network

Great Tips on Decorating "Green" For Christmas

2010-11-19T10:29:00.000-05:00

Christmas is probably one of the easiest times of the year to use environmentally friendly decorating ideas, and given the more traditional decorating trends for the season and the ever increasing need for all of us to contribute to making the planet a greener place, it's never been easier. Here a few great ways to decorate your home for the holidays and be greener at the same time!

Green Tree Ideas

Replace your old Christmas lights with new LED lights. They use less electricity and last longer than the older ones.

If you put up a real tree for the holidays consider using a live tree that you can plant after the holidays, be sure you recycle your tree after the season is over.

Only purchase your real tree from a Christmas tree farm or retailer who purchases from farms. Never cut down a tree in a conservation area or in a public park.

Consider using an artificial tree; be sure that it is recyclable and not made using any harmful materials or chemicals.

Use natural products to decorate your tree. Berries, popcorn, and other food items that don't perish quickly are a great addition to any tree.

Green Home Décor Ideas

Use real garland and other decorations from nature. Most garden centers are great places to get environmentally friendly decorations for the Christmas season.

Be sure that you purchase decorations and other holiday items that are durable and reusable year after year. If you want holiday tableware avoid the paper kind, and choose products that are made locally using environmentally friendly products.

If you put lights on the exterior of your home you may want to reduce the number of hours you turn them on each day, and only have them on when someone is home.

For wrapping and gift giving, use papers and materials that are reusable and recyclable.

These are just a few ideas that you can use to make your Christmas more green while still keeping the holiday spirit alive! .

www.canadianmortgagewarehouse.ca

2010-11-16T09:30:00.013-05:00

5 Reasons You May Consider Refinancing:

Invest Your Money

You've come up with an excellent business idea but no one wants to take a risk on your proposal. But if you're really sure about the profitability of your business plan then why not take the risk yourself? Refinance your home mortgage and use the cash you'll get from it to start your own business. You may be the sole investor in the business and it may mean shouldering all the risk alone, but when your business starts generating income, it also means getting to solely enjoy the business's profits.

Obtain Lower Rates

Desperate times call for desperate measures and this could've been the reason why you've taken out a loan with outrageous rates in the past. But you don't need to continue suffering when there's an option to refinance.

Refinancing allows you to get rid of your old loan and replace it with a better one. Your mortgage refinance loan can come with lower rates, allowing you to breathe more easily because you know you can pay on time and maybe set aside a little more for savings. Ask me for our current rate specials!!

Pay for Your Children's Education

Education is a costly matter. What you're earning each month may not be enough, but if you refinance your home mortgage, you'll have the means to put your child through college. After that, you'll just have to wait a few years more and then you can reap your rewards when your child returns the favour by paying off the loan. The table will turn and this time, your child will be the one supporting you!

Are You Prepared for Emergencies?

There's no way to know when emergencies can take place but things tend to get better when you're prepared for them.

Pay Off Your Debts

Revolving debts are the worst and credit cards are the classic source for them. Refinancing your home mortgage to pay off such debts will be a smart decision on your part. These debts charge exorbitant interest rates but do not offer anything in return as they're not investments able to earn profit. They only serve to eat more and more of your income especially when you can't pay on time.

Worse, having too many of such debts can only spell bad things for your credit rating. If you want to free yourself from debts, credit cards should be the first thing to go. Take the first step to financial freedom by refinancing your home mortgage.

Think Green for Your Home Renovations

2010-11-15T08:38:00.000-05:00

Home renovations can be a great way to improve your home's value or make your home a more liveable place. Within the construction industry environmentally-friendly products are fast becoming a popular way for homeowners to make their home a greener place, as well as to do their part for the planet. Here are a few tips you can use to think green in your home renovation projects.

If you are repainting a room or your entire home, use an environmentally-friendly latex paint. Be sure you let leftover paints dry before disposing of them, and do not dump paint down the drain.

Consider wood floors rather than carpets, and be sure they are from a forest source that uses renewable lumber practices. Wood floors are also easier to clean and require less maintenance.

Be sure you replace all appliances and hot water heaters with energy efficient models.

Consider installing solar panels or other renewable energy sources rather than replacing existing ones. There are government programs that can make this an affordable option.

For bathroom and kitchen renovations, install plumbing fixtures that will reduce your water consumption, such as dual-flush toilets and low-flow showerheads.

Consider using materials and supplies that have been salvaged. There are a growing number of businesses that offer used construction materials, and supporting them means less waste in our landfills. It can also be an affordable way to get quality materials or antique fittings for your home.

For larger jobs, be sure you hire a contractor who is familiar with green renovations and can offer you green products at a fair price. Asking for references is always a good idea.

Pictures of your family trips, special events, and everyday life will bring your newsletter stories to life. Once you have chosen a picture, place it close to the story. Be sure to place the caption of the image near the image.

2010-10-08T14:32:00.002-04:00

Act Fast on this great deal!! Contact me for more details

Jeff Levasseur
Mortgage Agent #M09002125
Syndicate Mortgages #10846
Tel: (647) 880-4119
Fax:(866) 726-7426
Email: jeff.levasseur@smibroker.com
Web: www.canadianmortgagewarehouse.ca

Buying A Home. Who You Need on Your Team

2010-10-08T11:15:00.000-04:00

http://www.canadianmortgagewarehouse.ca/

A real estate agent will help you find a home, write an Offer of Purchase, negotiate a purchase on your behalf and save you a considerable amount of time. When choosing an agent you want to work with, ask for references and don’t be afraid to ask questions or call your local real estate association for advice.Buying a home is one of the biggest decisions you’ll ever make. So when it comes time to signing on the dotted line, make sure you don’t make that decision alone.

To help you put together the right team of professionals, Canada Mortgage and Housing Corporation (CMHC) offers the following who’s-who list of experts and what they should bring to the table:

•Real Estate Agent. Among other services, your real estate agent will help you find a home, write an Offer of Purchase, negotiate a purchase on your behalf and save you a considerable amount of time. When choosing the agent you want to work with, ask for references and don’t be afraid to ask questions or call your local real estate association for advice.

•Mortgage Agent. Many different institutions lend money for mortgages, including banks, trust companies, credit unions, caisses populaires, pension funds, insurance companies and finance companies. It can be a good idea to shop around and speak with more than one lender before you make a choice. Many Canadians choose to work with a mortgage broker because they don't represent any specific lending institution. They can often help you find a mortgage with terms and rates that will suit your needs. Contact Jeff Today

•Lawyer (or notary in Quebec). You need a lawyer to protect your legal interests by ensuring the property is clear of liens, charges or clean-up orders and will review all contracts before you sign them and your Offer (or Agreement) to Purchase. Make sure your lawyer or notary is a licensed, full-time professional who understands the local laws and regulations, has reasonable fees and can explain things to you in plain language.

•Home inspector. When considering purchasing a home, you should consider hiring a knowledgeable and professional home inspector. He or she will be able to tell you if something in the home is not functioning properly, what repairs need to be done and whether there may have been any problems in the past.

•Insurance broker. An insurance broker can help you purchase property and mortgage life insurance. Your lender can also help you with mortgage life insurance.

•Appraiser. An appraiser will assess your property’s worth and help protect you from paying too much.

•Land surveyor. You may need the services of a land surveyor if the seller does not have a current Survey or Certificate of Location.

•Builder/Contractor. If you are buying a newly constructed home, you will have to hire a builder or contractor. If the house you are buying needs renovations, you may also require a builder or contractor.

**Information provided buy CMHC

For home financing contact:

Jeff Levasseur

Mortgage Agent #M09002125
Syndicate Mortgages #10846
Tel: (647) 880-4119
Fax:(866) 726-7426
Email: jeff.levasseur@smibroker.com
Web: www.canadianmortgagewarehouse.ca

BANK OF CANADA RAISES RATES

2010-09-08T09:25:00.001-04:00

OTTAWA- The Bank of Canada raised its benchmark interest rate Wednesday by 25 basis points to 1%, arguing financial conditions remain “exceptionally stimulative” even in the face of a slowing -- but still growing -- economy.

In its accompanying statement, the central bank acknowledged the economic recovery in Canada would be “slightly more gradual” than envisaged it its most-recent economic outlook, due to sluggish private-sector demand in the United States. However, it said domestic demand was expected to be “solid” and business investment to advance “strongly” -- powered by “accommodative” credit conditions that have eased further in recent weeks due to sharp declines in bond yields.

Banks price loans, such as mortgages, based on yields for relatively safe government debt.

The statement provided no suggestion the central bank was set to keep rates on hold for an indefinite period, as some analysts now expect.

“As a result of monetary policy measures taken since April, financial conditions in Canada have tightened modestly but remain exceptionally stimulative,” the central bank said.

For instance, consumers continue to take out loans at a steady pace, with central bank data suggesting household credit expanded at an annualized 7.1% pace for the three-month period ended July 31.

The Bank of Canada said future hikes in its key lending rate, up 75 basis points in the past three months, “would need to be carefully considered in light of the unusual uncertainty surrounding the outlook.”

This decision may come as a bit of a surprise for traders, who have been largely divided as to which way Mark Carney, the central bank governor, and his colleagues would lean toward in the face of slower than anticipated economic growth. Markets had priced in a roughly 60% chance of a rate hike, and those odds increased over the past week from a less than 50-50 chance based on better-than-expected manufacturing and labour data in the United States.

Canadian GDP expanded 2% annualized in the second quarter, well below the central bank’s forecast of 3%. However, analysts have said the economy was stronger than the headline print indicated, as final domestic demand advanced at a robust pace (3.5%). Plus, much of the drag in the second-quarter was from so-called “import leakage,” in which gains in imports -- as firms acquired productivity-enhancing equipment at the fastest pace since 2005 -- outstripped exports.

Of the GDP results, the Bank of Canada said economic activity “was slightly softer” than expected, “although consumption and investment have evolved largely as anticipated.”

The central bank is likely pleased at the turnaround in business investment, which it has argued is required for the recovery to maintain momentum once consumer spending tapers off. Plus, investment from firms in productivity-enhancing technology is required to ensure future growth.

The bank said the Canadian recovery would be “slightly more gradual than it had projected in July … largely reflecting a weak profile for U.S. activity.” The U.S. Federal Reserve has said it was prepared to take further action if required to stoke the recovery, although officials at the powerful central bank are unsure such measures are required.

The Bank of Canada said inflation -- which the central bank aims through rate decisions to hit and maintain a 2% level -- has been “broadly in line” with expectations and “its dynamics are essentially unchanged.”

In terms of the global picture, it said the recovery is proceeding “but remains uneven, balancing strong activity in emerging market economies with weak growth in some advanced countries.” As for the United States, the world’s biggest economy and Canada’s biggest trading partner, the central bank said the recovery in private demand is “being held back by high unemployment and recent indicators suggest a more muted recovery in the near term.”

Economists have scaled back growth expectations for both Canada and the United States, although at the same time boosting the forecast for Europe as its major economies are advancing better than expected following the sovereign debt crisis in the spring.

The central bank is scheduled to provide an updated economic outlook next month, two days following its next rate decision on Oct. 19. Previously, the central bank had forecast 3.5% economic growth this year, followed by 2.9% expansion in 2011. The output gap -- a rough measure of the amount of excess capacity in the economy -- is expected to close by the end of 2011.

Read more: http://www.financialpost.com/news/Bank+Canada+raises+rates/3493842/story.html#ixzz0ywYjqRUM

TORONTO HOME PRICES UNLIKELY TO DROP

2010-09-04T22:53:00.004-04:00

TORONTO, ONTARIO--(Sept. 3, 2010) - Greater Toronto REALTORS® reported 6,232 sales through the Multiple Listing Service® (MLS®) in August 2010.

his represented a 22 per cent decrease compared to the 8,035 sales recorded during the same period in 2009. New listings decreased by one per cent year-over-year to 10,488.

"The prospect of interest rate hikes and new mortgage lending rules prompted some households to purchase a home sooner than they otherwise would have this year. The result has been a larger than normal dip in sales over the summer months. With this said, it is important to recognize that sales on the year were eight per cent higher than in 2009," said Toronto Real Estate Board President Bill Johnston.

The average price for August transactions was $411,012 – up six per cent compared to the average of $387,921 reported in August 2009.

"Market conditions have remained tight enough to support higher home prices in comparison to last year. Under current mortgage lending standards, a household earning the average income in the GTA can comfortably afford the mortgage payments on an average priced home. Market conditions and the affordability picture would have to change dramatically before a sustained drop in the average selling price would take place," said Jason Mercer, TREB's Senior Manager of Market Analysis.

Source: Toronto Real Estate Board

No Increase In Mortgage Costs Seen For September

2010-09-02T22:19:00.002-04:00

Homeowners aren’t likely to face higher mortgage costs for at least the next month and some banks may even follow the Bank of Montreal in cutting new fixed-rate loans to compete for a dwindling number of buyers, specialists said.

According to a panel of mortgage experts polled by online mortgage rate comparison site RateSupermarket.ca, both fixed-rate and floating rate mortgages will remain unchanged for the next 30 to 45 days.

The sharper-than-expected slowdown in the Canadian economy, which grew at 2% in the second quarter, coupled with a barrage of negative data from the U.S., has increased the likelihood that Bank of Canada governor Mark Carney will pause in his interest rate tightening cycle in September.

Before Tuesday’s gross domestic product numbers, most economists had expected one more increase before rates went on hold.

“Two weeks ago I would have said an increase of 0.25% for sure but with the recent weakening in the economy, governor Carney may be best to sit pat,” said Elisseos Iriotakis, president of Safebridge Financial.

On the fixed-rate side the trend may still be towards further cuts.

The Bank of Montreal on Wednesday said it was offering a special 3.59% rate on a five-year fixed mortgage, down from 3.79%. It was the 12th consecutive fixed-rate cut since April.

Banks typically fund their fixed-rate mortgage lending from instruments tied to bond yields. The ongoing rally in the fixed-income market has meant they are able to continue to offer lower rates, even though the Bank of Canada has raised its prime rate twice since June.

“Deflation worries and risk aversion are holding yields down in the bond market,” panel member Larry MacDonald, an economist and author said.

Banks are also chasing fewer buyers, with housing sales dropping 6.8% in July from the previous month and 30% from the previous year, according to the latest statistics from the Canadian Real Estate Association.

That said, the other Big Five banks may not be as keen as BMO to shave rates to the bone.

“Big banks are not fond of overt rate competition,” Robert McLister, editor of leading mortgage news publication Canadian Mortgage Trends said in an e-mail. “Unless bankers dramatically alter their business models, a public rate battle among the Big 5 is unlikely.”

More likely is some kind of selective discounting, McLister said. That may entail giving their sales force greater discretion in offering special rates to clients.

“TD, RBC and BMO have each taken a stab at no-haggle pricing in the past, but only for a limited time,” he said. “As soon as margins compressed or their market share objectives were met they quickly went back to the tried and true.”

McLister said BMO may be pushing to win back market share, which slipped to 9.3% in the third quarter from 9.8% the same period last year, according to the banks quarterly presentation slides.

By Sharon Singleton, QMI Agency

Bank of Canada increases overnight rate target to 3/4 per cent

2010-07-20T10:23:00.000-04:00

OTTAWA, July 20 /CNW Telbec/ - The Bank of Canada today announced that it is raising its target for the overnight rate by one-quarter of one percentage point to 3/4 per cent. The Bank Rate is correspondingly 1 per cent and the deposit rate is 1/2 per cent.

The global economic recovery is proceeding but is not yet self-sustaining. Greater emphasis on balance sheet repair by households, banks, and governments in a number of advanced economies is expected to temper the pace of global growth relative to the Bank's outlook in its April Monetary Policy Report (MPR). While the policy response to the European sovereign debt crisis has reduced the risk of an adverse outcome and increased the prospect of sustainable long term growth, it is expected to slow the global recovery over the projection horizon. In the United States, private demand is picking up but remains uneven.

Economic activity in Canada is unfolding largely as expected, led by government and consumer spending. Housing activity is declining markedly from high levels, consistent with the Bank's view that policy stimulus resulted in household expenditures being brought forward into late 2009 and early 2010. While employment growth has resumed, business investment appears to be held back by global uncertainties and has yet to recover from its sharp contraction during the recession.

The Bank expects the economic recovery in Canada to be more gradual than it had projected in its April MPR, with growth of 3.5 per cent in 2010, 2.9 per cent in 2011, and 2.2 per cent in 2012. This revision reflects a slightly weaker profile for global economic growth and more modest consumption growth in Canada. The Bank anticipates that business investment and net exports will make a relatively larger contribution to growth.

Inflation in Canada has been broadly in line with the Bank's April projection. While the Bank now expects the economy to return to full capacity at the end of 2011, two quarters later than had been anticipated in April, the underlying dynamics for inflation are little changed. Both total CPI and core inflation are expected to remain near 2 per cent throughout the projection period. The Bank will look through the transitory effects on inflation of changes to provincial indirect taxes.

Reflecting all of these factors, the Bank has decided to raise the target for the overnight rate to 3/4 per cent. This decision leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in light of the significant excess supply in Canada, the strength of domestic spending, and the uneven global recovery.

Given the considerable uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weighed carefully against domestic and global economic developments.

Information note:

A full update of the Bank's outlook for the economy and inflation, including risks to the projection, will be published in the MPR on 22 July 2010. The next scheduled date for announcing the overnight rate target is 8 September 2010.