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20 Mar

March Madness Rates & The Value of a Rate Hold.

General

Posted by:

March 2013
 
Stacey DoranMortgage Specialist

DLC – The Mortgage Hub

Phone: 604 649 6200 Fax: 604 608 3336 E-mail Website

 
DID YOU KNOW…

Now’s the perfect time of year for a free mortgage check up. With Spring on its way and interest rates still hovering near historic lows, now’s the perfect time for us to revisit your mortgage and ensure it still meets your needs. Perhaps you’ve been thinking about refinancing to consolidate debt, purchasing a rental or vacation property, or you simply want to take a vacation. Whatever your needs, I can evaluate your situation and help you determine what’s right for you.

About DLC Leasing Inc
* DLC Leasing is the leasing division within Dominion Lending Centres Inc.
* Our leasing programs provide up to 100% financing on business-related equipment.
* Leasing options include new equipment leasing; used equipment and vehicle leasing; customized solutions through vendor finance programs; and lease-backs –where the lender buys equipment from a business owner and the owner leases it back.
* Technology, heavy equipment and trailers, furniture and hospitality equipment, and manufacturing and industrial equipment are just a few examples of available leasing options.
* With access to multiple lending sources, Dominion Lending Centres’ Lease Professionals can cater to leasing deals for a variety of credit scenarios ranging from A to C credit quality.
* Because many of our Lease Professionals are also licensed mortgage agents, we can offer standard equipment leases and creatively structured solutions for seasonal, new or growing companies.
* Working with someone who is both a lease and mortgage expert enables you to even use commercial and residential mortgage and property credit line products, alone or in combination with lease financing, to help achieve the best solutions for your equipment acquisition needs.
* Our Lease Professionals can even break up large-dollar transactions into multiple leases across a number of funders to ease and simplify the approval process.

 

 
Welcome to the March issue of my monthly newsletter!

 

 

March Madness is a fitting theme this month as real estate and interest rates hit full stride heading into the spring market. Rate wars have once again resulted in new all time low mortgage offers, and interest rates seem to be receiving the majority of the press these days. Please be certain to contact me to verify the fine print as some low rate mortgage products come with restrictions that can cost much more than your interest savings in the long run.

 
 
MARKET SUMMARY
  • February job gains surprised with an increase to employment of 50,700 jobs in spite of a somewhat sluggish economy. The US also gained 236,000 jobs exceeding expectations of 165,000 jobs created.
  • After debt growth concerns have eased, the Bank of Canada is turning its eye towards growing the economy. This move would indicate that the BoC is less worried about the potential for a housing bubble.
  • Growth in China and the US will outshine Canada in 2013 according to the latest from the OECD. It’s important to note that many other countries are still playing catch up to Canada and that growth in the US and China will have positive effects on Canada’s economy.
  • China’s Government is cracking down on real estate ownership in their country. This could yield positive spillover effects to Canada’s economy, as more Chinese citizens will look to move their money abroad.
 
“MARCH MADNESS” RATE SUMMARY
 
Variable 2.60% (Prime-.40%)
3 year fixed 2.65%
5 year fixed 2.89%
10 year fixed 3.69%

*Interest rates quoted effective March 15, 2013. Rates subject to change without notice. Additional discounts may be available upon qualification.

The remainder of this month’s edition discusses the value of obtaining a rate hold and preapproval, as well as offers some helpful mortgage fraud prevention tips. Please let me know if you have any questions or feedback regarding anything outlined below.

Thanks again for your continued support and referrals!

 

 

 

Securing a rate hold is like having insurance on your mortgage rate – you no longer have to worry about mortgage rates increasing while you find your new home over the next 90-120 days. And if rates drop within that same period, so too will your preapproved rate.

For instance, if you obtain a 3.00% rate hold and then global risks subside and the economy strongly recovers over the next three to four months, that 3.00% could easily jump to 3.5% or higher. In this case, your rate hold for 3.00% would have saved you half of a percentage point, which would translate to a savings of a significant amount of money over the term of your mortgage.

 

But a rate hold means nothing if you don’t meet the lender’s qualifications. By obtaining a preapproval and a rate hold, you can be confident you have access to mortgage financing and you’ll know how much you can spend before you head out shopping for a property.

It’s important to note, however, that there is a significant difference between being preapproved and prequalified. In order to obtain a preapproval, the lender fully underwrites the deal, whereas with a prequalification only the most basic details are considered. Remember that many banks will only issue a prequalification, while mortgage brokers will ensure you’re preapproved.

As always, if you have questions about rate holds or preapprovals, or other mortgage-related questions, I’m here to help!

 

In recognition of March as Fraud Prevention Month, Canada Mortgage and Housing Corporation (CMHC) has compiled several helpful tips to protect borrowers against becoming victims of mortgage fraud.

Misrepresentation of information Mortgage fraud occurs when someone deliberately misrepresents information in order to obtain mortgage financing that would not have been granted if the truth had been known. This can include:

  • Misstating one’s position or inflating one’s income or length of service at their job
  • Misstating employment status (ie, salaried/full-time versus contract, part-time, hourly, commission-based or self-employed)
  • Misrepresenting the amount and/or source of the down payment
  • Purchasing a rental property and misrepresenting it as owner-occupied
  • Not disclosing existing mortgage and/or debt obligations
  • Misrepresenting property details or omitting information in order to inflate the property value
  • Adding co-borrowers who won’t be residing in the home and don’t intend to take responsibility for the mortgage
 

Another common form of fraud is when a con artist convinces someone with good credit to act as a “straw buyer.” A straw buyer is someone who agrees to put his or her name on a mortgage application on behalf of another person. In return for their participation, straw buyers may be offered cash or promised high returns when the property is sold. Often, straw buyers are deceived into believing that they’ll not be held responsible for the mortgage payments.

Consequences of misrepresentation Borrowers who misrepresent information and straw buyers who allow a property to be purchased in their name are committing mortgage fraud and will be responsible for any financial shortfall in the event of default. They may also be held criminally responsible for their misrepresentation.

Reporting fraud If you suspect that you or someone you know has been the victim of mortgage fraud, contact your local police department or The Canadian Anti-Fraud Centre: www.antifraudcentre-centreantifraude.ca; 1-888-495-8501; info@antifraudcentre.ca.

To find out more about mortgage fraud, visit the fraud prevention section of the Canadian Association of Accredited Mortgage Professionals (CAAMP) website:  http://mortgageconsumer.org/protect-yourself-from-real-estate-fraud.

 

 
  • We are Canada’s largest and fastest-growing mortgage brokerage!
  • We have more than 2,200 Mortgage Professionals from more than 350 locations across the country!
  • Our Mortgage Professionals are Experts in their field and many are ranked among the best nationally.
  • We work for you, not the lenders, so your best interests will always be our number one priority.
  • We have more than 100 mortgage programs, making it easy to choose the best fit for your unique situation.
  • We close loans in all 10 provinces and 3 territories.
  • We can process your mortgage in as few as 7 days.
  • We are the preferred mortgage lender for several of Canada’s top companies.
  • Dominion Lending Centres’ Mortgage Professionals are available anytime, anywhere, evenings and weekends – and we’ll even come to you!