Dominion Lending Centres Funds Corp. is a mortgage brokerage and leasing company that specializes in the Toronto market. Our goal is to find the best mortgage for our clients and to simplify the mortgage process.
INDUSTRY NEWS
Mortgage Deals Galore
It may have been one of the most dismal economic years on record, but it wasn’t all bad news, especially for homeowners who saw more affordable mortgage rates.
And another good year for mortgage holders is on the way.
Low rates over the next 12 months mean now is the perfect time to tidy up finances, said Mary MacInnis, a consultant with Mortgage Intelligence.
“It’s going to be a good year for people who want to consolidate their debts, do renovations on their home or want to buy because the rates are going to be attractive,” MacInnis told QMI in a telephone interview from Dartmouth, N.S.
MacInnis expects any mortgage rate increases next year to be minor, in the neighbourhood of one-tenth to one-quarter of a percentage point for fixed packages.
“The market can’t stand any kind of huge rate jump,” she said.
Since January 2009, variable rates have gone from a prime lending rate of 3.50% plus 1% to as low as a new prime of 2.25% minus 0.1% for five-year terms.
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I Got The Mortgage Blues
February 5, 2010
The Bank of Canada has slashed interest rates to the lowest level in Canadian history and I'm about to get killed on my mortgage rate.
What the @#$%^!
There's no doubt I'm living on free money right now. My variable mortgage is 0.85% below prime, bringing it in at 2.15% today.
Life is good.
But my time on easy street is up. I need to renew.
Since times are so tough in the banking sector, access to credit is tougher and more expensive.
So, with the Bank of Canada's overnight rate at 1%, and prime for banks at 3%, if I wanted a variable mortgage again, I'd pay prime plus 0.8% -- or almost double the interest rate I pay now.
But I should cut the banks some slack, right? These are tough times after the meltdown south of the border and losses on bad loans here in Canada. It's a crisis in the industry.
MADE $8 MILLION A DAY
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Homeowners Play It Safe, Mortgage Study Finds
February 5, 2010
Canadians are playing it safe when it comes to mortgages, according to a new survey on lenders and borrowers released Thursday.
The Canadian Association of Accredited Mortgage Professionals found the overwhelming majority, 86% to be exact, of homebuyers in this country chose a fixed-rate mortgage in 2009. However that proportion did fall late in the year as variable rates became more attractive thanks to all-time low interest rates.
Fixed-rate loans are considered less risky than variable-rate terms since payments are set for a specific number of years.
First-time homeowners were among the most prudent, borrowing less than they could afford, as their gross debt service ratio came in below allowable limits.
“This new research shows that Canadians are assessing their abilities and vulnerabilities," said Jim Murphy, AMP, president and chief executive of CAAMP.
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