Thursday, May 31, 2012
CHMC Mortgage Survey
Are you curious to know what is going on in the mortgage industry? Check out these interesting statistics from the annual survey produced from CMHC.
71%: of consumers researched mortgages online, up from 65% in 2011. (Somewhere down the line we'll see this number in the 90% range.)
86%: of those researching mortgages online search for interest rates. (Rates are the #1 mortgage research topic. No surprise.)
61%: of buyers reported receiving explanations about the impact of mortgage prepayments and the effect of rising interest rates during their information and mortgage selection process.
71%: of consumers who went online used a mortgage calculator.
20%: of first-time buyers used social media (up from just 3% in 2010).
43%: of social media users used the interactive nature of social media either to solicit opinions or to provide answers to other mortgage consumers.
27%: of mortgage consumers used a mortgage broker to arrange their mortgage in 2012, vs. 23% in 2011.
46%: of consumers were contacted by their mortgage professional after their mortgage closed.
77%: of those using the services of a broker said they were satisfied with their experience.
1.9: the average number of brokers that recent buyers contacted in order to learn about mortgage options.
2.7: the average number of lenders that recent buyers contacted in order to learn about mortgage options.
34: the average age of a first-time homebuyer. The survey also found that first-time buyers have a:
higher incidence of using a mortgage broker
lower level of lender loyalty
higher incidence of using online resources for mortgage research
higher use of social media, and
greater time spent doing mortgage research.
5 weeks: the average time mortgage consumers spend doing research before making a mortgage product decision. First-time buyers spend an average of eight weeks.
We find these facts very interesting and can shed some light on the growth of the mortgage industry. For more detail and further information check out the full survey at
http://www.canadianmortgagetrends.com/files/cmhc-mortgage-consumer-survey-2012-1.pdf
Thursday, May 17, 2012
How To Get The Best Mortgage Rate
This Week's HOT TOPIC ... Getting the best rate
Ever wonder how your neighbour, colleague, or close friend got such a good deal on their new mortgage rate? Why they seem to get this fantastic rate that seems so much lower than any quote you got from your own bank?
In today's newsletter we are going to discuss five key ideas that you can implement in your mortgage shopping strategy so that you come out a winner. Yes, you too can have access to the lowest rates around.
Step 1 - Use a mortgage broker
No shock here. As most of our readers know we strongly believe in using your mortgage broker as a trusted resource. A broker can help reduce your time and energy spent on shopping for the best rate. Brokers have a good understanding of who is offering what rate. They can point out the lowest possible rate in the industry, but more importantly can also point out the pros and cons to that product.
Step 2 - Have good credit
It is important to have good credit when applying for a mortgage. Most of the posted rates you find on the internet are contingent on the applicant having a reasonable credit score. When applicants have less than average credit you may be looking at a higher rate than necessary.
Step 3 - Have a larger mortgage
When you approach a bank for a mortgage who do you think has a better chance at getting a better rate on the loan? Obviously a borrower with $300,000 in debt will fare better than some one looking to borrow $50,000. Bankers are more willing to let commissions go to lower your rate if they still stand to make money off your deal.
Step 4 - Bring additional business to the bank
Hey, if you are willing to roll your entire financial wealth over to one institution, then go for it. Just be aware that you are putting all your eggs in one basket. Some bankers, especially those on commission, will drool over the idea of gaining several accounts with one easy transaction, and may entice the representative to lower rates for you.
Step 5 - Use a smaller lender
Sometimes when approaching a big bank there is little to no wiggle room. They know that they can sit back and some one else is bound to walk through that door later today. Smaller lenders may not react the way. They deal on smaller volumes and tend to not want to let business go. Smaller lenders tend to give their best food forward upfront, no haggling necessary.
So if you are in the market for a new mortgage, and struggling to find the best rate out there, hopefully these five steps will help you. And if all else fails, come talk to us. Maybe what you are looking for isn't the cheapest product, but rather the best product for your financial needs.
Ever wonder how your neighbour, colleague, or close friend got such a good deal on their new mortgage rate? Why they seem to get this fantastic rate that seems so much lower than any quote you got from your own bank?
In today's newsletter we are going to discuss five key ideas that you can implement in your mortgage shopping strategy so that you come out a winner. Yes, you too can have access to the lowest rates around.
Step 1 - Use a mortgage broker
No shock here. As most of our readers know we strongly believe in using your mortgage broker as a trusted resource. A broker can help reduce your time and energy spent on shopping for the best rate. Brokers have a good understanding of who is offering what rate. They can point out the lowest possible rate in the industry, but more importantly can also point out the pros and cons to that product.
Step 2 - Have good credit
It is important to have good credit when applying for a mortgage. Most of the posted rates you find on the internet are contingent on the applicant having a reasonable credit score. When applicants have less than average credit you may be looking at a higher rate than necessary.
Step 3 - Have a larger mortgage
When you approach a bank for a mortgage who do you think has a better chance at getting a better rate on the loan? Obviously a borrower with $300,000 in debt will fare better than some one looking to borrow $50,000. Bankers are more willing to let commissions go to lower your rate if they still stand to make money off your deal.
Step 4 - Bring additional business to the bank
Hey, if you are willing to roll your entire financial wealth over to one institution, then go for it. Just be aware that you are putting all your eggs in one basket. Some bankers, especially those on commission, will drool over the idea of gaining several accounts with one easy transaction, and may entice the representative to lower rates for you.
Step 5 - Use a smaller lender
Sometimes when approaching a big bank there is little to no wiggle room. They know that they can sit back and some one else is bound to walk through that door later today. Smaller lenders may not react the way. They deal on smaller volumes and tend to not want to let business go. Smaller lenders tend to give their best food forward upfront, no haggling necessary.
So if you are in the market for a new mortgage, and struggling to find the best rate out there, hopefully these five steps will help you. And if all else fails, come talk to us. Maybe what you are looking for isn't the cheapest product, but rather the best product for your financial needs.
Tuesday, May 1, 2012
Interest Rate Outlook
Bank of Canada suggests rate hikes soon…
April 18, 2012 — Steve Garganis
The Bank of Canada met on Tuesday for the 3rd of eight scheduled meetings this year to set the Bank of Canada rate. As expected, no rate change… But there were some language in the meeting that suggests we could start to see rates go up as early as this year…. here’s an article from The Star and reaction from TD’s Economist.
In short, it appears and I stress the word, appears, as though Mr. Carney is warning us that interest rates will be rising sometime soon. But Economists aren’t buying into that warning just yet. There is still too much uncertainly about the global, U.S. and domestic economies. And as long as these concerns persist, then interest rates should remain low.
SOME EXPERTS DON’T BELIEVE ALL THE DOOM AND GLOOM STORIES
It’s true, we have experienced emergency interest rates for over 3 years now… It’s no secret the govt is concerned about Canadians get into too much debt. You’ve heard the figures. The average Canadians owes around 153% of their annual income…. concerns about a housing bubble. But how does that compare with the rest of the world? Here’s an interesting article from the Financial Post’s Andrew Coyne, which says there are other countries that carry 200% and 300% of their annual income in personal debt… there doesn’t seem to be the level of concern about their economies. So why are we in such a panic?
It appears we are at a point where rates could go up but a lot of things would have to fall into place before that happens… it could take 6, 9 months or even a few years before that happens… maybe longer…? Any rate increase is sure to be slow…. Don’t panic… if you see an opportunity where you can benefit from these low rates, then act on it… don’t let the media scare you into inaction or lack of action…..
And as always, speak with a professional that can discuss and explain the different mortgage products and trends… make an informed choice.
Source:http://canadamortgagenews.ca/2012/04/18/bank-of-canada-suggests-rate-hikes-soon/
April 18, 2012 — Steve Garganis
The Bank of Canada met on Tuesday for the 3rd of eight scheduled meetings this year to set the Bank of Canada rate. As expected, no rate change… But there were some language in the meeting that suggests we could start to see rates go up as early as this year…. here’s an article from The Star and reaction from TD’s Economist.
In short, it appears and I stress the word, appears, as though Mr. Carney is warning us that interest rates will be rising sometime soon. But Economists aren’t buying into that warning just yet. There is still too much uncertainly about the global, U.S. and domestic economies. And as long as these concerns persist, then interest rates should remain low.
SOME EXPERTS DON’T BELIEVE ALL THE DOOM AND GLOOM STORIES
It’s true, we have experienced emergency interest rates for over 3 years now… It’s no secret the govt is concerned about Canadians get into too much debt. You’ve heard the figures. The average Canadians owes around 153% of their annual income…. concerns about a housing bubble. But how does that compare with the rest of the world? Here’s an interesting article from the Financial Post’s Andrew Coyne, which says there are other countries that carry 200% and 300% of their annual income in personal debt… there doesn’t seem to be the level of concern about their economies. So why are we in such a panic?
It appears we are at a point where rates could go up but a lot of things would have to fall into place before that happens… it could take 6, 9 months or even a few years before that happens… maybe longer…? Any rate increase is sure to be slow…. Don’t panic… if you see an opportunity where you can benefit from these low rates, then act on it… don’t let the media scare you into inaction or lack of action…..
And as always, speak with a professional that can discuss and explain the different mortgage products and trends… make an informed choice.
Source:http://canadamortgagenews.ca/2012/04/18/bank-of-canada-suggests-rate-hikes-soon/
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