Alberta’s Best Mortgage Rate - 3.59 on a 5 year fixed 3.49 on a 3 year fixed
Current Mortgage rates 3.59% 5 year fixed
We saw a roller coaster ride on the fixed mortgage rates for 2009, 2010 and now it looks like 2011 will be no different. In the 2009 summer Alberta had the lowest mortgage rate of 3.5% for a 5 year fixed. Then a month later it had shot up to 4.5%. Then because of the bond rate Alberta again had the lowest mortgage rates at 3.69%. Current mortgage rates again started to increase for October and the first part of November of 2009. Most of the branch mortgage specialists of the Major Banks were sitting at close to 4.49% on a 5 year fixed. At the end of 2009 the bond market softened up a bit, and rates declined slightly. The best mortgage rate for Alberta or anywhere was 3.89% on a 5 year fixed. Right around December of 2009 I had all these reports that the banks were going to jump the rates up. Then the banks, true to their nature the opposite happened in the beginning of February 2010. Rates dropped. Now after the banks raising rates in January of 2011, now they are back down to the 3.5% range.
The lowest fixed rates we have ever seen is 3.49% on a five year fixed, we are know currently at a 3.59% on a 5 year fixed and there are only a few lenders offering it. One great thing about this mortgage is it can be used purchases, and Mortgage refinances but it can only be held for 30 days from the time I submit the application.
The bank of Canada has been saying for the last year that rates are going up and they have but they have also come right back down. So it is left to us to guess as no one seems to have a clue what is going on. Generally when the economy isn’t doing so hot they keep the rates low. Our economy and especially the housing market are definitely showing all the signs of the recession being over. The problem is it isn’t that simple. You have to consider the increase in our dollar, increase in Jobs, problems with our Southern Neighbors and pretty much every other economic situation in the world. Imports, Exports, an increase of printing money and whole bunch or other factors and the rates are a result of all of that.
Everyone seems to have their guesses about what this will happen to the fixed and variable but as consumer confidence continues to grow I feel that we will continue to see rates low for the most part of 2011 and then look for the roller-coaster ride of rates trending upwards in 2012 until we get back to normal rates of 5 – 6%. Because of the uncertainty, many will still be working hard to get Alberta’s best mortgage rate locked in.
Whatever you decide to do make sure that you are picking they type of rate that makes sense for you unless you have a crystal ball of course.
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Clarifications on Canada Mortgage Changes
Finally! Here are some clarifications on mortgage changes The Bank of Canada announced almost a month ago!
Effective April 19th, all terms less than 5 years that are high ratio insured mortgages (anything less than 80% Loan to Value) will be qualified using the greater of the chartered bank 5-year posted rate (5.39% currently), or the term rate (some banks have fixed rates on 5 – 10 year terms that are higher than 5.39%). Currently most banks are qualifying right around 4% on variables and will only qualify higher on fixed terms less than 3 years. So what does this mean? Until CMHC changes its mind again, 5 year fixed rates are the only rates that you won’t have to qualify on the highest rate.
The posted qualifying rate will be published by the Bank of Canada each Monday. Here’s the link: Posted Mortgage Rate (Look for series V121764.)
More not-so-good news for Canadians – Fixed rates look like they will be going up right away! How do we know? Because Canada’s 5 year government bond jumped up 18 points last week, the most in almost five months. (Bond yields guide fixed-rate mortgage pricing.) Yes, you may have heard that the Bank of Canada has kept the prime rate the same, but variable rates and fixed rates are usually influenced by different factors.
Some reasons why fixed rates may be rising very shortly:
· stronger-than-forecasted U.S. employment data
· new June maturity as the 5-year benchmark, asset rotation into stocks
· 20% increase in debt issuance announced in last week’s budget
· Increased consumer confidence
· More people spending money
A reason why rates might hold off a bit:
· Canadian employment data that usually comes out the same day as U.S. data has been held off until this week. If jobs are up, then we’ll be seeing interest rates jump up once again.
Here are some more changes happening in the industry because of the 2010 Federal Budget.
- Pre-payment Penalties: The Government will attempt to “bring forward regulations” to standardize the calculation and disclosure of mortgage pre-payment penalties. (This applies to federally regulated lenders.) This is mainly to help inform the average Canadian about clauses in their mortgages papers like Interest Rate Differential (IRD) penalties.
- Credit Unions: The Canadian government will begin “legislative framework to enable credit unions to incorporate and continue federally.” This could help Credit Unions have more of a chance to compete with big banks so that they could do other provinces then just the ones they are located in.
Dec 02, 2009 New Real-Estate Stats
Bank of Canada Interest Rate
|
September 10, 2009 |
0.25% |
|
October 20, 2009 |
0.25%* |
|
December 8, 2009 |
Next meeting date |
Source: Bank of Canada
*Bank of Canada statement included reference to hold rate to end of second quarter 2010
Bank Prime Lending Rate
|
September 11, 2009 |
2.25% |
|
October 21, 2009 |
2.25% |
|
December 9, 2009 |
Next meeting date |
Source: Bank of Canada
US Federal Reserve Board Discount Rate
|
September 22, 2009 |
0.00% – 0.25% |
|
November 4, 2009 |
0.00% – 0.25% |
|
December 15, 2009 |
Next meeting date |
Source: US Federal Reserve
Exchange Rate $CDN($US)
|
October 30, 2009 |
.9243 |
|
November 13, 2009 |
.9519 |
|
November 27, 2009 |
.9421 |
Source: Bank of Canada
Government of Canada Bonds
|
Bond Type |
October 28, |
November 12, 2009 |
November 25, 2009 |
|
1 year Treasury Bill |
0.60% |
0.54% |
0.48% |
|
3 year Benchmark |
1.90% |
1.87% |
1.62% |
|
5 year Benchmark |
2.70% |
2.70% |
2.41% |
|
10 year Benchmark |
3.45% |
3.51% |
3.25% |
Source: Bank of Canada
Total New Housing Starts (Seasonable adjusted and annualized)
|
Province |
August |
August |
September |
September |
October |
October 2008 |
|
Newfoundland/Labrador |
2,400 |
3,100 |
2,800 |
3,200 |
2,900 |
3,100 |
|
PEI |
1,000 |
700 |
700 |
500 |
1,200 |
600 |
|
Nova Scotia |
4,200 |
3,300 |
4,500 |
4,400 |
4,000 |
4,300 |
|
New Brunswick |
3,700 |
3,800 |
2,900 |
4,500 |
3,600 |
5,000 |
|
Quebec |
47,300 |
43,300 |
41,300 |
70,100 |
37,200 |
48,400 |
|
Ontario |
44,200 |
89,800 |
50,200 |
84,200 |
57,600 |
82,600 |
|
Manitoba |
5,000 |
5,400 |
4,400 |
5,600 |
4,200 |
5,800 |
|
Saskatchewan |
5,100 |
5,300 |
3,700 |
6,400 |
3,600 |
4,900 |
|
Alberta |
18,400 |
22,900 |
22,600 |
57,300 |
25,000 |
24,700 |
|
British Columbia |
19,200 |
33,500 |
16,200 |
43,900 |
18,200 |
32,300 |
|
Canada |
150,500 |
211,100 |
149,300 |
281,300 |
157,400 |
211,800 |
Source: CMHC Housing Now – November 2009 and November 2008.
This seasonally adjusted data goes through stages of revision at different times of the year.
Average MLS resale price for local markets
|
City |
October 2008 |
October 2009 |
|
Halifax |
$224,607 |
$235,465 |
|
Saint John, NB |
$151,709 |
$178,632 |
|
Quebec |
$198,357 |
$219,719 |
|
Montreal |
$257,242 |
$284,024 |
|
Ottawa |
$280,870 |
$320,561 |
|
Toronto |
$353,018 |
$403,507 |
|
Hamilton/Burlington |
$254,004 |
$296,253 |
|
Winnipeg |
$190,374 |
$210,618 |
|
Saskatoon |
$285,310 |
$274,759 |
|
Calgary |
$388,565 |
$399,679 |
|
Edmonton |
$317,744 |
$318,969 |
|
Vancouver |
$556,682 |
$638,948 |
|
Victoria |
$469,243 |
$481,500 |
Source: Canadian Real Estate Association
Housing Affordability Index
Standard Two-Storey
|
|
Average Price |
Qualifying Income($) |
Affordability Measure |
||||
|
Region |
Q3 2009 |
Y/Y |
Q3 2009 |
Q3 2009 |
Q/Q |
Y/Y |
Avg. since ‘85 |
|
Canada |
344,100 |
-0.3 |
79,100 |
45.8 |
1.2 |
-5.8 |
43.3 |
|
British Columbia |
557,400 |
-1.2 |
113,600 |
67.6 |
2.9 |
-8.5 |
53.7 |
|
Alberta |
368,200 |
-4.9 |
82,200 |
37.9 |
1.3 |
-7.5 |
38.5 |
|
Saskatchewan |
305,500 |
-0.8 |
73,200 |
44.0 |
1.0 |
-4.6 |
37.6 |
|
Manitoba |
244,900 |
3.5 |
61,300 |
37.5 |
0.3 |
-3.4 |
37.5 |
|
Ontario |
362,100 |
-0.3 |
85,300 |
45.2 |
1.0 |
-5.8 |
44.0 |
|
Quebec |
240,100 |
2.8 |
59,000 |
40.4 |
1.2 |
-3.7 |
39.0 |
|
Atlantic |
210,000 |
1.3 |
55,000 |
35.9 |
0.4 |
-4.7 |
38.7 |
|
Toronto |
522,600 |
0.2 |
115,300 |
57.8 |
1.9 |
-7.5 |
53.7 |
|
Montreal |
305,800 |
0.7 |
71,300 |
47.4 |
0.8 |
-5.5 |
41.3 |
|
Vancouver |
678,900 |
-1.9 |
135,500 |
74.2 |
4.3 |
-10.2 |
61.7 |
|
Ottawa |
320,800 |
1.0 |
81,000 |
40.5 |
0.4 |
-4.4 |
39.5 |
|
Calgary |
414,600 |
-4.7 |
88,100 |
38.5 |
2.0 |
-8.1 |
40.0 |
|
Edmonton |
365,300 |
-2.6 |
83,100 |
38.9 |
0.9 |
-6.7 |
36.8 |
Standard Condominium
|
|
Average Price |
Qualifying Income($) |
Affordability Measure |
||||
|
Region |
Q3 2009 |
Y/Y |
Q3 2009 |
Q3 2009 |
Q/Q |
Y/Y |
Avg. since ‘85 |
|
Canada |
205,700 |
-1.0 |
47,600 |
27.6 |
0.5 |
-3.6 |
26.9 |
|
British Columbia |
275,600 |
-0.3 |
57,100 |
34.0 |
1.2 |
-3.9 |
28.0 |
|
Alberta |
219,300 |
-7.9 |
48,700 |
22.4 |
0.5 |
-5.2 |
22.1 |
|
Saskatchewan |
186,200 |
-8.7 |
44,600 |
26.8 |
0.8 |
-4.7 |
24.1 |
|
Manitoba |
130,100 |
4.8 |
33,400 |
20.5 |
0.3 |
-1.6 |
20.9 |
|
Ontario |
217,200 |
-0.9 |
51,800 |
27.4 |
0.5 |
-3.6 |
27.9 |
|
Quebec |
170,300 |
1.2 |
40,700 |
27.8 |
0.1 |
-3.0 |
27.0 |
|
Atlantic |
149,800 |
4.8 |
37,700 |
24.6 |
0.3 |
-2.5 |
24.7 |
|
Toronto |
292,700 |
-1.5 |
65,400 |
32.8 |
1.0 |
-4.7 |
31.2 |
|
Montreal |
204,500 |
3.9 |
47,100 |
31.3 |
0.9 |
-2.8 |
29.0 |
|
Vancouver |
351,500 |
0.4 |
70,600 |
38.7 |
1.7 |
-4.4 |
31.4 |
|
Ottawa |
209,000 |
1.3 |
51,600 |
25.8 |
0.3 |
-2.8 |
23.6 |
|
Calgary |
249,500 |
-7.3 |
52,700 |
23.0 |
0.3 |
-5.5 |
22.8 |
|
Edmonton |
206,000 |
-6.8 |
46,800 |
21.9 |
0.5 |
-4.7 |
18.1 |
