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Posts tagged ‘financing’

Bank Of Canada Raises Interest Rate to 0.5% At June 2010 Meeting

Only one direction to go!

This morning at its June 1, 2010 meeting, the Bank of Canada raised its key overnight lending rate (the rate at which it lends funds to chartered banks) one-quarter per cent (25 basis points) to 0.5%, its first rate hike in almost three years.

What can we expect? Banks will be increasing their prime lending rates. This is the rate upon which variable-rate mortgages are based, as well as other borrowing products such as personal loans, and some credit cards. The quarter-per cent hike translates into about $12 more per $100,000 of borrowed funds.

One thing to consider if you’re going to be renewing your mortgage or taking out a new mortgage when you buy, is that the lender discount from prime rate has been increasing (best I’ve heard is prime -0.6% lately), which may help make up for this first rate hike. Talk to an experienced mortgage broker and see what your options are.

The Bank of Canada’s move to increase rates comes amid a shaky worldwide recovery and only time will tell if more rate hikes will be necessary.

Bottom line: don’t panic. Rates are still historically low and will likely remain so for the foreseeable future. Mortgage rates have been on a generally downward trend for about 30 years.

The full Bank of Canada news release can be found here.

Tim Ayres – Sooke Real Estate Professional

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Bank Of Canada Cuts Interest Rate to 0.25% At April 2009 Meeting

Snip!

Snip!

To the surprise of many analysts, this morning at its April 21, 2009 meeting, the Bank of Canada cut its key overnight lending rate (the rate at which it lends funds to chartered banks) another half-percent to 0.25%, continuing the trend of historic low rates in an effort to stimulate the economy. Since December 2007, the Bank has trimmed 4.25% off its overnight lending rate, which has had the effect of lowering mortgage rates (especially variable rate mortgages).

Two of Canada’s chartered banks were quick to match the rate cut, trimming prime to 2.25% – a good sign that credit is available and our banks are ready to lend. This should translate into lower variable-rate mortgage products in the coming weeks. If you’re already on a variable-rate mortgage tied to the prime rate, then you’ll get a letter from your financial institution soon, advising you of the change. If you’re lucky enough to have a prime rate -0.85% mortgage, this means that with bank prime being at 2.25%, you’ll be paying a paltry 1.40% on your variable rate mortgage. That’s almost free.

The Bank predicts that fiscal and financial stimulus measures initiated by governments and central banks worldwide have been slower than expected to take hold, and will be holding the 0.25% rate until the end of the second quarter of 2010, barring unforeseen circumstances. All this means that recovery of our economy is going to take longer, starting late next year, with the economy reaching full capacity in 2011.

The full Bank of Canada news release can be found here.

Tim Ayres – Sooke Real Estate Professional

Your comments are welcomed and encouraged!
Just use the form or link below this post.

You can bookmark this post using the button below,
or subscribe to this blog for free updates using the big buttons on the sidebar!

Bank Of Canada Cuts Interest Rate to 0.5% At March 2009 Meeting

Scissors

Big scissors for a big job!

UPDATE: CLICK FOR THE APRIL 21st, 2009 INTEREST RATE ANNOUNCEMENT

This morning at its March 3, 2009 meeting, the Bank of Canada cut its key overnight lending rate (the rate at which it lends funds to chartered banks) another half-percent to 0.5%, continuing the trend of historic low rates in an effort to stimulate the economy.

Canada’s big five banks were quick to match the rate cut, trimming prime to 2.5% – a good sign that credit is available and our banks are ready to lend. This should translate into lower variable-rate mortgage products in the coming weeks. If you’re already on a variable-rate mortgage tied to the prime rate, then you’ll get a letter from your financial institution soon, advising you of the change. If you’re lucky enough to have a prime rate -0.85% mortgage, this means that with bank prime being at 2.5%, you’ll be paying a paltry 1.65% on your variable rate mortgage. That’s almost free.

The Bank predicts that fiscal and financial stimulus measures should start to take hold later this year and into next to help the economy recover, and hints that rates will remain at this level or may decrease further until excess supply in the economy is taken up.

The full Bank of Canada news release can be found here.

Tim Ayres – Sooke Real Estate Professional

Your comments are welcomed and encouraged!
Just use the form or link below this post.

You can bookmark this post using the button below,
or subscribe to this blog for free updates using the big buttons on the sidebar!

Radius Victoria isn’t Dead Yet

Radius Victoria LogoSometimes the sound of silence on a formerly buzzing construction site can be deafening. We haven’t heard anything about the stalled Radius project in uptown downtown Victoria in months, since the project was stalled due to credit woes in late 2007. But in today’s Times Colonist, John Schucht, president of Waywell Development, is quoted saying that the project is going to get back on track “one way or another.”

Since I first heard about the project, I have liked its “urban village” concept and thought it was a good fit for Victoria. I’ve blogged about it before, and that post stands as one of the most popular on the blog (7th place, to be precise), so obviously other people are excited about it too. The combination of commercial office space (including University Canada West), retail, and residential units in one city block is a good idea for reducing the need for cars in the city.

I’m glad to hear that they may be close to getting the project back together. With half the commercial space leased and half of the residential units sold, it seems that an investor would have confidence in the developer to make this project work.

Let’s hope it comes together.

Tim Ayres

Your comments are always welcome and encouraged.

Just use the comment form below!


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Bank Of Canada Expected To Cut Interest Rates

UPDATE: APR 22, 2008 RATE ANNOUNCEMENT

Don’t forget, the Bankof Canada meets tomorrow, April 22nd, 2008. The Bank is expected to cut interest rates by another 50 basis points (0.5%) to generate some stimulus in the weakening economy. This is of course great news for anyone on floating rate mortgages and buyers of real estate. With MLS listings at numbers we haven’t seen in years, buyers have more choice than ever when looking for that perfect place.

Be sure to check back tomorrow to see my post about the rate change meeting and my commentary.

Tim Ayres


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First-Time Home Buyer's Seminar

West Shore Professionals Hosting Free Event

Tuesday, January 29th, 2008 at 6:00 P.M.

Exclusive first-time buyer’s seminar. Hosted by three of the West Shore’s best and brightest professionals, this informative presentation will enlighten you on the process of buying your first home, and lay out options to make your home ownership dreams a reality!

Your Hosts:

Jeremy Kimm, Certified Financial Planner. Jeremy will explain how to take advantage of investment, government programs and tax strategies to help you quickly “create” a down payment on your first home.
Alexis Mills, Accredited Mortgage Professional. Alexis will spell out the different financing options that have become available, and how the services of a mortgage broker can get you better interest rates than the banks and credit unions. Alexis has access to over 50 different lenders, making them compete for your business.
Tim Ayres, REALTOR®. Tim will go through the home-buying process, step by step, explaining all the details and de-mystifying this exciting and important time in your life. Tim will show you how you can be the first to know about property deals when they become available!

If you’re planning to stop paying rent in 2008, you simply can’t afford to miss this free seminar. From savings to sun decks, closets to closing, you’ll leave empowered with knowledge you can use!

Tuesday, January 29th at 6:00PM
At the West Shore Investor’s Group Office
201-630 Goldstream Ave

Space is limited; please call Tim at 642-6361 or e-mail to reserve your spot!

Subscribe via e-mail, your favourite feed reader, or bookmark this post:

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First-Time Home Buyer’s Seminar

West Shore Professionals Hosting Free Event

Tuesday, January 29th, 2008 at 6:00 P.M.

Exclusive first-time buyer’s seminar. Hosted by three of the West Shore’s best and brightest professionals, this informative presentation will enlighten you on the process of buying your first home, and lay out options to make your home ownership dreams a reality!

Your Hosts:

Jeremy Kimm, Certified Financial Planner. Jeremy will explain how to take advantage of investment, government programs and tax strategies to help you quickly “create” a down payment on your first home.
Alexis Mills, Accredited Mortgage Professional. Alexis will spell out the different financing options that have become available, and how the services of a mortgage broker can get you better interest rates than the banks and credit unions. Alexis has access to over 50 different lenders, making them compete for your business.
Tim Ayres, REALTOR®. Tim will go through the home-buying process, step by step, explaining all the details and de-mystifying this exciting and important time in your life. Tim will show you how you can be the first to know about property deals when they become available!

If you’re planning to stop paying rent in 2008, you simply can’t afford to miss this free seminar. From savings to sun decks, closets to closing, you’ll leave empowered with knowledge you can use!

Tuesday, January 29th at 6:00PM
At the West Shore Investor’s Group Office
201-630 Goldstream Ave

Space is limited; please call Tim at 642-6361 or e-mail to reserve your spot!

Subscribe via e-mail, your favourite feed reader, or bookmark this post:

Subscribe  by Email AddThis Feed Button AddThis Social Bookmark Button