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Bank of Canada Update

Good morning

 

As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and here is your personal update from me on the recent Bank of Canada announcement. As predicted the Bank of Canada has increased their Overnight Rate by 0.25%. When this happens, it typically means that your Prime Rate is going to increase as well but not always by the same amount. It can also mean that not every lender will adjust their prime rate the same way – even now we have one of the major banks prime rate being 0.15% higher than everyone else’s. Keep an eye out later today for further updates on your lenders’ prime rate.

 

Now Don’t Panic! based on this news, it might be time to assess your current mortgage situation and how we can ensure you are making the right choices for your long-term goals. Now is the time to focus on one of the following key areas:

Make a Plan: You need to do a financial benefit analysis based on what your short and long-term plans are. If you are planning to move in the next few years a variable rate might still be a better option with the lowest penalty, but if you are in your forever home and have a key focus on being mortgage free by a specific timeline such as retirement or sooner, than a fixed term may be more suitable. Everyone’s situation is different so having a customized mortgage that meets your needs, and not the lender, is always the way to go!

Get some advice from me, your Mortgage Broker (not your lender), on what this increase means for you and your situation. Lenders and the media can create a panicked frenzy which might encourage you to think about locking in now in fear of rates going up even further. This means more profit for the lender, a longer commitment from you and difficultly breaking that mortgage later!

 

To continue with the Bank of Canada news, here is an excerpt of the announcement and what they had to say about their decision today:

 

“Recent data have bolstered the Bank’s confidence in its outlook for above-potential growth and the absorption of excess capacity in the economy. The Bank acknowledges recent softness in inflation but judges this to be temporary. Recognizing the lag between monetary policy actions and future inflation, Governing Council considers it appropriate to raise its overnight rate target at this time. The global economy continues to strengthen and growth is broadening across countries and regions. The US economy was tepid in the first quarter of 2017 but is now growing at a solid pace, underpinned by a robust labour market and stronger investment.

Canada’s economy has been robust, fuelled by household spending. As a result, a significant amount of economic slack has been absorbed. The very strong growth of the first quarter is expected to moderate over the balance of the year, but remain above potential. Growth is broadening across industries and regions and therefore becoming more sustainable. As the adjustment to lower oil prices is largely complete, both the goods and services sectors are expanding. Household spending will likely remain solid in the months ahead, supported by rising employment and wages, but its pace is expected to slow over the projection horizon.  At the same time, exports should make an increasing contribution to GDP growth. Business investment should also add to growth, a view supported by the most recent Business Outlook Survey.”

 

Fixed term rates have increased slightly since the last announcement with a five-year fixed term ranging from 2.69% to 2.89%.   If your variable interest rate is higher than this, it might be worth us revisiting to see if we can make some changes and save you unnecessary interest.  Don’t forget the lower rates quoted here might have specific conditions for qualifying and remember that the prime rates and fixed term rates are impacted by two different sets of economic drivers.  Therefore, increases in fixed rates doesn’t always mean the same increase in prime rates and vice versa.

Based on this recent announcement, and the anticipation that the prime rate will remain low and not likely increase for another few months, unless you feel otherwise, I’d recommend that you remain with your current variable rate product if the interest is still lower than a fixed term rate right now.  However, if having a fixed payment is important to you, call me so I can calculate what your new payment would look like and if it is suitable for you.

If you have accumulated some other higher interest debt, this might be the best time to consider a refinance to get you back on track and consolidate. Some of us have not made the most of these low payments and have taken advantage by spending more and more. How much do you have saved up or how closer are you to your mortgage burning party because you have made extra payments on your mortgage? Or maybe you just got a little carried away and have some high interest credit card debt that you can’t seem to pay off in full each month. It is never too late to get back on track. Let’s spend some time and look at how we can consolidate these before interest rates go up further!

Reach out to me for a pro bono consultation to review YOUR situation. DON’T listen to the lender that might be calling you to get you to lock in your amazing variable rate based on fear. Let’s review the math, the facts and then decide what is right for you! I’m here to help you save unnecessary interest by keeping more money in your pocket and not anyone else’s!

I’ll be in touch again for the next announcement on September 6, 2017 and don’t forget to feel free to share this with your friends and family.

 

Yours truly,

 

Eva Neufeld
Accredited Mortgage Professional
Mortgage Tailors
(780) 244-0505
Web:  www.mortgagetailors.com

 

Bank of Canada Announcement

Good morning

 

As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and here is your personal update from me on the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts your Prime Rate.

At 10:00 am EST, Wednesday May 24, 2017, the Bank of the Canada again maintained their overnight rate which means no change to your interest rate.   Let’s not forget that this is a great time to take advantage of such historical low rates.  As the weather gets even warmer you might be thinking of:

Accessing the equity in your home for some debt consolidation or renovations especially if you have noticed a significant increase in house values in your area based on this crazy Spring market!

Worried about your kids not being able to afford or qualify to get into the housing market EVER!  Have you thought about purchasing a home of their choice as an investment property.  I can work with them to get them on the right qualifying and savings plan and you could even consider working with them to purchase it from you in the future – this is commonly known as Rent to Own and something I can help you with – reach out and let’s chat!

 To continue with the Bank of Canada news, here is an excerpt of the announcement and what they had to say about their decision:

 “Inflation is broadly in line with the Bank’s projection… Food prices continue to decline, mainly because of intense retail competition, pushing inflation temporarily lower.   The global economy continues to gain traction and recent developments reinforce the Bank’s view that growth will gradually strengthen and broaden over the projection horizon.   

The Canadian economy’s adjustment to lower oil prices is largely complete and recent economic data have been encouraging, including indicators of business investment. Consumer spending and the housing sector continue to be robust on the back of an improving labour market, and these are becoming more broadly based across regions. Macroprudential and other policy measures, while contributing to more sustainable debt profiles, have yet to have a substantial cooling effect on housing markets. Meanwhile, export growth remains subdued in the face of ongoing competitiveness challenges.

The Bank’s monitoring of the economic data suggests that very strong growth in the first quarter will be followed by some moderation in the second quarter.  So, it looks like it is still anticipated that prime rates won’t start increasing until well into 2017 but we are being given the heads up that they will start increasing eventually.  Remember, that any increase to the prime rate since 1992 has only been by 0.25% at any ONE time, so you won’t see a large significant increase all at once.

 

Interest rates haven’t really changed since the last announcement with;

 

  1. Fixed rates ranging from 2.49% to 2.79%
  2. The discount on the variable rate has improved with as low as prime minus 0.80% to 0.50% so 90% to 2.25%. If your interest rate is higher than this on your variable it might be worth us revisiting to see if we can make some changes and save you unnecessary interest.  Don’t forget the lower rates quoted here might have specific conditions for qualifying.

 

Also, remember that the prime rates and fixed term rates are impacted by two different sets of economic drivers and so increases in fixed rates doesn’t always mean the same increase in prime rates and vice versa.

 

Based on this recent announcement, and the anticipation that the prime rate will still remain low for a while now, unless you feel otherwise, I’d recommend that you remain with your current variable rate product as the interest is still lower than a fixed term rate right now.  However, if having a fixed payment is important to you, call me so I can calculate what your new payment would look like and also if it is suitable for you. I’ll be in touch again for the next announcement on July 12, 2017.

 

I wonder if I can ask a favour; It is that time of year that many may be not going on a summer vacation or putting their kids into summer camps because they can’t afford it and finances are tight.  If they are a home owner and have some equity, we could potentially help accessing it to help them get financially stable again or at least a little bit further ahead.   If you know anyone that sounds just like this, would you mind passing my contact information on to them.   This is very much appreciated.

 

Yours truly,

 

Bank of Canada Announcement

Good morning

 

As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and here is your personal update from me on the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts your Prime Rate.

 

At 10:00 am EST, Wednesday April 12, 2017, the Bank of Canada held it’s prime lending rate. So let’s not forget that this is a great time to take advantage of such historical low rates.  As the weather warms up you might be thinking of

Accessing the equity in your home for some renovations especially if you have noticed a significant increase in house values in your area based on the Spring market!

Moving this year (downsizing or upsizing) and need to understand your financing options

 

Taking advantage of the low interest rates and purchasing a cottage, rental property or somewhere for a family member to live in (for University, College or keeping aging family closer to you).

 

Let’s chat about your options – it is never too late, or early, to start planning especially as it has been proven that real estate is an amazing long term investment!   Chat to me about your options … I’d be happy to make those plans into realty.

To continue with the Bank of Canada news, here is an excerpt of the announcement and what they had to say about their decision:

 “Global economic growth is strengthening and becoming more broadly-based than the Bank had expected … although there is still considerable uncertainty about the outlook. In the US, some temporary factors weighed on economic activity in the first quarter but the drivers of growth remain solid. The US is close to full employment, unlike many other advanced economies, including Canada, where material slack remains. Global financial conditions remain accommodative.  

In Canada, recent data indicate that economic growth has been faster than was expected…  Growth was temporarily boosted by a resumption of spending in the oil and gas sector and the effects of the Canada Child Benefit on consumer spending. Residential investment has also been stronger than expected. Employment data have been robust, although gains in hours worked are still soft. Meanwhile, export growth has been uneven in the face of ongoing competitiveness challenges. Further, despite a recent uptick in sentiment, business investment remains well below what could be expected at this stage in the recovery. Accordingly, while the recent rebound in GDP is encouraging, it is too early to conclude that the economy is on a sustainable growth path.”

The Bank acknowledges the strength of recent data, some of which is temporary, and is mindful of the significant uncertainties weighing on the overall economic outlook; So it looks like it is still anticipated that prime rates won’t start increasing until well into 2017 but we are being given the heads up that they will start increasing eventually.  Remember, that any increase to the prime rate since 1992 has only been by 0.25% at any ONE time, so you won’t see a large significant increase all at once.

 

Interest rates have changed slightly;

 

  1. Fixed rates have gone down a bit at 54% to 2.79%
  2. The discount on the variable rate has improved with as low as prime minus 0.65% to 0.70% so 05% to 2.00%. If your interest rate is higher than this on your variable it might be worth us revisiting to see if we can make some changes and save you unnecessary interest.

 

Also, remember that the prime rates and fixed term rates are impacted by two different sets of economic drivers and so increases in fixed rates doesn’t always mean the same increase in prime rates and vice versa.

 

Based on this recent announcement, and the anticipation that the prime rate will still remain low for a while now, unless you feel otherwise, I’d recommend that you remain with your current variable rate product as the interest is still lower than a fixed term rate right now.  However, if having a fixed payment is important to you, call me so I can calculate what your new payment would look like and also if it is suitable for you. I’ll be in touch again for the next announcement on May 24, 2017.

 

I wonder if I can ask a favour; It is that time of year that many think about what they want to accomplish this year – if buying their first home is on the “wish list”, would you mind passing my contact information on to them.  With all the hot markets out there now, and changes to mortgage legislation, there is a lot of confusion especially amongst our first time home buyers and my specialty is walking them thru the steps with ease!  This is very much appreciated.

 

Yours truly,

Eva Neufeld
Mortgage Tailors
(780) 244-0505

 

 

 

 

 

Bank of Canada Announcement

Good morning

As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and here is your personal update from me on the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts your Prime Rate.

At 10:00 am EST, Wednesday March 1, 2017, the Bank of Canada again maintained their overnight rate which means no change to your interest rate. This is great news to start the year off as you continue to benefit from low rates which for sure puts a smile on your face as the temperature outside is a little frosty.

Let’s not forget that this is a great time to take advantage of such historical low rates and chat to a financial advisor about a Tax Free Savings Account or some RRSP contributions to trigger a potential income tax refund; you might have missed the RSP deadline for this year but it is never too late to start saving and planning for the future. If you don’t have a financial advisor, let me know and I’d be happy to recommend one to you.

On another note, are you carrying a balance on any lines of credit or credit cards right now where the interest rate is over 3%? If so, this is the perfect time to chat about a potential debt consolidation or refinance especially – let’s start saving you some unnecessary interest and getting to your mortgage burning party sooner! Maybe you are planning a renovation project soon or purchasing a second home or rental property – chat to me about your options … I’d be happy to make those plans into realty.

To continue with the Bank of Canada news, here is an excerpt of the announcement and what they had to say about their decision:

“Overall, recent data on the global and Canadian economies have been consistent with the Bank’s projection of improving growth. In Canada, recent consumption and housing indicators suggest growth in the fourth quarter of 2016 may have been slightly stronger than expected. However, exports continue to face the ongoing competitiveness challenges described in the January Monetary Policy Report. The Canadian dollar and bond yields remain near levels observed at that time. While there have been recent gains in employment, subdued growth in wages and hours worked continue to reflect persistent economic slack in Canada, in contrast to the United States.”

Given the mixed messages of both positive growth versus a slow down in some sectors, it is still anticipated that prime rates won’t start increasing until well into 2017 but we are being given the heads up that they will start increasing eventually. Remember, that any increase to the prime rate since 1992 has only been by 0.25% at any ONE time, so you won’t see a large significant increase all at once.

Fixed rates haven’t changed at all since the last announcement, and are around 2.59% to 2.89% for a five-year fixed term. Also, remember that the prime rates and fixed term rates are impacted by two different sets of economic drivers and so increases in fixed rates doesn’t always mean the same increase in prime rates and vice versa.

Based on this recent announcement, and the anticipation that the prime rate will still remain low for a while now, unless you feel otherwise, I’d recommend that you remain with your current variable rate product as the interest is still lower than a fixed term rate right now. However, if having a fixed payment is important to you, call me so I can calculate what your new payment would look like and also if it is suitable for you. I’ll be in touch again for the next announcement on April 12, 2017.

I wonder if I can ask a favour, if you hear a friend or family member talk about going thru a financially tough time – maybe I can help with some budgeting, credit counselling and debt consolidation options for them. It is also that time of year that many think about what they want to accomplish this year – if buying their first home is on the “wish list”, would you mind passing my contact information on to them – this is very much appreciated.

Yours truly,

Eva Neufeld AMP
Mortgage Tailors
Phone:  (780) 244-0505

 

Bank of Canada Maintained their Rate

Firstly, a very Happy New Year to you and your family – if one of your New Year’s Resolutions was to get back on track with your financial goals and wealth growth plans, now is a perfect time. This is the first of many announcements this year about interest rate changes that will impact a majority of your current and future debt – from mortgages and lines of credit to credit cards and personal loans. My New Year Resolution to you is to help ensure that the impact of interest rate changes to you is minimal – advising you on ways to have more of your hard earned cash stay in YOUR pockets and doesn’t line someone else’s – saving you thousdands in unnecessary interest along the way – imagine what you could do with an extra $5,000 or $6,000 this year?

You may have already heard the impact of recent mortgage legislation and qualifying changes has already impacted the borrowing power of many homebuyers and owners, and we have also seen fixed term rates rise slightly. Just today on of the default insurer’s, CMHC announced that they will be increasing their default mortgage insurance premiums effective March 1, 2017 – this typically only impacts those with less than 20% down payment. Now, more than ever, the benefits of receiving a pro bono consulation from your mortgage broker is key to ensuring you make the right decision on your biggest financial obligation while protecting your biggest asset – your income!

The communication is going to focus on what the Bank of Canada had to say today and how that impacts you – reach out to me for a pro bono consultation on what we can do now to meet your 2017 financial wealth and freedom goals and start to save you some unnecessary interest.

As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and here is your personal update from me on the recent Bank of Canada announcement on changes to the Overnight Rate which in most cases impacts your Prime Rate.

At 10:00 am EST, Wednesday January 18, 2017, the Bank of Canada again maintained their overnight rate which means no change to your interest rate. This is great news to start the year off as you continue to benefit from low rates which for sure puts a smile on your face as the temperature outside is a little frosty.

Given the assumptions the bank made in its forecast, they are expecting an upward swing in economic growth in 2017 anticipating to reach full capacity by mid 2018. It is still anticipated that prime rates won’t start increasing until well into 2017 but we are being given the heads up that they will start increasing eventually. Remember, that any increase to the prime rate since 1992 has only been by 0.25% at any ONE time, so you won’t see a large significant increase all at once.

Fixed rates have increased slightly since the last announcement, and are around 2.69% to 2.89% for a five year fixed term. Also, remember that the prime rates and fixed term rates are impacted by two different sets of economic drivers and so increases in fixed rates doesn’t always mean the same increase in prime rates and vice versa.

Based on this recent announcement, and the anticipation that the prime rate will still remain low for a while now, unless you feel otherwise. I’d recommend that you remain with your current variable rate product as the interest is still lower than a fixed rate right now. However, if having a fixed payment is important to you, call me so I can calculate what your new payment would look like and also if it is suitable for you. I’ll be in touch again for the next announcement on March 1, 2017.

On closing, I wonder if I can ask a favour – you might know someone who is unfortunetly having a tough time right now with maybe too much debt or recent loss of income. There are many options to help using debt consolidation or access to some funds to get you thru the tough times using the equity in their home. I have found recently that my access to alternative funds with lenders that have very flexible qualifying guidelines, has been able to help many who are in transition and/or just need enough money to get them thru the tough time like finding a job, keeping above water and feeding their family in the meantime. Don’t hesitate to ask them to reach out to me – I can provide a pro bono consulation to get them thru this.

Your truly,

Eva Neufeld AMP
Verico Mortgage Tailors
(780) 244-0505
Email:  eva@mortgagetailors.com

 

Bank of Canada Announcement

Good morning

So with the snow falling and the beautiful colors and lights of the holiday season approach, we have some great news.

As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and here is your personal update from me on the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts your Prime Rate.

At 10:00 am EST, Wednesday December 7, 2016, the Bank of Canada again maintained their overnight rate which in essence means no change to your interest rate. I fell like I have been repeating myself over and over again as they haven’t increased the rate since July 2007 – nine years ago! You continue to benefit from low rates which for sure puts a smile on your face during this holiday season – which if we were honest can be a little stressful at times!

I wanted to reiterate that there have been a lot of changes in the mortgage legislation and the qualifying guidelines recently, and potentially more to come, all in hope of stabilizing the real estate market as well as ensuring home owners and those with significant debt can handle future interest rate increases. Some of those changes involved refinancing your home in the future to pull equity might result in limited options and tighter qualifying. With all of this comes a lot of confusion and most importantly, how will all these changes potentially impact you and your plans for borrowing funds in the future – whether it is refinancing to maximize the low interest rates and equity in your home, purchasing rental properties or moving up into a bigger home? Call me now for a pro bono consultation to review your current financial situation and let’s start planning now for 2017 – let’s make sure we get you prepared now and ensure the changes won’t impede your futire borrowing plans.

Given the downward revision to economic growth, the Bank considers the risks around its updated inflation outlook to be roughly balanced, albeit in a context of heightened uncertainty. It is still anticipated that rates won’t start increasing until well into 2017 depending on how the recent changes will impact the economy, Remember, that any increase to the prime rate since 1992 has only been by 0.25% at any ONE time, so you won’t see a large significant increase all at once.

Fixed rates have increased slightly since the last announcement, and are around 2.59% to 2.89% for a five year fixed term.

Based on this recent announcement, and the anticipation that the prime rate will still remain low for a while now, unless you feel otherwise, I’d recommend that you remain with your current variable rate product as the interest is lower than a fixed term rate now. However, if having a fixed payment is important to you, call me so I can calculate what your new payment would look like and also if it is suitable for you. I’ll be in touch again for the next announcement on January 18, 2017.

I wonder if I can ask a favour; this time of year can be really tough for many that are not as financially fortunate as us; whether it is mountains of debt that they can’t get a handle on, low income or even unemployed…. I can help. If you hear a colleague, friend or famliy member talk about going thru a financially tough time would you mind letting me know, I might be able to help. I can assist home owners, no matter their credit or income, access equity to get them back their financial feet and relieve some stress – especially during this time when it should be smiles and joy instead of stress and sleepless nights. My expertise in helping everyone thru budgeting, credit counselling and debt consolidation can make a huge difference to their outlook. Would you mind passing my contact information on to them – I’ll provide a pro bono consultation to provide some great options on how I can help – this is very much appreciated.

Eva Neufeld AMP
Verico Mortgage Tailors

(780) 244-0505

 

Bank of Canada Announcement

Good morning

As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and here is your personal update form me on the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts your Prime Rate.

At 10:00 am EST, Wednesday May 25, 2016, the Bank of Canada maintained their overnight rate which in essence means no change to the interest rate of your variable rate mortgage, line of credit and/or student loans. This is still good news for the amount of interest that you will pay, but we also have to recognize that it is a reflection of the slow economy.

So summer looks like it is finallly on its way with the weather warming up; are you thinking of some renovations or sonsolidating some debts that don’t seem to be going away anytime soon! It is never yo late, or early, to start planning for the future especially as rates are still at historical lows! Chat to me about your options… I’d be happy to make those plans into reality and save unnecessary interest along the way.

To continue with the Bank of Canada news, here is an excerpt of the announcement and what they had to say about their decision today:

“The global economy is evolving largely as the Bank projected. In the US, despite weakness in the first quarter, a number of indicators, including employment, point to a return to solid growth in 2016. In Canada, the economy’s structural adjustment to the oil price shock continues, but it is proving to be uneven. Growth in the first quarter of 2016 appears to be in line with the Bank’s April projection, although business investment and intentions remain disappointing. The second quarter will be much weaker than predicted because of the devastating Alberta wildfires. The Bank’s preliminary assessment is that fire-related destruction and the associated halt to oil production will cut about 1 1/4 perecentage points of real GDP growth in the second quarter. Theeconomy is expected to rebound in the third quarter, as oil production resumes and reconstruction begins. While the Canadian dollar has been fluctuating in response to shifting expectations of US monetary policy and higher oil prices, it is now close to the level assumed in April. Canada’s housing market continues yo display strong regional divergences, reinforced by the complex adjustment underway in the economy.

The Bank of Canada is still concerned with the financial vulnerabilities and regional divergences underway in Canda’s economy. It is still anticipated that rates won’t start increasing until well into 2016 even early 2017. Remember, that any increase to the prime rate since 1992 has only been 0.25% at any ONE time, so you won’t see a large significant increase all at once.

Fixed rates haven’t really changed at all since the last announcement, and are around 2.59% to 2.69% for a five year fixed term. Some lenders offering quick close specials at slightly discounted rates.

Based on this recent announcement, and the anticipation that the prime rate will remain low for a while now, unless you fell otherwise, I’d recommend that you remain with your current variable rate product as the interest is lower than a fixed rate term right now. However, if having a fixed payment is important to you, call me so I can calculate what your new payment would look like and it if is suitable for you. I’ll be in touch again for the next announcement on Jluy 13th, 2016.

I wonder if I can ask a favour, if you hear a friend or family member talk about going throu a financially tough time – maybe I can help with some budgeting, credit counselling and debt consolidation options for them. Also, do you have a friend or family member where buying their first home is on the “wish list”, would you mind passing my contact information on to them – this is very much appreciated.

Yours truly,

Eva Neufeld AMP
Verico Mortgage Tailors
(780) 244-0505