Hi everyone,

I thought that the Canadian section of this site needed a bit more information on financing options, so I thought I'd start a new topic. I'll post some industry news, product news, and rate updates etc. for you guys.

If there is anything specific you'd like to see, let me know...

We received word of a couple of new promotions today:

1) Prime -.9% (currently 4.6%) on an Adjustable Rate Mortgage (ARM)...commonly referred to, but not exactly the same as, a variable.

2) $500 legal fee rebate on variable rate HELOCs

Of course, some of the other really big news recently, especially in markets where prices have rocketed up, is the roll-out of 30 and 35 year amortizations. These products make it much easier for people to afford larger homes and should do nothing to curb price increases. Many Canadians, being typically conservative on financial matters, are naturally scared to death. The thing I tell my clients is, however, that they can choose a 30 or 35 year amortization, but still pay it off faster. It just makes it easier to qualify for and makes the minimum payment easier to swallow if they have an unexpected expense or loss of income.

That's fantastic Gord. I always appreciate your insights.

We just had TD raise rates today. If any of you have clients that might need a pre-approval, it would be a good idea to get those applications in before the weekend to save them some money.

I appreciate this thread Gord. Thanks. Nice to see a real pro at work.

Thanks Perry! Anytime...

I'll try to find time to really keep it up to date as things transpire.

Today CIBC raised their posted rates by 20 bps. I expect that the Bank of Canada will raise the Prime rate by .25 next week. Variable rates will rise immediately or on the first of the month. Fixed rates will probably go up within 3 weeks.

Housing prices went up 29.6% between April 2005 and April 2006 with 5.5% just in March 2006 alone.
Appraisers are having a tough time keeping up with rates. I just got an appraisal in on a clients home for $260,000. A similar home a block away just sold last week for $300,000. There are buyers out there who are offering $20,000 above the list price just to outbid any other buyers.
New home builders are now selling homes for July 2007 occupancy. They are not even certain that they will have them ready for that date.
In order to get a realtor in Calgary to work with you you now need a pre-approval from a lender. They will not waste their time on unqualified buyers.
This market is hot.

I just had word from a client and a reliable source that one of the builders here in Edmonton canceled 36 signed contracts in the past month...including one for one of my clients.

They're using any excuse in the book to re-sell these at a higher price. The builder (whose name I won't mention) canceled the deal because there was a 'condition' listed on the 'conditional mortgage approval'...even though the client removed their condition of financing a month ago.

The lawyers are going to start licking their chops I'm sure.

I find some lenders like to create new document requirements on the day of closing. I like the insights on this thread.

Cheers.