We are pleased to introduce Brian Mason as a guest blogger. Brian is a mortgage broker in Ottawa with mortgagebrokers.com. We will be providing a more detailed of Brian in the coming days.
Friends,
The most frequent question I hear from clients and colleagues is what type of rate is best...FIXED or VARIABLE ?!? Its a great question and one that I wish I had an absolute answer for. Historically the variable rate mortgages outperform the fixed rate in terms of interest saved for the client over the term of their payments. As a result of the record setting low interest rates we have enjoyed as of late I have been an advocate for taking a variable rate and pumping up the payments to the fixed rate in order to pay more principle, avoid unnecessary interest and increase the equity in the home. Recently however with the bond yields falling and the fixed rates doing the same (5yr fixed for 3.99%!!) the locked in rate is becoming a more and more attractive option for those customers who are a little more risk adverse. Please take a look at this article from the Financial Post which helps illustrate the point. Again, there is no right or wrong answer here but rather the opportunity to educate the client on their options and make them feel as comfortable as possible with their choice.http://www.financialpost.com/news/Variable+rate+longer/3329442/story.html#ixzz0uwQpMuYU
Sent wirelessly from my BlackBerry device on the Bell network.
Envoyé sans fil par mon terminal mobile BlackBerry sur le réseau de Bell.
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Showing posts with label prime rate. Show all posts
Showing posts with label prime rate. Show all posts
8.04.2010
7.20.2010
Prime rate hike, eco tax cut by liberals, and drips
The bank of canada has announced another increase to the prime rate today. They raised the overnight rate target to 3/4 per cent.
The ontario liberals are now looking to cut the eco tax. Public outrage has won.
Dividend Reinvestment Plan. An investment plan offered by some corporations enabling shareholders to automatically reinvest cash dividends and capital gains distributions, thereby accumulating more stock without paying brokerage commissions. Many DRIPs also allow the investment of additional cash from the shareholder, known as an optional cash purchase. Unlike with a Direct Stock Purchase Plan, with a DRIP the investor must purchase the first share in the company through a brokerage. After that, the company will take whatever dividends it would normally send as a check and instead it will reinvest them to purchase more shares in the company for you, all without charging a commission. The only drawback is that the investor has no control over when his/her money from the dividends is used to purchase new stock in the company, which means he/she might be buying new shares at sub-optimal times. also called Dividend Reinvestment Program.
Sent wirelessly from my BlackBerry device on the Bell network.
Envoyé sans fil par mon terminal mobile BlackBerry sur le réseau de Bell.
The ontario liberals are now looking to cut the eco tax. Public outrage has won.
Dividend Reinvestment Plan. An investment plan offered by some corporations enabling shareholders to automatically reinvest cash dividends and capital gains distributions, thereby accumulating more stock without paying brokerage commissions. Many DRIPs also allow the investment of additional cash from the shareholder, known as an optional cash purchase. Unlike with a Direct Stock Purchase Plan, with a DRIP the investor must purchase the first share in the company through a brokerage. After that, the company will take whatever dividends it would normally send as a check and instead it will reinvest them to purchase more shares in the company for you, all without charging a commission. The only drawback is that the investor has no control over when his/her money from the dividends is used to purchase new stock in the company, which means he/she might be buying new shares at sub-optimal times. also called Dividend Reinvestment Program.
Sent wirelessly from my BlackBerry device on the Bell network.
Envoyé sans fil par mon terminal mobile BlackBerry sur le réseau de Bell.
7.19.2010
National Post Story: What to expect from Bank of Canada
The speculation over Canada's prime rate can occur tonight. Tomorrow we'll find out if the rate will increase and if it has an impact on mortgage rates. Will this drive more people toward a fixed rate?
What to expect from Bank of Canada
Paul Vieira, Financial Post
Sunday, July 18, 2010
Bank of Canada governor Mark Carney returns to the spotlight this week as he unveils the central banks latest interest-rate decision and economic outlook
You received this email because your friend Jorge Paseda thought you would be interested in the article linked above.
© 2010 The National Post Company. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.
7.14.2010
An article from Businessweek.com
David Dukes sent you a Businessweek.com article and the following message:
Will the variable mortgage rate go to 2.75% by July 20th?
Loonie Climbs First Week in Three on Stock Gains, Jobs Growth
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