What Will Happen To Rates part 2.

What Will Happen To Rates part 2.

Bank of Canada Governor Mark Carney already has been predicting that rates will be going up, and for Canadians to brace for it. After months of speculation, a .25 bps hike was inevitable. Being the 1st nation to lead a fiscal policy change is never easy, as all other G20 nations are holding steady. However, as the summer continues, a .75 rate hike is priced in but not a “slam dunk” as David Rosenberg said in today’s morning economic summary. Breakfast with Dave - June 17th 2010

In another economic report by BMO Capital Markets, it was found that 84% of the time, rates move by .25 points, rate changes happen in clusters, pauses are expected, and a 200 basis point is not unexpected over 18 months as has happened in the past.

So what to do? when I was asked by the Globe in March, I made it clear: have a good plan. I still hold that sub 4% rates are worthy of locking in, otherwise variable is a best bet moving forward.


June Blog 1 - Welcome Back

June blog 1 – Welcome Back

So after an unfortunate biking accident, I had to take some time off to recover.  After 2 weeks of bed rest, I am back at work and it feels great. Lots has changed but first I would like to cover something else: me! A post in one of Canada’s leading mortgage blogs http://www.canadianmortgagetrends.com covered a top ten wishlist of their preferred broker.  Here is their list:

1.Be licensed in the industry over two years
Experience is so crucial in this business. It just avoids so many headaches. New brokers are very eager to please, but if a newbie is going to make a mistake, better that it be on someone else’s file.

2.Have closed at least $10 million of mortgages in the last 12 months
Tenure alone doesn’t afford experience. Deal volume does.

3.Have “status” at a minimum of three lenders
For better pricing and faster lender turnaround

4.Know the pros and cons of major mortgage products outside the broker channel (like those from RBC, BMO, and Manulife).
So they can advise us objectively.

5.Reply to emails in 8 business hours
Who’s got time to wait?

6.Return phone calls the same day

7.Have a decent professional web presence
Brokers who take pride in their marketing are usually fairly competent in other parts of their business

8.Diversify their deal submissions
And not send over 40-50% of their volume to any one lender. Otherwise, their objectivity could be impaired. (An exception is if they specialize in a mortgage that one particular lender offers.)

9.Recommend the ideal term and explain the reasoning in plain language.
And show us a…

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