INTEREST RATE DROP!!! May 23, 2008
Wow...check out these rates! They just dropped today. These are the lowest rates in over a year & better than Major Bank posted rates by close to 1.50%! Call Shaun today to lock in a great rate and shop without stress!
| Term | Rate |
| 1 Year | 5.00 |
| 2 Year | 5.40 |
| 3 Year | 5.25 |
| 4 Year | 5.35 |
| 5 Year | 5.25 |
| 7 year | 6.05 |
| Variable | Prime minus 0.60% |
Rates are subject to change without Notice. OAC. Lenders & Insurance fee may apply.
Canada vs. US market
Does the US mortgage crisis have you nervous about entering the Canadian housing market? There are major differences between the Canadian and US markets and here are key points to highlight:
- Canada's mortgage default rates are much healthier (6.78% in the US vs. 2.09% in Canada).
- Much of the pain being felt in the US is a result of very aggressive mortgage products like interest only and negative amortization mortgages (which, for example, make up more than 2/3rds of California's residential mortgage market!). By comparison, negative amortization products are not offered in Canada and interest only mortgages have had a very limited take-up. Canada's mortgage industry has maintained a much higher level of standards and regulation than the US.
- Canada's debt-recovery laws are generally more lender-friendly than those prevalent in the US, which makes the current US scenario less likely to be repeated north of the border.
- The US market has seen overly aggressive competition among lenders which created a race down the credit curve. The US sub-prime market now accounts for a whopping 20% of the overall US residential mortgage market whereas the more conservative Canadian sub-prime market only accounts for approximately 5% of total mortgages outstanding.
- In general, the Canadian real estate market is much healthier than the U.S. When you combine this with CREA's view that "low mortgage interest rates, high employment, rising incomes and upbeat consumer sentiment will keep the [overall] housing market on a strong footing for the foreseeable future" we remain optimistic about the future of Canada's alternative mortgage market.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
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