After scanning over my blog I realize we are on a lot of great mailing lists. Getting news from industry leaders is crucial to staying on top in any business. It's what separates savvy investors from "flying by the seat of my pants" investors.
One mailing list we are so grateful to be on is Garth Chapman's of Jencor Mortgages and Remasoft. Garth is a wonderful mentor to us and has helped us streamline our investments to both our and our joint venture partner's benefits. He knows real estate investing from all angles, as a successful investor, from developing a software system specifically for investors and as a mortgage broker.
An excerpt from his last mail-out:
"Here is a nice simple explanation of how fixed mortgage rates are tied to bond rates – and how to predict when they might be headed up or down.
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Canadian 5 yr bond yields -.03bps to 2.73. The spread, based on the MERIX 5 yr rate published of 4.34% is 1.61. Just as a reminder, the floor and ceiling rates suggest the “comfort zone” (currently between 1.35% and 1.55%) where lenders want the spread to be.
Canadian 5 yr bond yields -.03bps to 2.73. The spread, based on the MERIX 5 yr rate published of 4.34% is 1.61. Just as a reminder, the floor and ceiling rates suggest the “comfort zone” (currently between 1.35% and 1.55%) where lenders want the spread to be.
If the “Rate Barometer” (which is the spread between the fixed 5 year rate and the 5 year bond yield) stays within the floor and ceiling range, then you likely won’t see a rate change. If the spread, dips below the floor for extended periods (over a week), then expect a rate hike.
And likewise, if the spread remains above the ceiling rate, expect a rate drop in the near future.
The yield, rate of return on your bond, can be read through a yield curve, which is the pattern of yields on bonds. This increase in bond yield is something to watch.
If the bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise. Ideally lenders are looking for a spread between 1.35 and 1.55."
My son is getting bigger everyday. He's sprouted two teeth and loves to crawl all over the furniture. My worries have gone from, "Why is he crying all the time?" to "Why is he so quiet... What's he up to?"
I'm on Peter Kinch's mailing list because you never know when you'll need a top quality mortgage broker and you can never get enough insight into mortgage interest rates.
Here is a recent mailout:
In case you missed it the following is a copy of the interview between Peter Kinch and Russell Byth that aired Sunday, November 1st on News 1130
Thanks Pete, something to keep an eye on. In the business centre, I'm Russell Byth.
Last week, actually about 10 days ago I went shopping. I was looking for a gift for my friend's daughter's birthday. I walked into this very stylish downtown mall and was greeted by... Christmas music!<!--EndFragment-->
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