Fixed mortgage rates have decreased, along with the maximum rate for our RateCapper Mortgage. There was no change to RBC Prime.

• Changes in Posted Rates
• Six-month convertible 4.95 per cent           (decreased by 0.10 per cent)
• One-year closed 3.70 per cent           (decreased by 0.10 per cent)
• Two-year closed 4.05 per cent           (decreased by 0.10 per cent)
• Three-year closed 4.60 per cent           (decreased by 0.15 per cent)
• Four-year closed 5.64 per cent           (decreased by 0.10 per cent)
• Five-year closed 6.10 per cent (decreased by 0.15 per cent)
• Seven-year closed 6.95 per cent           (decreased by 0.10 per cent)
• Ten-year closed 7.10 per cent           (decreased by 0.10 per cent)
• RateCapper Maximum Rate 5.50 per cent           (decreased by 0.375 per cent)
• RBC prime 2.25 per cent           (no change)

Roberta Melik I Mortgage Specialist I Royal Bank of Canada
T. 780-418-7208  F. 780-418-7219
Edmonton & Area
Website: http://mortgages.rbcroyalbank.com/roberta.melik

coming sooner, Carney says

Bank of Canada governor worried about inflation

Wednesday, March 24, 2010

Bank of Canada governor Mark Carney gave his most explicit warning to date that higher interest rates are coming, and perhaps sooner and higher than previously thought.

The bank governor has always maintained that his promise to keep interest rates at historic lows was contingent on inflation remaining tame, but Wednesday issued a clear alarm that he is worried about prices.

And in a speech before the Ottawa Economic Association, he underlined just how qualified his commitment to keeping the policy rate at 0.25 until at least July has become.

“This commitment is expressly conditional on the outlook for inflation,” he stressed.

Carney also noted that core inflation, the measure the bank uses to judge underlying price pressures, has been “slightly firmer” than projected.

Last week’s Statistics Canada report that core inflation — which excludes volatile items such as energy — had peeked above the bank’s 2% target to 2.1% in February likely was the last piece of evidence Carney needed to start publicly worrying about inflation. Read the rest of this entry »

February 16, 2010

Jim Flaherty, Canada’s Minister of Finance, announced new lending guidelines for CMHC backed mortgage loans in an announcement earlier today.

The new rules are as follows:

1. All borrowers must qualify for a mortgage using the five year fixed rate regardless of the term chosen.  Example:  if you wish to take out a 1 year mortgage at 2.65% you will still need to qualify at the 5 year closed rage of 3.89%.

2. When refinancing a home, Canadians will only be able to refinance up to 90% of the value instead of the previous 95%.

3. If you want to purchase a revenue property, CMHC will no longer insure you.  You’ll need to put 20% down to take out a convential mortgage.

These changes come into effect April 19, 2010.

What HAS NOT change:
-> You can still purchase a property with 5% down!
-> You can still do a 35 year amortization!
-> You can still have GDS/TDS ratios up to 44% if you have a credit score over 680!

All information presented in this notice is believed to be true and accurate at the time of printing but is not guaranteed to be so.

 Hello – The PropertyFusion Team has been watching the recent news regarding the devastating earthquake in Haiti.  We thought we’d pass along some information about helping to feed the Haitian survivors.   We would like to pass along the following opportunity to help.  

As many of you know, Sharon and Kim are involved with a new business venture in NuSkin. Through all that is happening, they have recently found out that NuSkin has two amazing charitable foundations – who are both now helping in Haiti.  1) Nourish the Children and 2) Force for Good Foundation. Read the rest of this entry »

Source: Yahoo Finance
What do you all think about what Mr. Kioyaski has to say?

http://finance.yahoo.com/expert/article/richricher/211091;_ylt=Auf82MjK3eqhkP2irW.HiSuER4V4;_ylu=X3oDMTFidHI0c3VuBHBvcwMxMwRzZWMDYmxvZ0luZGV4Q2h1bmtzBHNsawMyMDEwdGhlYmVzdG8-

Robert Kiyosaki Why the Rich Get Richer

2010: The Best of Times or the Worst?

“It was the best of times. It was the worst of times.”   
– Charles Dickens

Is the recession over? Are happy days really here again? Paraphrasing Dickens, my answer is, “For people who are prepared, 2010 will be the best of times. For many, 2010 will be the worst of times.”

The following are a few of my predictions and reasons behind them…

Prediction #1:  The real estate market will crash again.

Pictured above is a graph of mortgage resets. In simple terms, a mortgage reset is when a mortgage comes due. In normal times, refinancing was a simple process…but these are not normal times. Some points of interest:

1.  In September 2008, the mortgage resets hit $35 billion that month. That was the exact time the financial crisis hit. When people could not afford to refinance and began to default, the stock market and banking industry crashed. 

2.  The eye of the storm: In the summer of 2009 mortgage resets were low — around $15 billion a month. This is when optimists began to see “green shoots” in the economy. The green shoots were the eye of the storm.  In 2010, as I see it, the second half of the financial hurricane hits. By late 2011, the resets climb to nearly $40 billion a month. The storm will not end until 2012.

3.  The first half of the storm was primarily due to subprime defaults. The second half of the storm will hit more solid homeowners. The question is, can they weather the storm? Will Mac Mansion foreclosures be next?

4.  In America, there are over 40 million people who own more than two homes. Can they afford to carry and refinance two or more mortgages?

5.  Since home values have gone down, many homeowners will find they owe more than their home(s) are worth. Will the bank be kind to them?

6.  The time for using your home as an ATM is over. This is crushing retailers and retail real estate. Shopping centers are in trouble. Strip malls are empyting as shopkeepers close — permanently. This will lead to the crash of the office, warehouse, and other commercial properties.

My prediction:  Obviously these are the best of times if you are a buyer of distressed properties and the worst of times if you are a seller.

Other things I am watching for in 2010:

1. Will China crash? America’s crash has hit China in the gut. The Chinese are laying off millions of workers. Only massive government bailout is keeping the economy afloat. The Chinese boom will eventually go bust…but will it bust in 2010? Only time will tell.

2.  When America stopped importing from China, China stopped importing from the rest of the world. This affects Asian countries as well as Australia, Brazil, and other suppliers of raw materials.

3.  Fed Chairman Ben Bernanke is replacing toxic debt with new debt. By protecting his friends in the mega-banks, he is turning the U.S. into a zombie nation. The recession is over, but America is entering an era we will be calling The New Depression, a period when the rich become extremely rich but everyone else becomes poorer. Taxes will kill anyone working for a paycheck.

4.  The U.S. dollar will grow weaker. If the dollar strengthens, we will have more unemployment because our goods become too expensive and we will export less. 

5.  The deficit will increase.  The bailouts for the rich are killing the economy.

6.  Israel may attack Iran. Israel will not tolerate Iran developing nuclear power, even if Iran claims it is for peaceful purposes. If there is an attack, oil prices will go through the roof. 

7.  Dead cat bounce. The current stock market rally will probably turn into a dead cat bounce. If the Dow drops below 6500, 5,000 may be the next stop.

The Best of Times

I know I sound painfully pessimistic. I know my predictions are bad news for most people. Yet, for others, bad news is good news.

The following are the bright spots for people who are prepared. Read the rest of this entry »

RBC HOME EQUITY MARKET NEWSLETTER

Making sense of mortgage rates in today’s economy

Many prospective homebuyers are wondering what has happened to mortgage rates in 2009, and where they may go from here. RBC Economics Research recently updated its’ outlook, and here is what the group has to report.

Since hitting a low in January of 2009, longer-term interest rates have trended higher with the move accelerating in July. The prospect that the worst is over for the global economy is giving investors the confidence to venture out of low-return fixed income securities and seek higher risk investments.  While we expect many bumps on the road to recovery we still see potential for a very modest decrease in long-term rates in the final quarter of this year.

Outlook for the future

Momentum in the global economy appears to be changing. Leading indicators currently point to the end of economic contraction for the industrialized world in the third quarter of 2009. Stimulus from central banks, combined with government fiscal stimulus packages, is expected to support a fledgling recovery that is forecast to build momentum in 2010.

Read the rest of this entry »

In support of the Breast Cancer Foundation and 91.7 The Bounce, Sharon Gregresh and her team at PropertyFusion.ca would like to extend their support to the Bras Across the Bridge campaign. Please drop off any new / old bras to our location at 60B 161 Liberton Drive, St. Albert. We’ll make sure they get to THE BOUNCE.

For every bra donated, 91.7 THE BOUNCE will donate $1 to the Canadian Breast Cancer Foundation.*up to $5,000. The goal – collect enough bras to make it from one end of the High Level Bridge to the other! On Friday, October 30th, the Pepper & Dylan morning show will gather at the High Level Bridge to see if our goal has been reached. If you would like to volunteer and help The Bounce on Friday, October 30th please contact Sarah Gardener in the Bounce promotions department.

Homebuyer confidence creates record real estate results

At the mid-point of the year, the REALTORS® Association of Edmonton is confident that the local real estate market has regained stability. The 9,741 sales of residential properties sold through the MLS® System in the first six months surpassed the six month year-to-date figure for last year (9,567) and residential sales in June set a new record for the month. Residential sales in June totalled 2,552 units which surpassed the 2007 record of 2,203 units sold and was the third best month for unit sales in MLS® System history.

“Buyer confidence, especially among first time buyers, was evident in Edmonton despite lingering economic concerns in other markets,” said Charlie Ponde, president of the REALTORS® Association. “When mortgage rates looked like they might start to rise, many potential buyers locked in lower mortgage rates and then went searching for a qualifying home.” Read the rest of this entry »

Gen X to flex new purchasing muscle
in recreational property markets across Canada, says RE/MAX

Demographic shift underway in 74 per cent of markets surveyed
Kelowna, BC (June 2, 2009) — Generation X purchasers are poised to replace aging baby
boomers as the major force in recreational property markets across the country, according to a
report released today by RE/MAX.

The demographic shift was noted in the 2009 RE/MAX Recreational Property Report
highlighting sales, pricing, trends and developments in 50 Canadian markets. The report found
demand from Gen X (those born between 1965 and 1980) has nearly doubled over one year ago.
Seventy-four per cent of markets surveyed this year reported a marked trend toward thirtysomething
buyers snapping up affordably-priced product, ranging from waterfront cottages to
resort condominiums, compared to just 40 per cent in 2008.
“Much of the activity in the marketplace today has to do with the mindset of this particular
generation,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada.
“More important than the investment aspect is the commitment to lifestyle. The purchase of a
waterfront home or a condominium is more than a simple transaction to Gen X purchasers –
owning a recreational property underscores their dedication to family and balance.”
The financial strength of the cohort dovetails well with current market realities. Sixty-six per cent
of recreational property markets surveyed reported a decline in the number of recreational
product sold in the first four months of 2009, while 22 per cent indicated sales were either up or
on par compared to one year ago. While the combination of inclement weather and a global
recession clearly hampered sales activity earlier in the year, many major centres are currently
experiencing an upswing in activity as the traditional cottage season gets underway.

“After being priced out of most markets for the better half of the last decade, Gen X purchasers
now have the financial wherewithal to buy recreational product at virtually every price point,”
says Michael Polzler, Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic
Canada. “Gen X is ideally positioned to pick up any slack in recreational property markets caused
by softer demand from baby boomers and retirees. They represent the next wave of recreational
property owners in Canada and they know it.”

The time to buy has never been better. Read the rest of this entry »