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In recent years we have seen an increase in bankruptcy and consumer proposal in Canada.  Although we have not reached the heights of some other nations is this area it is still a reality of the recession we find ourselves in.  As household debt levels rise Canadian home owner find themselves in a position where they need to pay down debt or take out equity to support cash flow in the future.  Banks are other major A lender (A lender is a mortgage lender who deals primary with income and good credit score applicants) are not interested in clients with bad credit scores, bankruptcy or consumer proposal.
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The Bank of Canada kept Canada’s key lending rate at the same place it’s been for a year: 1.00%.
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A number of lenders still give borrowers 100% of purchase price funds to purchase a primary residential home.  It is called The Free Down Mortgage Program.  Up until three years ago 100% mortgage financing was widely available in the mortgage financing markets.  The Canadian Government then put the brakes on that product.   Since then Mortgage lenders have being able to find ways to give borrowers 100% of purchase price  (insured by CMHC) without breaking the 5% minimum down payment rule.  It works like this.
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Are you planning to get a new residence for your family? If you’ve been staying in a rented house, it is very natural that you must be dreaming of getting yourself a new house. Almost everyone nurtures a dream of having a home of their own.  There are many financial institutions that help a borrower materialize their dream. Most people will need to take out a mortgage loan in order to finance a residential property but always remember that a mortgage loan is the biggest responsibility on your shoulders and you must repay the loan on time to avoid any forceful repossession of your dream house.
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Interesting article I pulled from CMT today.

Money market traders are now placing odds at 60% that the Bank O f Canada will cut its Key Lending Rate by May 2012. Yes, you read that right.
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Mortgage interest rates have being dropping aggressively this week.  5 year fixed as low at 3.59% for 120 day rate hold and variable down to 2.15%.  Never a better time to get a mortgage.  If you are in a mortgage it may be a time to consider refinancing or switching your mortgage for better interest rate.    Breaking a mortgage can incur penalties however the discount in the new rate can more than compensate for the penalty.

I’m sure you’ve already read about how the US avoided default.  There was a huge rally yesterday in the bond market.  There could be movement in the fixed rates.    I will keep an eye out on bond yields.

Current 5 year fixed 120 day hold at 3.69%.  Current variable at 2.25%.  Short term variable at 2.20% matures in September 2014.  Interest rates are still historically low.

I believe this article is relevant to all sales People not just Real Estate Agents.

It is a well known fact that it is far easier to generate business from clients that you already have, than to go out and grab new ones.

This belief was supported by the findings in a recent survey,” “Successful Habits of Canadian Realtors” where Realtors indicated that repeat business has a real place in their business, with all respondents saying that at least some of their business comes from referrals and repeat business.
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Those needing financing to construct a new home may be interested to know that Scotiabank has modified its Progress Draw Construction Mortgage.

Clients now get more time to complete construction.    Homeowners were previously allowed 12 months to finish. Scotia now gives them 15 months. Payments are interest-only during the construction period to preserve cash flow.  There is no more application fee.
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As per my email last weeks the bond yields have being increasing putting pressure on the banks rates.  I expect to see a fixed rate increase sometime this week.   Get pre-approved to lock in your 120 days rate holds before rates go up.