Check out updated Toronto-area mortgage rates

I’ve just updated my blog which is devoted to best interest rates in the Greater Toronto Area.  The three best rates that have changed since the previous posting were all down, which is not what you would have expected from the media coverage.  Click here to check out today’s best rates.

Build in a contingency

I was just listening to a report on CBC about the amounts CTV/Rogers in Canada and NBC in the U.S. are likely to lose on the Vancouver Olympics. They “won” the bidding when the economy was going full steam, but have had to sell their advertising in the current market.

What does this have to do with mortgages? It’s a reminder to live within your means, and take into account unlikely but possible cash-flow-adverse events, such as pregnancy, strike/lockout, down-sizing. (And even if the latter two don’t apply to you, if your neighbours undergo these events, it will probably affect the real estate market, at least for a while.)

While some people suggest you go for the biggest possible mortgage, I would suggest you be more conservative. If you have extra money, apply it to your mortgage, but don’t be house (mortgage) poor.

Russ Skinner | Mortgage Agent
Agent Licence #: M08008443
CENTUM National Mortgage Loans Inc.
Brokerage Licence #: 10855
mail: 34 Eglinton Ave. W., #102, Toronto, ON M4R 2H6
office: 2050 Sheppard Ave. E., #210, Toronto, ON M2J 5B3 (**by appt only**) Cell 416-728-2298|Home off: 647-477-3826| E-Fax: 416-352-1659 Blackberry PIN: 21120937
russ_skinner@centum.ca
www.centum.ca/russ_skinner
Blog: http://gtamortgagecentre.wordpress.com

Some rates changed today

Just received e-mail notification that our rate through one of the big banks have changed. The rates for each of 3-, 4-, and 5-year fixed mortgages are down 0.1%. The rate for 1-year fixed mortgages are up 0.14%. And their 5-year variable rate is up 0.10% (back to prime).

The bottom line: rates are still incredibly low. Contact me about your situation. (And now, back to the seminar I’m attending.)

Russ Skinner | Mortgage Agent
Agent Licence #: M08008443
CENTUM National Mortgage Loans Inc.
Brokerage Licence #: 10855
mail: 34 Eglinton Ave. W., #102, Toronto, ON M4R 2H6
office: 2050 Sheppard Ave. E., #210, Toronto, ON M2J 5B3 (**by appt only**) Cell: 416-728-2298 Direct Line: 647-477-3826| Fax: 416-352-1659 Blackberry PIN: 21120937
russ_skinner@centum.ca
www.centum.ca/russ_skinner

Sometimes monitoring isn’t enough

There was a short article in today’s Financial Post (p. FP4) which intrigued me. “Avis Budget Group Inc. and … Enterprise Holdings Inc,” “which operates the Enterprise, Alamo and National brands,” have removed the Toyota models recalled by the manufacturer from their fleets. For Avis the Toyotas are “a small percentage” of the fleet; for Enterprise, they are 4% of their fleet.

Then there is Hertz Global Holdings Inc., which “hasn’t pulled any cars but is monitoring the situation.” (How does a company remotely monitor faulty gas pedals?) The next line may well contain the rationale: “The company’s fleet … is about 20% Toyotas.”

I’ve (recently) driven a rented Toyota (not from any of the above companies), without any gas pedal issues, but think Hertz is in the wrong lane on this issue.  I think their customers deserve more.

Toronto mortgage rates just updated

Toronto mortgage rates as of noon, today.

Interest rates may stay low until mid-2011

This blog posting from the Financial Post deserves some attention paid to it, I think.  Makes a good case for why rate increases are far from imminent.  Now, if the economy improves more quickly than anticipated, things may change, but interest rates are unlikely to go up until the spare capacity gap is closed (or almost so).

3 of 4 “Done Deals” homes sold over asking

The Globe Real Estate section is back from a 3-week holiday hiatus, and I was interested to check out the “Done Deals” feature.  While it is far from a trend, I did note that three of the four transactions listed sold for over asking price.  Also interesting was that three of the four (including the one that sold under asking) sold within a week.

Looking at the numbers a little closer, it was interesting to me that the ratio of selling price to asking price was higher the lower the asking price.  The house that was listed at $399,000 sold for $461,000, or 115.5% of asking.  The other three houses,in format asking price, percentage of asking price, days on market:

$599,000    102.7%    29 days

$868,000     100.2%      6 days

$1,298,000    90.8%       6 days

(In case you’re wondering, I have a spreadsheet set up for this, and punch in the numbers on Fridays.  ”Math nerd? Moi?”  I intend to publish the numbers weekly, and to do something similar with the Star‘s similar Saturday feature.)

Draw your own conclusions, but if your decision involves a mortgage, keep me in the loop.

Russ Skinner

647-477-6826

gta_mortgage_centre@rogers.com

Article on “7 Things a buyer needs to know”

Good overview by Carolyn Ireland in today’s Globe Real Estate in The Globe and Mail.  The seven points she covers (many of which have already been addressed here) are, following her numbering:

1. Brace for higher interest rates
2. Anticipate an HST fury [takes effect July 1st]
3. Choose whether to sell first or buy [for existing owners]
4. Look for a robust crop of new listings in the spring
5. Use timing to your advantage
6. Focus your search
7. Learn the term “debt-to-income ratio” [there are actually two, not one, that is taken into account]

For more information, you might want to take a look at two special reports I offer.  The first is the Ultimate Home Buyers’ Kit; the other is “15 Mistakes Home Buyers Make and How To Avoid Them.” Just click on the link(s) to send me an email requesting the report.  (For a complete list of currently-available reports, click on this link.)

That’s it for this report from your personal Toronto mortgage guide, Russ Skinner.  You can call me at 647-477-3826, or email me with any questions/comments.

Paid workout time

“Winnipeg’s police chief says there would be fewer officers on the streets if he caves to union demands for paid workout time. The police union is calling for the city to give officers time during shifts to work out in the gym, something that is done in Calgary and Victoria.” – Canadian Press story (in full), today’s Metro (Toronto edition), p. 10

Paid workout time (Update and apology)

Not sure why this posting went live twice.  I had sent it from my BlackBerry, using the email to post function.  Apologies; I hope it won’t happen again.

“Winnipeg’s police chief says there would be fewer officers on the streets if he caves to union demands for paid workout time. The police union is calling for the city to give officers time during shifts to work out in the gym, something that is done in Calgary and Victoria.” – Canadian Press story (in full), today’s Metro (Toronto edition), p. 10