Toronto Real Estate Info

2008 is expected to be an economically sound year. Continued growth combined with lower rates should keep us out of trouble.

It appears variable mortgages will be very popular, considering that the rate can be as low as 5 per cent, and the Bank of Canada will likely lower prime again. More news to come.

Know ALL your mortgage options. The rate is only part of the equation. Pre-payment privileges, amortizations, and tax deductability also need to be considered to save money.

Conditions may vary, and are based on approved credit. (Forecast courtesy of Peter Majthenyi. Rates as of 01/08/2008. Rates are subject to conditions and may change without notice.)


TERM	POSTED RATES*	BEST RATES*


6 month	7.05%	6.25%
1 year fixed	7.40%	6.25%
2 year fixed	7.55%	6.25%
3 year fixed	7.55%	5.99%
4 year fixed	7.55%	5.99%
5 year fixed	7.54%	5.89%
7 year fixed	7.70%	6.10%
10 year fixed	8.15%	6.30%
Variable		5.10%
Prime Rate		5.75%

The privileges in the fine print are EQUALLY as important as the interest rate...the quality of your pre-payment options can dramatically effect how much interest you are actually paying. Posted rates are rates offered by the majority of Canadian financial institutions.

*Rates are provided for information purposes only and are subject to change at any time. The products listed above are available only in Canada to Canadian residents. Variable rate calculated semi-annually not in advance. Rates shown are for residential properties only and are subject to meeting all lenders credit granting criteria. Rates shown above are specific to the sender and may not be obtained through the branch network. E&OE.

Mortgage rates courtesy of Peter Majthenyi, Mortgage Architects. For more information, visit his website.

Mortgage News

Markets are volatile, but now is not time to hide
ELLEN ROSEMAN, The Toronto Star (posted 01/23/2008)

We knew this would be a tough year. But who would have predicted so much market action so soon?

Stocks are a leading indicator. So, Monday's steep decline could signal a slowdown ahead. Are you ready for a recession or a no-growth economy?

Here's advice for people at different ages and stages of life.

You're working and making RRSP contributions each year. Don't skip your annual contribution. This extreme volatility won't last forever. You can put money away for retirement without putting it into stocks or equity funds. Check out high-interest savings accounts that earn 3.5 to 4 per cent at some banks. But, remember, the Bank of Canada's quarter-point rate cut yesterday may be followed by more cuts. To lock in rates, you might do better with a guaranteed investment certificate. Several financial institutions are paying 4.5 per cent or more on a four- or five-year GIC.

There's nothing wrong with continuing to invest in equity, dividend or balanced funds – the same things you put in your RRSP before. Over the long run, they should deliver better than 4 per cent returns. If you can't stand the thought of buying funds now, you might want to switch to a system where you contribute to your RRSP every week or every month – instead of once a year. With a fixed regular amount going into mutual funds, you benefit from market swings and get more for your money when unit prices drop.

You're a stock market investor with an online brokerage account outside an RRSP. If you're calling the shots, you have no one to blame but yourself for your shrinking account value. Don't stop going online to see how you're doing. There's a tendency to hide during a market rout. Review your holdings. Do you still want to own everything you bought when the stock market was hot?

Maybe it's time to move out of stocks that depend on a strong economy. Research In Motion, for example, traded well above $100 last month and closed yesterday at $93.28 (after falling to $84 Monday). It's priced at almost 50 times earnings – that's still rich. When making adjustments to your portfolio, be strategic. Wait for days when prices drop (when buying) or prices rebound (when selling). Do things in stages, rather than all at once.

If you're retired and managing your own investments, think about getting a second opinion from a financial planner who doesn't sell products. You don't have much time to recoup losses – and you want to make sure you're not taking too much risk.

You're thinking of buying a home. Real estate often slows down when stock markets are volatile. No one likes making big purchases at a time of uncertainty. So, don't rush. Take your time and check out lots of properties. You might find sellers more willing than usual to negotiate. And if interest rates keep falling, your financing will become more affordable. That's another reason to wait.

You're renewing your mortgage. Stick with a floating-rate mortgage, if that's what you have now, since rates could come down even further. If you have a floating-rate loan with unchanging payments, you will find more of your money goes to pay off the principal when rates drop. With some floating-rate loans, the payments are reduced when rates drop. If so, you might want to keep your payment the same to pay off the debt more quickly.

Finally, pay attention. Don't leave your financial statements unopened or your adviser's calls unreturned. When you can't see what's ahead, you have to keep your wits about you at all times.

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Copyright 2003. Michael A. Reis, Coldwell Banker Platinum Realty, Canada. All Coldwell Banker offices are independently owned and operated. Powered by Look Communications Inc. and compiled by The Corporate Ninja.