Kitchener Waterloo Mortgage Source

Kitchener Waterloo Housing Board - October 2010 Sales Report

The Kitchener Waterloo Housing Board reported a decrease in residential home sales in October, however went on to state that sales so far this year reached the 2^nd highest level in the history of the area. Specifically, sales grwoth declined 22.4% in October compared to the same period last year. This said, Ted Scharf, President of the Kitchener Waterloo Real Estate Board mensions that sales data comparisons should be considered with care. He pointed out that the Kitchener Waterloo market last October was in the midst of a stronger rebound and that the Board still reported a 1.9 percent increase in actual sales over last year. Affordable mortgage payments and low mortgage rates in Kitchener and Waterloo contributes to the sustained growth in the area.

Home sales in the Waterloo Region last month totaled $134,352,425 and was comprised of 288 detached homes, 93 condominium units, 35 semis, and 26 townhouses. More specifically, pricing of homes sold in October increased by 14.3 percent when compared to this time last year. As demand continues to sustain, and mortgage rates remain steady, real estate in Kitchener and Waterloo will return to a steadier, less volatile market.

For low mortgage rates and and mortgage excellent servie, visit my site or contact me today! www.brentrichardson.ca

CMHC Spring 2010 Housing and Mortgage Report: Kitchener, Waterloo, Cambridge and Guelph

The Spring 2010 CMHC Housing Report for Kitchener, Waterloo and Guelph forecasts that sales will continue at a strong pace before moderating later into 2011. New home construction will increase in 2010. Housing demand in this year will be supported by low mortgage interest rates, population growth and a strengthening job market. The resale market in both these regions will be very strong this year with sales of existing homes in Kitchener and Waterloo increasing to 9%, while homes in Guelph will show an increase half of Kitchener’s rate. The report speculates that, in 2011 sales will decline in Kitchener, Waterloo and Guelph due to increased mortgage rates and the introduction of the HST. This said, mortgage rates will be dependent on several economic factors, and low rates could very well help support housing prices into 2011. It should be noted that the HST will not affect the prices of resale homes.It is forecasted that new listings of resale homes will go up in Kitchener, Waterloo and Guelph in 2010 and will continue to remain at the same high levels in 2011.

With market conditions favoring sellers, more homeowners are deciding to list their homes for sale. This should continue in the first part of the year but will return to more balanced conditions in the latter part supporting a slower pace of price appreciation. Moreover, there will be a greater proportion of higher priced homes in Kitchener, waterloo, Cambridge and Guelph as move up buyers will favor homes in the higher price range. This growth, however, will slow down in 2011. Both single detached and higher density housing will show growth this year. If mortgage rates in Kitchener, Waterloo Guelph increase in 2011, there will be a slide in the resale market. In the Kitchener – Guelph area single detached housing starts will increase in 2010. Many homeowners have brought forward their home purchases fearing price rise with the introduction of the HST and higher mortgage rates. However with low mortgage rates new homes remain price competitive. Higher demand for new home construction will push prices further higher than they are. Construction will also increase for semi detached homes, townhouses.

Apartments starts will increase in Kitchener, Waterloo and Guelph due to an increase in demand for condominium apartments. Construction of other low rise housing types will also perform well in 2010. The economy is slowly recovering along with the job market. Employment in the Kitchener area is forecast to increase by 1% while that in the Guelph will increase by 2%. There is significant population growth in both these areas driven by organic labour increases, as well as migration. Of special interest, the areas diverse economy with solid employment rates has brought increase in international migration.

At the time of writing, the overnight Bank of Canada rate had fallen to 0.25 %. With the expectation of it to increase in the coming months mortgage rates have begun to rise. Posted mortgage rates are expected to increase in late 2010 given a rebounding economy. mortgage rates could increase faster if the economy recovers and or could subdued if the recovery is slower than expected.

Money Saving Mortgage Stratagies and Planning

Often there is a great deal of emphasis placed on one mortgage product, such as the 5 year fixed or variable. And in most cases, once a mortgage has been closed, many clients are left to go about paying for their mortgage as per usual. It is important though to take a step back and look at the bigger picture when deciding who your mortgage partner is, and when signing up for a new mortgage or mortgage term. It is important to look at different mortgage strategies, and to consider a mortgage plan. Both can save you considerable amounts of money.

It will be very valuable for you to partner with a good mortgage agent or broker, and to review some of the many mortgage products and solutions available to find what mortgage strategy would work best given your comfort level, needs and goals. For example, it may be better to take an ultra low rate three year mortgage term and then look at a couple very low rate one year terms when the 3 years is up. This kind of strategy could very well save a client thousands of dollars over a traditional 5 year rate. Perhaps a lower rate three year variable mortgage or a 50/50 fixed and variable mortgage could be best for you. Or maybe a good 5 year mortgage and rate is the most comfortable way for you to go. Ultimately, there are many strategies such as these that could apply to you, and could save you thousands of dollars in interest. It is important when dealing with such a large sum of money to know what products are out there in the market, to know your options, and to work with a good broker to help construct your ideal mortgage strategy.

Mortgage planning involves pre determining a more advanced mortgage repayment structure, that leaves you with a comfortable lifestyle, and that will have your mortgage paid off years sooner and for many thousands of less interest. No matter how good your mortgage strategy and rate may be, there is always room, given a good mortgage plan, to easily save much more. Publications such as my book, 'Your Mortgage, Your Life' are designed to help make the mortgage planning process as easy, and as enjoyable as possible. My book makes planning and saving easy because everything is automatic. The savings come from areas of spending that will not negatively affect your lifestyle, and that are most easy to implement. Once the savings are uncovered, the extra money is automatically put away every mortgage payment period. So in the end, clients notice no change in lifestyle (if anything, an improvement in lifestyle!), and can be confident that they are saving thousands of dollars more in mortgage interest. And of course, plans are completely personal, and custom to each situation.

By working with a knowledgeable and experienced mortgage professional, you can attain your best possible, low cost mortgage strategy and plan.

Contact me, Brent Richardson, at your convenience for questions, or feel free to leave a comment below.

Regards, Brent Richardson www.brentrichardson.ca - brent@brentrichardson.ca   

DANGEROUS Credit Lines and Mortgage Products Offered by Banks

Over the past several years, some of the Big Banks have decided to design mortgage products that lock customers into their Bank- even when the mortgage comes up for renewal. The really unfortunate part about these Banks and products is that in most cases, the Bank will not disclose the negative information to its clients. Most in the broker industry consider these practices incredibly decietful.

With titles such as 'Step' or 'Homeline', these mortgages will offer a line of credit that is attached to the mortgage. The main issue is that when the Bank registers one of these products against your house, they register it under what is called a 'Collateral Charge Term' (not the usual 'Standard Charge Term') at 125% of the value of your home. This has the affects of:

• Disallowing any other financing to be placed against your home.
• Locking you in at mortgage term renewal. This gives Banks massive liberties to charge unfavourable rates when your term is up.  
• Charge major penalties to ever exit these products and lowers others abilities to compete for your future business.
• The ability to change their bank prime rate without your consent. For example, the Bank can decide, as they did in 2008, to move up credit lines across the board by 1% in 1 day. 

No wonder Banks call these products 'customer retention devices'. Good mortgage brokers will always fully disclose such information whereas most of the time, Banks have not been reporting this kind of information to thousands of customers. It is potentially costing customers $10,0000's each. Indeed, customers should be retained by providing excellent service, value and a good customer experience. There are many excellent mortgae products in the market that can meet your needs and goals, and give you the low rates and long term flexability that is far more desirable.

Questions? Comments? Feel free to contact me any time or leave a post below.

Best Regards,

Brent www.brentrichardson.ca - brent@brentrichardson.ca