Interest rates: Signs of anxiety

Globe and Mail- Banks are driving up mortgage rates much faster than anticipated, sparking a massive outbreak of confusion among consumers.

It’s an outbreak that has a high degree of contagion – advice from well-meaning friends, relatives or colleagues often seems to make the symptoms worse.

Part of the problem, experts say, is that every borrower’s situation must be evaluated individually.

For instance, it makes sense for a chef with little retirement savings to lock in the cheapest rate going. But that could be a bad move for a Bay Street financier who might want to pay down a chunk of her mortgage when she gets her bonus next year.

One of the cheapest long-term fixed mortgage rates right now is Bank of Montreal’s discounted five-year fixed-rate mortgage. But it comes with strings. Customers who sign on must agree to a term of 25 years or less, and their prepayment options are limited. The only way to break the mortgage is to sell the house…

Interest rates: Signs of anxiety – The Globe and Mail

Should you be concerned about new mortgage rules?

The Gazette- As of April 19, home-buyers will have to meet tougher standards to get a mortgage. Among the new rules is a requirement that borrowers be able to afford a five-year, fixed-rate mortgage,

even if they plan to stay short and variable. It will also be tougher for speculators to jump into the market as they’ll now have to make a 20% down payment on any property they don’t live in.

For those of us who simply own a home as principal residence the new rules don’t mean much. The real question is whether today’s tempting variable-rate mortgages offer a good value. The short answer is, they aren’t. After the U.S. Federal Reserve raised its discount rate a quarter point in mid-February, the writing is on the wall: Interest rates are about to rise, so you better lock in to a fixed term quickly, ideally before July…

Should you be concerned about new mortgage rules?

Should I be concerned about Ottawa’s new mortgage rules?

Financial Post- As of April 19, home-buyers will have to meet tougher standards to get a mortgage. Among the new rules is a requirement that borrowers be able to afford a five-year, fixed-rate mortgage,

even if they plan to stay short and variable. It will also be tougher for speculators to jump into the market as they’ll now have to make a 20% down payment on any property they don’t live in.

For those of us who simply own a home as principal residence the new rules don’t mean much. The real question is whether today’s tempting variable-rate mortgages offer a good value. The short answer is, they aren’t. After the U.S. Federal Reserve raised its discount rate a quarter point in mid-February, the writing is on the wall: Interest rates are about to rise, so you better lock in to a fixed term quickly, ideally before July…

Should I be concerned about Ottawa’s new mortgage rules?

Loophole may help banks to lend to first-time buyers

Financial Post- There is a small loophole in the new federal mortgage rules that could make it easier for the banks to lend out money to first-time buyers.

The federal government announced last month new requirements for anyone borrowing money for a house and needing mortgage insurance. If you have less than a 20% down payment and are borrowing from a financial institution covered by the Bank Act, you have to take out mortgage default insurance, which ensures the banks are covered for any losses resulting from payment defaults.

For principal residences, the new rules force consumers to qualify for a loan based on being able to make payments on a five-year fixed-rate mortgage, which has a much higher interest rate than variable mortgages, now as low 1.85%…

Loophole may help banks to lend to first-time buyers

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