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Greetings to all and a warm Welcome to New Subscribers.
Please click here to read this safety awareness bulletin to protect yourself from dishonest people... And I always recommend doing a check on your own personal credit (www.Equifax.ca). I also check a copy of their land titles at the local registry office. (where you get your drivers license)
Canadian mortgage rates up as cost of borrowing on bond market rises
TORONTO (CP) - Canadian mortgage rates are headed higher in the wake of rising borrowing costs in the North American bond markets.
The changes, effective Thursday, mean a one-year house loan at CIBC rises 0.35 of a percentage point to 4.95 per cent; a two-year term jumps 0.45 of a point to 5.5 per cent; and a five-year mortgage jumps a fifth of a point to 6.25 per cent.
The increases reflect the rising cost of borrowing in the bond market, where investors are demanding higher rates because the rebounding U.S. economy is rekindling inflationary pressures.
Now for the good news... our economic strength and the interest rate forcast is to stay stable.
Over Half a Million Households in Six Major Centres Intend to Buy a Home in 2005
OTTAWA, March 7, 2005 — Over 570,000 households in Halifax, Montréal, Ottawa 1, Toronto, Calgary and Vancouver, are thinking of buying a home this year, according to the Consumer Intentions to Buy or Renovate a Home survey from Canada Mortgage and Housing Corporation (CMHC). This represents an average of 12 per cent of all households in those cities.
Among intenders, 43 per cent 2 declare that they are ready to buywithin the next twelve months, while 38 per cent declare that they have a 50/50 chance of buying and 18 per cent declare that their chances of buying are lower. The survey is conducted using a sample of approximately 4,000 households per city.
"Consumer intentions across the six major markets remain positive, with more than one in ten households thinking about buying a home this year", said Bertrand Recher, Senior Economist at CMHC. "Intentions to buy are down slightly from 2002 (14 per cent) and 2003 (15 per cent). This year, the intentions are consistent with continued high levels of housing starts and sales of existing homes. Favourable economic conditions, such as low mortgage rates and a tight labour market are contributing factors to the positive intentions."
Home buying intentions are strongest in Calgary, Vancouver and Toronto. In Calgary and Vancouver, 15 per cent of households reported that they intend to purchase a home, while in Toronto the share was 13 per cent. Purchase intentions are slightly lower in Ottawa (12 per cent), Halifax (11 per cent), and Montréal (9 per cent).
"Home renovations will also remain strong this year, with 39 per cent of all homeowners considering undertaking renovations," said Recher. "This represents an increase over 2003 when 37 per cent of homeowners were thinking of renovating and is consistent with our forecast for continued growth in renovation spending this year".
Renovation intentions are the strongest in Halifax and Ottawa where 45 and 44 per cent of consumers, respectively indicated an intention to renovate this year. Intentions to renovate are also high in Calgary and Montréal, where in both cases 40 per cent of households indicated an intention to renovate this year. Renovation intentions are slightly lower in Vancouver (39 per cent) and Toronto (38 per cent).
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I trust this information will come in handy and help you to stay informed. One Small Saving on your Interest Rate will be worth Thousands! in the Long Term. Feel Free to call anytime…
Dan Heon
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