No Bank of Canada Rate Change For The 11th Consecutive Meeting

With weaker outlooks for Europe and the U.S., the Bank of Canada announced earlier today that it is keeping its key policy rate steady, exactly where it's been since September 2010, which makes this the longest recorded rate pause.

In its statement the Bank noted that "the recession in Europe is now expected to be deeper and longer than the Bank had anticipated", and that the "U.S. recovery will proceed at a more modest pace going forward." The Bank noted that while the Canadian economy "had more momentum than anticipated in the second half of 2011, the pace of growth going forward is expected to be more modest than previously envisaged, largely due to the external environment."

The prime rate at most lenders will stay at 3.00%, which means those with variable-rate mortgages will not see their payments change and will continue to enjoy historically low rates. New variable rate mortgages are available to qualified borrowers at Prime minus 0.10%.

The Bank's next rate decision is scheduled for March 8.

And while not related to the prime rate, it is worth noting that fixed mortgage rates are near all-time lows, with 4 and 5 year mortgages available at rates that are close to variable-rate pricing.

If you would like to review your options, please let me know.




Rick Moran, AMP #M08001997

Understanding your credit report and credit score – Part 1

What many prospective borrowers don't realize is that the pricing of mortgages and other loans is based in part on their credit-worthiness. Consumers need to be aware of how their credit is evaluated by lenders, and how they can work to avoid so-called "bruised credit" – people with a lower credit score can find themselves paying a higher interest rate, or even denied access to certain types of loans.

A credit report is a detailed history of how consistently you meet your financial obligations, and provides a picture of your financial health based on your past behaviour. A credit score is a three-digit number, usually between 300 and 900, representing your overall credit-worthiness, based on personal information from your credit report and other sources.

Both your credit report and score are important. When deciding whether or not to grant a mortgage loan, lenders refer to an applicant's credit report and score, along with a range of other factors such as income, employment history, and size of down payment.

The higher your score the more likely you are to be approved for a mortgage and receive favourable rates because the lender considers you to be a better credit risk. Several factors are used by the two main credit agencies in Canada (Equifax Canada and TransUnion Canada) to calculate credit scores:

Debt payment history.
Amounts owed compared to your current credit limits with lenders.
How often you seek new credit.
Length of time you have had credit accounts.
Type of credit, such as car loans, lines of credit, credit cards.


Rick Moran, AMP #M08001997

MORTGAGE PLANNING 2012

Consider a mortgage check up in the new year

As we begin 2012, consider getting a mortgage check up in the new year to make sure you have the best mortgage strategy for meeting your financial goals.

A personalized mortgage check up from an Invis mortgage professional is a simple way to ensure:

that your repayment approach suits you, for example with payments structured to maximize mortgage principal reduction,
any consumer debt you may have (such as credit card balances) is transferred to a lower interest rate,
you have access to the lowest-cost funds for renovations, education or other major expenditures.
Contact us to learn more about your current mortgage options and how to make your home equity work for you.

Rick Moran, AMP #M08001997