Is Blending and Extending Right For You?

You may be looking at today’s mortgage interest rates and are asking yourself how you can take advantage of these rates. In our previous newsletter from February 2009 we talked about breaking out of your mortgage contract and getting a new mortgage at today’s lower rates. To view the February 2009 newsletter please visit our blog at http://yourmortgagecontact.blogspot.com/. Two obstacles can arise with this strategy: 1) You do not have the required equity in your home to allow this transaction. 2) The penalty is so high that there is no savings benefit over the long term.

There is another way you may be able to take advantage of the lower interest rates without requiring the equity in your home or paying a large penalty. The strategy is called blending and extending. With this strategy you are not entitled to the lowest mortgage rate available but your current lender will take your existing mortgage rate and blend it with a new 5 year term mortgage. The rate the lender can offer you will depend on the remaining term of your existing mortgage. This means that your blended rate will be better if the term left on your existing mortgage is shorter. In addition your term will be reset again to 5 years so you have extended your mortgage renewal. At the end of the process you will have a new 5 year term mortgage at a lower interest rate than your current interest rate. In our discussion, we talked about using the 5 year term to blend and extend but the lender may offer to use shorter or longer terms as each lenders policy is different. Also you will have to check with your lender to see if they will offer this strategy for you as some lenders may not allow this option.

If you are interested about this strategy and you call your existing lender to inquire about your new blended rate and term, also ask about the penalty to completely break out of your current mortgage. Please then contact us and we can assist and advise you as to whether the blended rate and extended term is better than breaking out of your current mortgage and paying the penalty to take full advantage of the low rates.

We are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.

Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com

Wishing you, your family and friends all the best over the holiday season and have a wonderful New Years.

Sincerely,

Betty Saskiw, AMP
Mortgage Associate

&

Kevin Saskiw, CFA
Mortgage Assistant

Saving For Your Downpayment

Whether you are a first time home buyer or have bought multiple properties, saving for the downpayment can seem like an impossible task. It can be difficult saving $10,000 or more but not impossible. Here are a few solutions to help you save for that downpayment:

1) For first time homebuyers a great way to come up with the downpayment is taking advantage of the RRSP homebuyers plan. Even if you have owned a home in the past you may still be eligible if you have not owned a property for at least 5 years. This option allows you to withdraw up to $25,000 from your RRSP tax free and pay it back over the next 15 years. If you do not have adequate RRSP’s saved up, take advantage of an RRSP loan. This will help you with the savings you need while also providing you with the opportunity to improve your credit rating. To find out more about how to use your RRSP for a downpayment please click here or contact us today with your questions and/or your application.

2) This year the Canadian government introduced the Tax Free Savings Account (TFSA). The TFSA allows you to contribute up to $5,000 per year where any income or growth and principle can be withdrawn tax free. With time you can save for that downpayment quicker than you think while avoiding paying government taxes. Contact us today if you would like to know more about this option.

3) Downpayment funds provided by your immediate family members, meaning parents, grandparents or siblings. This downpayment can be in the form of a gift provided it is non-repayable. The person(s) gifting the funds would not have to be a co-borrower, co-signer or obligated any further with the mortgage in any way if you qualify on your own. They are just helping you out and providing you with a gift allowing you to purchase a home. If you are lucky enough to have this help from your family contact us today if you have any questions and to start your application today.

If the above means for saving for a downpayment are not suitable options for you, here are a couple of more solutions:

4) Providing you have an excellent credit score, borrowing the downpayment may be an option for you. If you already own a property, you can use any equity in that property up to 95% of the value towards the downpayment. If you do not have a property or adequate equity in the property, the downpayment can be borrowed by other means. For example using credit cards, line of credit or even a friend or family member loan that is set up as a real loan. A couple of factors to consider in regards to borrowed downpayment are: 1) Approval for a large unsecured loan may be quite difficult. 2) The loan payments must be considered when qualifying for the mortgage and thus can really impact the amount of the mortgage you can be approved for. 3) You will now be dealing with at least two payments, one payment for the downpayment loan and another for the mortgage. If borrowing the downpayment is an option for you then please contact us today to discuss.

5) A cash back mortgage solution is where the lender gives you the minimum 5% downpayment. This is a great option if you are motivated to buy immediately and have an excellent credit score but have been unable to save for the downpayment. Currently the best 5 year rate for this product is 5.84%. This rate may seem high at first however, you must remember that interest rates are at all time lows and if it takes you a year or two to save for the downpayment, the best interest rates at that time could be around this percentage level anyways. In addition the housing market has been strengthening lately where in most areas prices are starting to rise meaning you will have to save more downpayment for your future purchase. Looking at these two points makes the interest rate look very attractive and allows you to purchase immediately. Looking at these two points makes the interest rate look very attractive and allows you to purchase immediately. Keep in mind that if you break out of the mortgage term early for any reason the lender will take back the money given to you on a pro rated basis. If you feel this solution is the answer for you please contact us today to start your application and your homeownership dreams

We hope this helps you with any downpayment questions. If you feel that the above options do not solve your downpayment problems please contact us. We can look at your individual situation and work with you to help with homeownership no longer being just a dream but real.

In addition we are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.

Any questions at all about mortgage financing refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com

Sincerely,

Betty Saskiw, AMP
Mortgage Associate

&

Kevin Saskiw, CFA
Mortgage Assistant

We Are On Twitter

Did you miss out and not get a pre-approval in place before the increase in mortgage interest rates. Tired of waiting for an e-mail or a phone call about mortgage updates? Even worse are you even kept updated? No more waiting or being the last to know. Stay updated on the current products, news about mortgages and when rates may be changing. Follow us on twitter to be kept informed of any immediate changes that could affect your situation. Also you may check our website www.yourmortgagecontact.com for any updates as well.

Looking for a mortgage pre-approval, approval, refinance, renewal or have a question about mortgages? Contact us today for immediate service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or visit our updated website: www.yourmortgagecontact.com

Sincerely,

Betty Saskiw, AMP
Mortgage Associate

and

Kevin Saskiw, CFA
Mortgage Assistant

Official Launch of Your Mortgage Contact Newly Designed Website

We are pleased to announce the new design and look of www.yourmortgagecontact.com. Check it out to help you with all of your mortgage needs. Visit regularly to keep up to date on any changes in the mortgage industry. We also appreciate any feedback to make sure the website can be its very best.

We apologize that the newsletters have not been sent out the last few months. We are pleased to announce e-mails of our monthly newsletters will resume.

In addition we are now on Twitter. Click Here to start following us and be the first to receive daily updates about interest rates and mortgage news.

Any questions at all about mortgage financing refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or visit our updated website: www.yourmortgagecontact.com

Sincerely,

Betty Saskiw, AMP
Mortgage Associate

and

Kevin Saskiw, CFA
Mortgage Assistant

The Future For Interest Rates

The first 5 months for 2009 have been an interesting time for the real estate and mortgage market. House prices have seemed to stabilize; fixed interest rates and the bank prime rate are at their lowest levels ever. So what does the remainder of 2009 have in store for the real estate and mortgage markets? Below are our predictions.

Per our last rate prediction newsletter in January 2009, we still believe that the western market (particularly Alberta) will continue to be fundamentally strong. With a stronger than average job market despite the current economic times, the real estate market should continue to show strength throughout the year. Also as predicted in January housing prices have started to stabilize. In addition, due to the lowest interest rate environment ever seen, more buyers are looking to enter the market particularity in the last two months.

Fixed rates: Fixed rates have recently stabilized with the best 5 year fixed rate for pre-approvals and 120 day rate holds currently at 3.79%. The lowest possible interest rate for a 5 year fixed closed mortgage is 3.74% but must close within 30 days. Since our last prediction at the beginning of the year rates have come down more than expected. We still feel that for the remainder of the year; rates will stay close to their current levels (within 0.25%) with a steady increase projected to start in mid 2010. Current fixed interest rates are at levels never seen before. The real estate market for the remainder of 2009 should continue to increase as more buyers take advantage of the unbelievable interest rate environment.

To view our current rate sheet please click the following link:
http://www.yourmortgagecontact.com/rates.aspx

Variable rates: On April 22, 2009 the prime lending rate was lowered to 2.25%, which was a decrease of 0.25% from the previous level. The Bank of Canada rate of 0.25% is at its lowest rate ever. This means another decrease in the Bank of Canada rate is not possible. Therefore the banks prime rate will not go any lower than the 2.25%. The Bank of Canada did state that their plan is to keep the bank rate of 0.25% and prime rate at 2.25% for 1 year with no increases, unless there is a major change in the economy. Currently the best variable mortgage pricing is prime plus 0.40% (2.65%), however most lenders have adopted a pricing of prime plus 0.60% (2.85%). With the prime rate having nowhere to go but up, we still predict the prime rate to increase rapidly in mid 2010 to control inflation.

To view our current rate sheet please click the following link:
http://www.yourmortgagecontact.com/rates.aspx

The remainder of 2009 should be an excellent year for you to get the mortgage you deserve. Whether you choose to go with a fixed or variable mortgage, 2009 is shaping up to be an optimal time to purchase a new, second, rental or vacation property, renew your existing mortgage or refinance your current property.

Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our website: www.yourmortgagecontact.com and apply today.

Also please tell anyone you know that may be looking to purchase, refinance or early renew their mortgage as it may give you an opportunity to receive a $1,000 gift certificate of your choice. Click Here to find out further details.

Watch for our new and improved website in Summer of 2009.

Do You Have Life And Disability Insurance Coverage For Your Mortgage?

Most people do not like to think of life and disability insurance, however insurance coverage is an important topic especially when it involves your mortgage. Whether you have had a mortgage in place for years or are in the midst of purchasing a new property, insurance coverage can be obtained anytime. There are basically four ways people cover their mortgages with life and disability insurance: 1) Through their employer benefits. 2) Individual term or whole insurance coverage plans set up through an insurance broker. 3) Mortgage insurance set up directly by the mortgage lenders. 4) Mortgage Protection Plan insurance coverage set up through Your Mortgage Contact Betty and Kevin. Each option has their advantages but some insurance plans may not be suitable in certain situations. We will go though each option individually:

1) Insurance coverage through your employer. This option is usually the cheapest but can be the most unstable. The instability is where you may find yourself with no life and disability coverage in the event you either lose your job or your benefits change with your employer. In today’s uncertain economic times, job stability and even changing benefits have become very common and can unexpectedly leave you in a position of losing your insurance. Also over time, employer insurance plans become more expensive as you age. Employer insurance plans are great because they are relatively inexpensive, however should not necessarily be the only insurance coverage you should rely on to cover your mortgage.

2) Individual term, whole and disability insurance plans set up by insurance brokers. The reasons these plans are great are because long term coverage is provided for a stated amount of time with no change in the coverage amount. One negative to this option is the potential high cost. Another downside is having to decide on the term as what term do you choose when covering your mortgage? With mortgage amortizations up to 35 years and with some mortgages expected to last even longer, what term do you choose? Say you choose a 25 year term because your mortgage amortization is 25 years. But what if your mortgage takes longer than 25 years to pay off due to refinancing? To renew your insurance can be very expensive now due to your age. One positive aspect about these policies is that the application is reviewed and verified before insurance is granted to you. This is an extremely important point in the event a claim is made to have it processed as smoothly as possible. Individual term, whole and disability insurance plans are a very good option to have your mortgage covered however there may be challenges deciding on the type and amount of coverage to match your mortgage requirements.

3) Mortgage insurance offered directly through the lenders. As you may be aware, most lenders have life and disability insurance coverage specifically designed for your mortgage at quite affordable rates. These insurance products are great for covering you for the entire term of your mortgage and can be easily adjusted with any changes to your amortization or mortgage amount. One issue is that when you sign up for lender insurance plans you have to be extremely careful when answering the medical questions. There have been instances when claims have been declined due to medical issues that were not disclosed or thought to have been minor. The claims get declined because verification of your application, especially the medical questions, is not done until a claim is filed. In addition, lender mortgage insurance is not portable meaning in the event you lender is changed, you must re-apply for insurance. Lender mortgage insurance coverage is good product given that it is specifically designed for your mortgage but dealing with complicated forms with little guidance can cause future problems when a claim has to be made.

4) Mortgage Protection Plan insurance coverage set up through Your Mortgage Contact Betty and Kevin. This insurance is offered by Manulife Financial, a name that is recognized all over the world and known for providing great insurance solutions at affordable prices. This plan combines options 2 and 3 to give you the best coverage possible. It is specifically designed for mortgages as in option 3 but with your application reviewed upfront by insurance professionals such as in option 2 so when claims are made they can be dealt with smoothly. Getting coverage is as simple as filling out a one page application. We at Your Mortgage Contact know we are not professionals when speaking about insurance however you can call an experienced insurance agent to help you with any question you may have about the product at anytime. Once the application is completed we will send in your request. Your application will be reviewed by an insurance professional that will follow up with you to go over your application in detail to make sure no errors have been made when answering the medical questions and any changes in the coverage and costs based on your individual situation. You also may be required to have a blood test in some instances. Some extra benefits to this plan also include the following: 1) 60 day money back guarantee. This means if you choose to cancel coverage in the first 60 days from your application date for any reason, any premiums already taken will be fully refunded. 2) When a claim is made any mortgage payments due will be covered and paid for while your claim is being processed. 3) Coverage starts immediately your application is submitted. 4) Your insurance stays in place even if you change lenders.

Life and disability insurance coverage for your home is extremely important. You do not want to leave your family burdened with a large unmanageable debt load. For this reason, please review your insurance coverage and ensure you are fully protected. Please contact us if you require assistance with your mortgage insurance needs. We can either refer you to an insurance broker or set up the mortgage insurance for you through a mortgage protection plan.

Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our website: www.yourmortgagecontact.com

Also please tell anyone you know that may be looking to purchase, refinance or early renew their mortgage as it may give you an opportunity to receive a $1,000 gift certificate of your choice. Click Here.

Please click here if you would like to make any comments about the current or past newsletters as we appreciate any feedback. Also watch for our new and improved website in Summer of 2009.

7 and 10 Year Term Mortgages Looking Attractive During Uncertain Future

The housing industry is showing signs of gaining momentum heading into spring. What does this mean for the future of interest rates? Currently mortgage interest rates are at all time lows however these rates will most likely start to increase in the near and long term future. In the future it is uncertain how high interest rates will go and for how long the interest rates will stay at these high levels. One way to combat this uncertainty is to choose a longer term mortgage. Most people choose the 5 year fixed term because of its low rate but the 7 and 10 year terms have decreased as well. If you choose the 5 year fixed term, upon renewing in 5 years time interest rates could be quite a bit higher than the rates are today. By choosing the longer terms of 7 or 10 years allows you to put off that renewal date an additional 2 to 5 years offsetting the uncertainty of your new mortgage rate and payment. With a 7 or 10 year mortgage you will still be faced with a renewal date. The extended term gives you the opportunity to pay down your mortgage balance further so even if mortgage rates are high at the time of renewal your mortgage principle balance will be lower. Currently the best 7 year fixed term offered is 5.00% with the 10 year fixed term as low as 5.25%. These are amazing rates for the length of the term. Choosing these terms would allow peace of mind that your mortgage payment will not change for 7 or 10 years. If you are currently in the stage of refinancing, renewing, remortgaging or purchasing and are considering taking a longer term mortgage please call us today.

There are a couple of myths when it comes to longer term mortgages:

1) I will not be able to move from my home if I choose a 7 or 10 year mortgage without facing a large penalty.
- This is incorrect. You have the ability to move anytime you wish without paying a penalty. Most lenders allow you to port or transfer your existing mortgage to your new property. Also if you need additional funds to purchase your new home a blended interest rate could be calculated depending on the extra funds required as well as current mortgage interest rates and terms available.

2) I cannot payout the mortgage faster if I choose a 7 or 10 year term.
- This is incorrect. You will have the same ability to make extra lump sum payments, double up payments and even increase your monthly payments as per the lenders guidelines. If your mortgage is paid out early using the lenders prepayment privileges (ie. if you have a 10 year fixed term and you end up paying the mortgage out in 9 years), then no penalties would apply.

If you currently have a mortgage, your mortgage is coming up for renewal, or you are currently looking to purchase a property and are concerned about future interest rates. Please call us today and inquire about the 7 and 10 year term mortgages available to help ease your concerns. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our website: www.yourmortgagecontact.com

Also please tell anyone you know that may be looking to purchase, refinance or early renew their mortgage as it may give you an opportunity to receive a $1,000 gift certificate of your choice. Click Here.

Please click here if you would like to make any comments about the current or past newsletters as we appreciate any feedback. Also watch for our new and improved website in Spring of 2009.

Recent Budget Changes and Greater Affordability That Help With Home Ownership

If you are in the market to purchase a home, second home, vacation property, rental or investment property in 2009 it looks to be a great year. Affordability for housing is at an all time high due to extremely low interest rates and house prices. Real estate values have been falling for the last 9 months and look to stabilize throughout the year. In addition the recent budget changes help first time homebuyers with tax incentive programs and downpayment saving programs. New and existing homeowners can also benefit from tax savings with the introduction of a renovation tax incentive program.

As mentioned above it is a fantastic year for first time homebuyers to purchase a property. Homebuyers currently need a minimum 5% downpayment to purchase a home and saving for this downpayment has been made easier. The recent budget now allows a first time homebuyer to withdraw up to $25,000 from their RRSP under the first time homebuyers plan. This was increased from the previous maximum limit of $20,000. Also available to help any homebuyer with saving for the downpayment is a Tax Free Savings Account (TFSA). As of January 1, 2009 you can deposit your savings into a TFSA where any interest or dividend income and capital gains can be earned tax free. You can deposit up to maximum of $5,000 per year to your TFSA account and withdraw the funds anytime with no tax payments required. To find out more about these accounts please visit the following website: http://www.fin.gc.ca/ or contact your financial institution.

Whether you are a first time home buyer or buying your 10th property and have not had the ability to save for the downpayment, the following are two options available to you if you have excellent credit:

Option 1) Borrowing the downpayment through your own means. In this scenario you would borrow the 5% downpayment from a financial institution and then be eligible for the best mortgage interest rates. If you are having difficulties getting an unsecured loan from a bank or find dealing with two separate loans and payments to be confusing, option 2 is available for you.

Option 2) Cash Back Mortgage programs offered through the lenders where along with the mortgage, the downpayment is lent to you with one easy application process. You only have to deal with one payment. The current best 5 year fixed rate with 5% cash back is 5.79%.
Another incentive provided to first time homebuyers is the first time homebuyer’s tax credit. This program gives a tax credit of 15% on eligible closing cost expenses such as legal fees, land transfer taxes, appraisals fees, home inspection fees, moving expenses, etc. You can claim a maximum $5,000 of qualified expenses to receive the full $750 tax credit. For further information please visit the following website: http://www.fin.gc.ca/ or contact an accountant or tax professional.

The budget has also included for 2009 a home renovation tax credit to benefit all homeowners. This program gives the homeowner a 15% tax credit for any qualified renovation expenses in excess of $1,000 to a maximum of $10,000. You have until February 1, 2010 to make your qualified expenses for a maximum tax credit of $1,350. Qualified expenses include renovating a kitchen, bathroom or basement, new flooring such as hardwood carpet or tile, building a new addition, deck, fence or retaining wall, new furnace or water heater, Painting the interior or exterior of your house, resurfacing a driveway, laying new sod, etc. Expenses that do not qualify are the purchase of furniture or appliances, purchase of any tools, carpet cleaning, any maintence projects such as furnace cleaning, lawn care, snow removal, etc. Also to note only personal use properties can qualify such as your primary residence or vacation property. Therefore renovations done to rental or investment properties do not qualify for this tax incentive. To illustrate an example on how this works: you have made qualified renovation expenses of $7,000. That means you get a tax credit of $7,000 - $1,000 = $6,000 X 15% = $900. For further information please visit the following website: http://www.fin.gc.ca/ or contact an accountant or tax professional. If you do not have the means to pay for the renovations yourself you can always take advantage of today’s low interest rates and use any excess equity value up to 95% and refinance your property to complete your renovation projects. Also if you are purchasing a new home that may need some renovations the purchase plus improvements program can help you finance the renovations. Please feel free to contact us anytime to inquire about your options.

With housing that has become more affordable and the above savings, tax and loan incentives purchasing or renovating a home has become easier and cheaper than the recent past. If you have any questions or would like to apply today please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our website: www.yourmortgagecontact.com

Also please tell anyone you know that maybe looking to purchase, refinancing or early renewing their mortgage as it may give you an opportunity at a chance to receive a $1,000 gift certificate of your choice. Click Here.

Watch for our new and improved website in Spring of 2009.

Converting Your High Interest Mortgage to the Current Low Interest Rates Equals Unbelievable Savings.

Did you get a mortgage within the last 4 years? If so please read carefully as you may be able to take advantage of unbelievable savings on your interest costs.

We are currently at a stage where the last time interest rates were this low was in 2004. Considering the inevitable rising of interest rates and an uncertain economic future, remortgaging is something you should definitely consider. It may be in your best interest to pay the penalty to break free from your existing high interest mortgage and consider refinancing or early renewing your mortgage at these unbelievably low interest rates. Take a look at the following example to see how these savings add up:

Example:

Original Mortgage Amount: $300,000.00
Current Interest Rate: 5.50%
Current Monthly Payments: $1,598.89
Term Remaining on Current Mortgage: 3 years
Amortization Remaining on Current Mortgage: 32 years
Approximate Penalty Payable to Break Free of Current Mortgage: $3,992.58
Approximate Interest Payable Remaining on Current Mortgage: $47,135.29

Current Mortgage Balance Including Penalty: $297,937.74
New Interest Rate: 4.39%
New Monthly Payments: $1,438.57
New Term: 5 years
Amortization: 32 years
Approximate Interest Payable over next 3 years: $38,009.25

Total Approximate Savings over next 3 years: $9,126.04
Total Approximate Savings over next 3 years after penalty: $5,133.46

As you can see in the above example you can save approximately $5,133.46 over the next 3 years even after taking into account the cost for the penalty. In today`s economy this money can go a long way. Apart from the savings two additional benefits are: 1) Per the above example, there is a decrease of your monthly payments by $160.32 per month. The difference in monthly payments can be spent any way you prefer. One tip is if you keep your monthly payments the same your savings would be even greater. 2) In the example above you would gain an extra 2 years at the new low rate of 4.39%. It is nearly impossible to predict what interest rates will be exactly in the long term. However we do expect interest rates to increase with no warning as early as September of 2009. These extra years at the low interest rate are priceless.

Fees that may be associated with this transaction are: 1) Appraisal costs which are approximately $350 (In most cases we will pick up this cost for you) 2) Legal costs approximately $450 (This cost is waived in most cases if your approved mortgage is less than 80% of your property value) 3) Mortgage insurance premium top up approximately $200 to $500 (In most cases there is no insurance premium fee if your approved mortgage is less than 80% of your property value). Considering your interest savings, the potential fees outlined are minimal.

Before you call us to inquire about your savings, first you need to see if you have the required equity in your property to take advantage of the current low interest rates. Most of you should have received your 2009 property assessment by now. Please follow these simple 2 steps to see if you are eligible to participate.

Step 1) Take your 2009 assessed value or the value you feel your property is worth and multiply it by 95%. (Example: 2009 Assesses value of $300,000 X 0.95 = $285,000) This provides you the maximum mortgage amount you can apply for.
Step 2) Take your current mortgage balance today and add 3 months payments. (Example: Monthly payments of $1,400, $1,400 X 3 = $4,200, Current Mortgage Balance $250,000, $250,000 + $4,200 = $254,200) This provides you with the amount of mortgage you would require including the approximate penalty to break out of your existing mortgage.

Results: If the number you calculated in step 1 is greater (larger) than the number you calculated in step 2 then please call us to inquire what your savings could be. If the number you calculated in step 1 is less than (smaller) than the number you calculated in step 2, then unfortunately you do not have enough equity in your property to participate. In this case you could only participate if your property value increases or if you are willing to pay the mortgage and penalty from your own resources so it is equal to or is less than the number you calculated in step 1. If your number in step 2 is only a small amount over ($5,000) than what you calculated in step 1 please call us as we still may be able to help out.

Don`t miss out! Please contact us today so we can do a detailed analysis on your individual situation. Contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our website: www.yourmortgagecontact.com.

Also please tell anyone you know that may benefit from refinancing or early renewing their mortgage as it may give you an opportunity at a chance to receive a $1,000 gift certificate of your choice. Click Here to find out further details.

Please click here if you would like to make any comments about the current or past newsletters as we appreciate any feedback. Also watch for our new and improved website in Spring of 2009.

Where Are Interest Rates Going?

2008 has been an interesting year for the real estate and mortgage markets. House prices have come down from their 2007 highs, fixed interest rates are the lowest since 2004, and the bank prime rate is at 3.50% its lowest level in 50 years. So what does 2009 have in store for the real estate and mortgage markets? Below are our predictions.

We feel that the western market particularly Alberta will continue to be fundamentally strong. With a stronger than average job market despite the current economic times, the real estate market should show some strength throughout the year. We also feel housing prices will start to stabilize. In addition, due to a low interest rate environment not seen since 2004 (the beginning of the boom), we should see more buyers looking to enter the market again.

Fixed rates: Fixed rates have recently been lowered by all the lending institutions and the best 5 year fixed rate is currently 4.89%. Due to the current economic state, we believe that there is potential for fixed rates to decrease 0.10% to 0.25% in the first half of 2009. For the remainder of the year, rates should stay unchanged with an increase projected in mid 2010. Current fixed interest rates are returning to levels not seen since the pre 2004 housing boom. Thus the real estate market going forward will be stronger than the market seen in 2008.

To view our current rate sheet please click the following link:
http://www.yourmortgagecontact.com/rates.aspx

Variable rates: On December 10, 2008 the prime lending rate was lowered to 3.50%, which was a decrease of 0.50% from previous levels. The next rate announcement by the Bank of Canada is scheduled for January 20, 2009 and it is widely expected that once again the prime lending rate will be decreased by 0.25% to 0.50%. We also expect the prime rate to be lowered potentially another 0.25% to 0.50% throughout the year. Please note the lenders may not pass any Bank of Canada rate cuts to the consumer prime lending rate. For example, the last rate announcement only 0.50% of the 0.75% rate cut was passed onto the consumer banks prime lending rate. Currently the best variable mortgage pricing is prime plus 0.60% (4.10%), however most lenders have adopted a pricing of prime plus 1.00% (4.50%). We also predict the prime rate to increase rapidly in 2010 to control inflation.

To view our current rate sheet please click the following link:
http://www.yourmortgagecontact.com/rates.aspx

2009 should be an excellent year for you to get the mortgage you deserve. Whether you choose to go with a fixed or variable mortgage, 2009 is shaping up to be an optimal time to purchase a new, second, rental or vacation property, renew your existing mortgage or refinance your current property.

Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our website: http://www.yourmortgagecontact.com/ and apply today.

Click Here to find out how you can receive a $1000 gift certificate.

Please click here if you would like to make any comments about the current or past newsletters as we appreciate any feedback. Also watch for our new and improved website in Spring of 2009.

WISHING YOU ALL A PROSPOROUS 2009