Mortgage Update: June 22, 2009

"We start the week with mortgage rates significantly higher than two weeks ago. The major banks offer 4.49% for 5-year closed term. Better deals are still available, but with some restrictions. The lowest offering as of today is 4.18%."

"Another important development over the last week is that two of the big banks stopped to issue pre-approvals. The reason is simple—underwriters are busy working on real purchases and refinancing and are already behind with lots of files on their desks."

"Last week I attended an interesting meeting with representatives of CMHC. There are two points that the speakers wanted to drive home:

• while home prices in Ontario have declined over the last year, in Ottawa they are up 1.0%
• interest rates are not expected to go lower—CMHC's expectation for the posted mortgage rates for a 5-year closed term for the rest of the year is 5.64%

What does that tell you? That buyers should not stay on the sideline—the time to buy is now!"

Vasko DeLev, AMP
Accredited Mortgage Professional
License # M08000574

Verico Capital Mortgages Inc.
106-18 Deakin St, Ottawa ON K2E 8B7
Direct Line: 613-882-7603
Email: vasko@CapitalMortgages.com