Mortgage Connection Calgary

A Mortgage is more than an Interest Rate.

Mortgage Connection is not trying to sell you a mortgage. A finance consultant might sound like a strange concept, but here at Mortgage Connection we think this is exactly what is needed in the marketplace. We will sit down with you and take the time to look at your entire financial picture. We want to educate you on the myriad of financing options available and how to use them to effectively manage debt. Only then can you decide which mortgage represents TRUE value for you. With our professionalism, experience and guidance we help YOU decide what best suits YOUR needs.

Today’s Prime Rate:

3.00%

Bank of Canada’s
next meeting date:

March 8, 2012

Economic News

Rate Hike? Not This Year.

The weak global economy will keep the Bank of Canada from raising rates until 2013. This is not suprising, but normally such statements are not made for a 12 month window. For Alberta the continuation of job creation coupled with historical low rates may be the perfect storm for housing demand and growth.

Job Loss

Some alarming numbers on the unemployment front as Canada loses over 18,000.00 jobs. A lot of this is part time work and in Alberta, especially in oil and gas, a lot of workers have moved into contract style positions, so it may not be as doom and gloom as it seems. This said, as it has been for 3 years now, the need to tread cautiously is still very much here!

It Shrinks!

The results are in for the last quarter and the Canadian economy has shrunk for the first time in two years. If this continues, a further extension of record low rates is likely. Interestingly, house pricing across Canada actually rose in June. There may be a bit of a correction here, but Alberta will likely be immune and a continued slow rise in house pricing is likely.

Rates Remain Unchanged

The Bank of Canada held the overnight rate, which will in turn keeps variable rate mortgages unchanged for now. Inflation concerns could still result in rate hikes in 2011, however, unchanged rates for the balance of the year is not out of the question.

The Mortgage Wire

BMO a No Go

BMO has lowered their 5 year fixed rate to a historical low of 2.99%. Most news outlets are mentioning that the only restriction is that the amortization cannot be greater than 25 years, and prepayment options are capped at 10%. However, the most important term in the mortgage is being left out new reports. The BMO Low-Rate Mortgage has a sales clause. In simple terms, the mortgage cannot be paid out without selling your home. Although BMO claims to be "Making Money Make Sense" , with many other lenders offering a 4 year fixed rate at 2.99% without restrictive terms-taking a product that traps you in your mortgage doesn't make a lot of sense.

See the BMO product by clicking here:

2012 Property Tax Assessment

The city of Calgary has released the new Property Tax Assessments. This will give you an idea on the value of your home and how it will be taxed. However, they are often not necessarily accurate on current market value. For a better idea contact your Realtor to provide you with a current analysis.

To pull up your assessment online click here

RRSP Plan

The holiday season is more about spending than saving, but it is also a good time to take a look at your RRSP room. Although investing may seem scary in the currnet market, there are some smart opportunities and by putting monies into an RRSP you should recieve a tax refund that you can either apply against your mortgage, re-invest or pay off debts due to holiday over-spending. Want to tap into your home equity to boost your savings? We have a plan for you!

Steady Hold

The Bank of Canada left rates unchanged. An extended period of steady rates is likely well into 2012.