Getting Low Rate Mortgage

August 31, 2009 by  
Filed under Mortgages

For the month of July 2009, the Housing Credit Monitoring / CSA found that the average rate (nominal rate excluding insurance) the mortgage is 3.96% down to 18 points (the average of June to stood at 4.14%).

The average has fallen 119 points since November 2008, the average rose from 5.15% to 3.96% in July 2009. This decrease of about 120 points corresponds to lower monthly payments by about 10%.

The mortgage market is becoming attractive again.

The outlook for late 2009 early 2010:

1. Renegotiation of mortgages underwritten in 2008

Currently, we think that the majority of the decline is over, however, the economic environment remains still uncertain rates could remain at that level for some time. This fact encourages households having a mortgage agreed in 2008 (credit conditions are less favorable) to renegotiate their mortgage.

Several solutions are available to households to renegotiate their credit:
– Please contact their bank and try to negotiate a more favorable rate
– To compete with various agencies to obtain better conditions
– Applying for a mortgage broker who has the mission to offer the best conditions for his client.

Through a broker, usually in 48 hours an agreement is reached and the process is completed in about a month.

2. Massive recurrence rates vary

Chatel law that strengthened the legislation around the floating rate will allow them to recur fairly massive. Indeed, the gap between variable rates and fixed rates can reach 150 basis points within the same bank. Depending on its level of indebtedness, the borrower will often be unique opportunity to purchase a floating rate loan for funding. But the fact of subscribing to a variable rate may be quite positive in that the rate is capped between 1 and 2.

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