Mortgage for Change Blog

·         TSX -22.14 to 13,524.82 (Reuters)  reversed a near 1 percent gain in volatile trading, declining for a third straight session as Japan 's nuclear crisis and clashes in the Middle East weighed on investor sentiment, with strong resource prices cushioning the TSX's fall.

·         DOW -242.12 to 11,613.30 Equity markets are being rocked as black-swan events** in the Middle East and Japan weigh heavily on sentiment. The drop was also fuelled by weak U.S. housing data as US housing starts plunged to its lowest level in a year

·         Dollar -.80c to 100.83c USD  the loonie is trapped in a global rush to the exits from risky assets sparked by the nuclear crisis in Japan

·         Oil +-$.80 to $97.98USD per barrel

·         Gold +$3.30 to $1396.00 per ounce

·         Canadian 5 yr bond yields markets -.10bps to 2.44. The spread (based on the MERIX 5 yr rate published rate of 4.04%) is above the comfort zone at 1.60 as bonds soar in a flight to safety    http://www.tmxmoney.com/HttpController?GetPage=BondsAndRates&Language=en  .

The rate of return on your bond, can be read through a yield curve, If the increase in bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise. Currently lenders are looking for a spread between 1.35 and 1.55

**One more animal to add to our financial zoo. We have the bull, the bear, the dove, the hawk and now the black swan. Characterized by philosopher Nassim Nicholas Taleb, the black swan theory refers to events that are undirected and not predicted. Based on Mr. Taleb’s criteria, the event is a surprise, has a major impact on society, and is rationalized by hindsight. Past examples include 9/11 and the sub-prime mortgage crisis that tipped off the recent recession.

While not everyone one will agree, many market observers, including noted bear Nouriel Roubini, are describing Japan’s nuclear emergency and political turmoil in North Africa and the Middle East as “black swans” that are adding significant headwinds to financial markets.

Have current rates and a mortgage calculator at the tip of your fingers wherever you go!

Download and use my personal mortgage app for your BlackBerry or iPhone! Tools include:

• Home Affordability and Mortgage Payment Calculators
• My personal mortgage rates, up-to-date!

Type the URL below into your phone's web browser. Install the app then enter the activiation code below. (Tip - copy and paste this message into an email that you can send to your phone). 

Click Here from your iPhone or BlackBerry : http://www.workingbusinesscard.com/download.php

After you download the app, please enter this activation code:

6410963764

Enjoy!

"Lack of awareness is major obstacle for the mortgage broker channel." This is how the last CAAMP homeowner survey results begin. (Consumer and Industry Perceptions).

Of 2,000 responses, just 5% of Canadians said they have a good understanding of what a mortgage broker does!

To nail this point home, I recently read a finance article published in a Toronto newspaper. The author wrote an entire article about the importance of going the trials and tribulations of personally shopping the banks for a good mortgage. She believes her time was best served and she got the best mortgage by personally visiting BANKS for rates. It seems she didn’t even consider speaking with a mortgage broker.

My take away? It seems that mortgage brokers need to take more responsibility for sharing what we do.

Just yesterday, I attended a professional development session hosted by FICOM. We were told that currently in Canada approximately 33% of first time buyers are using a Mortgage Broker to arrange their financing. Hmm... seems the younger crowd perhaps are more mortgage savvy than their parents?

So, if you are in the know, please tell a friend;

• Working with an Accredited Mortgage Professional (AMP) saves you time, hassle and usually lots of money.
• A broker shops the banks and lenders to find the best mortgage for you. Banks and lenders offer us their 'best rates' because - if they don't - their competitors will get all the broker mortgage business. (And that's a lot of business!)
• For a person with an average credit rating, it costs nothing to use a mortgage broker. Banks and lenders pay a fee to brokers for bringing them new clients.