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What is going on in the Mortgage Marketplace?

August 30th, 2012


What is going on in the marketplace?


Rates are still at a historical low, but for how long is everyone wondering?


They should not go up in the short term however, with rates this low;


Can you afford not to take a long-term rate?


Let’s compare a 200 000$ mortgage with a 5 year fixed rate of 2.99% with a 5 year fixed rate of 6% (October 2007 posted rate was 7.44%).


A 2.99% product would be 945.47$ per month. Hypothetically, let’s say that the rates do rise in the next 5 year, to 6% (happened before, see 5 years ago) then your renewal at 6% will mean that your payment will increase to 1217.24$ per month!


Increase of 271.77$ per month!


Now if you had a 10 year mortgage on a fixed rate of 3.99% then your payment would be 1050.96$ per month, so no chance of increase and a better piece of mind.


All clients are different, some would rather have a better rate and others want that piece of mind. Let us assist you in choosing the option that is right for you!  Expert Mortgage Group has all the options to offer you a solution that fits your needs.


What changes are happening in terms of products?


  1. Cash back mortgages might disappear fairly soon


There has been talk about eliminating cash back mortgages (for the no money down option).  If you are renting and do no have a down payment, why not take advantage of the 0% down option and become a homeowner now before the option is no longer available.


  1. HELOC – Home Equity Line of Credit will be reduced to 65% of the value of the home (from 80% now).


Recommendation: If you want a HELOC to 80%, get it approved and funded now!


We have over 30 lenders across the country to offer you the best service, best products and best rates!


If you have any concerns or questions, do not hesitate to contact Expert Mortgage Group at 1 866 585 2022 or via email at


Our bilingual team of mortgage agents is ready to serve you!


Thank you,


Mathieu McCaie


* The information provided was to the best of our knowledge as of August 30th, 2012.  Rates are subject to change without further notice.  O.A.C.