Five year fixed mortgage rates have dropped again this morning! This is a great opportunity for anybody in the market to purchase a home, refinance their mortgage, or have an upcoming renewal! Lock in today’s rates now! Protect yourself now by locking in to today’s low rates! If rates continue to fall you will always be able to take advantage of the lowest rate at signing. Take Action Now!

Mortgage Interest Rates for 5 Year Fixed products have gone down in the last few days at a a few of the big 5 banks. Most other lenders will follow suit. It’s time for you to take action.Take advantage of this unexpected decrease and lock in your mortgage pre-approvals. Take a look at your current mortgage to see if you need to look at a mortgage refinance or mortgage renewal in the next few months! Mortgage Rate Holds are good for 3-4 months!!! Take action today & potentially save thousands on your next mortgage term.

Today, June 1, 2010 the Bank of Canada increased the Prime Rate by .25% from 2.25% to 2.5%…Learn how this affects Variable Rate Mortgages and other financial transactions you may have!

For the detailed report, please click RBC Housing Affordability Report!

The Bank maintained its forecast that stronger growth will likely be reported for the final quarter of 2009, after a disappointing third-quarter performance, with the economy forecasted to build momentum throughout 2010. Most experts maintain that 2010 will see stronger growth including an improved employment outlook, increase in investment in machinery and equipment, and large gains in the leading indicators index.

However, the strengthening in the Canadian dollar and weak  U.S. demand may cause a slight risk to Canada’s recovery. Last week’s reiteration that overall risks are “tilted slightly to the downside” as a result of policy operating at the lower bound indicates that the bank’s policy plan remains intact and it is unlikely that there will be a change in the overnight rate before the end of the second quarter of this year. However, this cannot be written in stone.  Huge employment gains and strong 2009 fourth quarter numbers could change the timing of the rate increase.

Many forecasters are still expecting Canada’s economy to gain strength; perhaps though, more slowly than earlier recoveries.  This may in turn likely delay raising the overnight rate until the summer of 2010.

These unsteady changes in the job statistics are signaling more of a roller coaster recovery than was expected and are causing economists to scale back their predictions in rate hikes. The job loss numbers for December are mirroring the recovery of the recession of the 1990’s which saw large job growth, followed by consolidation.

Despite this hiccup, Economists estimate growth in Canada in the final three months of 2009 to register between 3% and 4%.  Many Economists are still looking to the third quarter for the Bank of Canada to raise its benchmark lending rate; however, this remains to be seen.

For contracts written before November 18th, 2009 5% GST will be charged regardless of when completion is.

For contracts written after November 18th, 2009 that complete before July 1st, 2010, 5% GST will be applied.

For contracts written after November 18th, 2009 that complete after July 1st, 2010, 12% HST will be applied.

Although HST is a combined tax of 5% GST and 7% PST, there are still rebates available for both taxes.
For example:

On a $300,000 Purchase Price
15,000 GST Charged (5%)
21,000 PST Charged (7%)
$336,000 TOTAL

(5,400) GST Rebate
(15,000) PST Rebate
($20,400) TOTAL REBATE

Net Purchase Price with Tax:
$336,000 Total with Tax
($20,400) Total Rebates
$315,600 TOTAL DUE with HST

This new total reflects a 2% increase over what would be paid with GST.

As with GST rebates in the past, there is a maximum HST rebate on the PST portion of $26,200.

Please consult with your Realtor and Mortgage Broker as to the specifics of your situation and how best to prepare yourself for the increase in tax payable on new home purchases in British Columbia beginning on July 1, 2010.