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Was Mortgage Broker's advice correct?

Postby Omid Jalili » Sat Jul 28, 2012 04:30:17 AM

The advice of mortgage broker is exact accurate that you don’t know about mortgage rates. They mostly depend upon market condition. It may be possible that after one year mortgage rates will raise 2 to 3 % after one year.
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RE: Was Mortgage Broker's advice correct?

Postby WilfBranson » Wed Jul 25, 2012 12:09:22 PM

Yes, they are sitting pretty - until interest rates rise and property values fall. With 120,000 newcomers flooding into the GTA every year, they'll have to rise a fair bit though. A different story for places like Windsor.
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RE: Was Mortgage Broker's advice correct?

Postby themortgageguy » Wed Jul 25, 2012 11:17:50 AM

of course risk vs return holds true. And given that Canada is seen at very low risk to investors they are buying bonds at very low levels of returns. Last week 10 yr cdn bonds hit records lows. We aren't Italy or Greece or Spain - we are seen as a safe haven.

So I agree they are going to increase (that is like saying its going to rain) but when? People have been spouting the inevitable increase to normal rates since 2008 almost 5 years ago.

And total government debt in canada is lower than that total corporate and total household debt!

So yes inevitable is the key here. Believe me those people in variable mortgages at Prime less0.9 are sting pretty
Robert Ganzhorn, Mortgage Agent, Dominion Lending Centres YBM Group #11179 Direct: (416) 799-4049 Fax: (905) 294-7577 http://www.robertganzhorn.ca/
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RE: Was Mortgage Broker's advice correct?

Postby WilfBranson » Wed Jul 25, 2012 11:06:00 AM

Increasingly out of control debt levels, government and personal, will inevitably raise interest rates. Risk vs. Return: Fundamental law of economics.
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RE: Was Mortgage Broker's advice correct?

Postby DanielBl » Tue Jul 17, 2012 10:56:40 AM

No one has a crystal ball to see 5 or 10 years into the future, but macroeconomic indicators all point to instability, which means higher interest rates can't be that far off. Personally, I'd go with the 10 year, but others might say "damn the torpedoes" and go with the lower rate.

If you spend a few days reading the Financial Post or similar publications, it becomes apparent that the price of low interest rates is a sluggish economic recovery.

http://www.financialpost.com/index.html

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Was Mortgage Broker's advice correct?

Postby Winnie12_xo » Tue Jul 17, 2012 07:13:52 AM

Hi,

Looking for 2nd and 3rd opinions after visiting with my mortgage broker.

My mortgage (about $120K) is up for renewal in October (interest was 5.75%). Looking to see if I should go with a 10 year fixed (3.89%) or a 5 year (3.09%) fixed upon renewal. Mortgage broker recommends 10 year fixed.

Any thoughts?
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