TD Canada Trust has lowered its prime lending
rate by 25 basis points to 2.25 per cent, effective April 22, 2009

This decision is brought by the Bank of Canada’s overnight rate drop of 0.25%.

Next Rate decision will be announced in June 4th.

John Hahn
TD Mobile Mortgage Specialist
www.VancouverTDmortgage.com

TD Canada Trust has lowered its mortgage rates,
effective March 7, 2009.

The changes are as follows:

Fixed Rates To: Change:
———–
6-month convertible 5.20% N/C
1-year open 7.45% N/C
1-year closed 4.50% -0.50%
2-year closed 5.00% -0.75%
3-year closed 5.20% -0.55%
4-year closed 5.44% -0.25%
5-year closed 5.79% N/C
6-year closed 6.40% N/C
7-year closed 7.00% N/C
10-year closed 7.35% N/C

Variable Rates To:
————–
VIRM Closed TD Mortgage Prime + 0.80%
VIRM Open TD Mortgage Prime + 1.00%

For more information, email john.hahn@td.com

John Hahn
Residential Mortgage manager
www.VancouverTDmortgage.com

Fixed Rates To: Change:
———–
6-month convertible 5.20% -0.70%
1-year open 7.45% -1.10%
1-year closed 5.00% -0.60%
2-year closed 5.75% -0.50%
3-year closed 5.75% -0.50%
4-year closed 5.69% -0.40%
5-year closed 5.79% -0.96%
6-year closed 6.40% -0.60%
7-year closed 7.00% -0.20%
10-year closed 7.35% -0.20%

Special Offers
————–
One year Fixed Rate (Closed) 4.00% N/A
Four year Fixed Rate (Closed) 4.39% N/A
Five year Fixed Rate (Closed) 4.49% -1.10%

Variable Rates To:
————–
VIRM Closed TD Mortgage Prime + 0.80%
VIRM Open TD Mortgage Prime + 1.00%

For more information, email john.hahn@td.com

John Hahn
Residential Mortgage manager

A lot of us have mortgage payments, car payments, credit card payments, personal loan payments, insurance payments, utility bills and so on. These are the basic list of things we need to pay on monthly basis.

It seems like we can never free ourselves from these basic monthly payments. Or can we?

As a matter of fact, just by having HELOC (Home Equity Line of Credit), it can help us reduce the monthly payments by good amount and let us do more. Also, it will help us save quite a bit of interests as well.

Let’s look at the following example.

Let’s say we have $35,000 debts with a couple of credit cards and a personal loan.

Current Situation:
1. VISA: $10,000 @ 18.5% = Min. Monthly Payment of $155
2. Master: $15,000 @ 13.5% = Min. Monthly Payment of $169
3. Personal Loan: $10,000 @ 15% = Min. Monthly Payment of $125
4. Total: $35,000 @ 15.36% = $5,375 in interests for a year. Min. Monthly Payment of $449

After HELOC:
1. HELOC: $35,000 @ 5% (Dec. 2008) = Min. Monthly Payment of $145
2. Total: $35,000 @ 5% = $1,750 in interests for a year. Min. Monthly Payment of $145

Difference:
Total savings of $3,625 in interests for the year and $304 monthly payment amount.

This benefit probably is known to many of us, but there is more to HELOC with other possible savings.

By having this beautiful peace of mind fund(HELOC) available, you can do the following to reduce the monthly spending even further.

1. Switch to higher deductible insurance coverage for all of your insurance and hence lower your monthly obligations. As you know, if you go with higher deductibles on your auto insurance, you get savings on premiums. – You have HELOC to cover the higher deductibles IF something happens. By doing this, you can save up to 25%.

2. When you plan to spend big chunk of money on credit cards, purchase them first with credit cards that offer you some kind of Rewards like Airmiles, Travel Points and so on. Why? You know why!! You collect the points first and pay them off with HELOC to save on interests.

3. Move your entire mortgage to HELOC if you are a mover who does not tend to stay put long enough in one place. By having HELOC as your mortgage, you will have flexibility of moving to different places any time you want without any penalty. Worried about fluctuating rates? With TD Canada Trust’s unique HELOC program, you can even lock up some portions of your HELOC mortgage with Fixed rate option.

4. If there is any lower interests offer for balance transfer from your credit card company for a specific period of time (3 month, 6 month), utilize them by transferring your HELOC into theirs for whatever the promotional period is and then move them back to HELOC once the promotional offer expires!

Now, what is the requirements for HELOC?

Contact John Hahn from TD Canada Trust Mortgage team for more detailed information. Remember, you need a house first to tap into HELOC.

John Hahn
TD Canada Trust Mortgage Manager
www.VancouverTDMortgage.com

As we expected earlier last month, Ottawa decided to cut their rates again. However, it is more than what one expected.

They cut their rates by 75 basis point or by 3/4%.

This is rather a drastic move for Canada but they had to admit we are entering a recession as Global economy situation is weakened.

Most of the major banks will follow the Ottawa’s plea to lowering the rates as one would expect.

However, we do not know how much of prime rate will be coming down from each 5 major banks.

For more detailed press release, visit the article.

John Hahn
TD Canada Trust Mortgage manager
www.VancouverTDmortgage.com

We all know Vancouver market has been cooling down. However, when you look at the mortgage approvals and funding counts, it still shows a good outcome.

Some of it is due to increasing number of people applying for Home Equity Line of Credit. Again, most of them are using them to consolidate their existing loans.

Very smart move for the economic turn down period. Saving hundreds of dollars in interests is the way to go for sure. Even if you do not need the cash right away but want to weather the financial storm for next several months, it is worthwhile to look into equity built for your home.

They are referred as HELOC(Home Equity Line of Credit).

Currently, TD Canada Trust is offering HELOC up to 80% of your current home value. Yes, you need a job with secure income.

The rate is Prime + 1%. The prime is at 4% but it will most likely come down in a week or so.

So, check out what options you might have to cut down your monthly spending.

John Hahn

TD Canada Trust Mortgage Manager

www.VancouverTDmortgage.com

It helps to understand what goes into making the decision about your mortgage approval.

Here are the key things that lenders generally consider when looking at an application.

1. Capacity to Repay

a. Gross Debt Servicing Ratio (GDSR) <= 32%

b. Total Debt Servicing Ratio (TDSR) <= 40%

2. Credit History

3. Collateral (security): The property value you are purchasing

4. Net Worth: The difference between what you own (assets such as savings and real estate) and what you owe (liabilities such as credit card debt and loans)

These are the factors one will look at when they consider you are ready for the particular property or not.

For more detailed information, please visit www.VancouverTDmortgage.com

John Hahn
TD Canada Trust Mortgage Manager

We all know mortgage process can be very complicated and energy driven. However, this does not have to be this way when you understand how it works and what it needs to get you approved.
Here are simple guideline for your understanding.

1. The Application Process:
a. Starting the application
b. Approving the Application
c. Communicating the Approval

2. Your Information Checklist
a. Personal Identification
b. Income Confirmation
c. Property Information
d. Information on your Assets and Liabilities

3. Information on whether you are purchasing or refinancing

That’s it! Not too bad huh?

For more detailed information, please visit www.VancouverTDmortgage.com

John Hahn
TD Canada Trust Mortgage Manager

Canadian Government wanted to support housing market by buying $25 Billion worth of Insured mortgages with CMHC.

The Finance Department will now buy more up to $75 billion insured mortgages to help out the housing market.

For banks in Canada, this is a great news since they would love more cash flow from selling the current mortgages to Government of Canada so that they can lend more money to new mortgage applicators.

Where does our Government get money to purchase mortgages?

They sell bonds to people with an average interest rate of 2.7% and buys mortgages which will collect about 3.78% interests.
Data from the Sun

That’s right! There is a good profit for Government of Canada by helping out the mortgage market. It is a true Win-Win situation for everyone.

For more detailed announcement, please visit the the official announcement.

John Hahn
TD Canada Trust Residential Mortgage Manager
www.VancouverTDmortgage.com

We all have seen our Greater Vancouver Realty market has been decreased in value. Let’s see how much of change we are undergoing in our local market.

This data is comparing year to year change from 2007 to 2008. Note: Based on October 2008.

Greater Vancouver: -3.9% with Average price of $534,214 (This is an average of Detached, Attached and Apartments)

Now…Let’s look at a broad range of price chages.

3 year comparison: 25.6% increase

5 year comparison: 69.5% increase

I think we see some great interesting point in data. For people who lived patiently in one place for 5 years, their property gained remarkable value of 69.5%. The market may be down for the year to year comparison but that does not necessarily mean we are all buying our homes to flip in one year term. Real estate is the most stable and secure investment method at least for people like me who does not want to bothered moving every year.

My Point? For an average Joe the Plumber, this decline we see now in the market is the greatest moment to choose our HOME… not just another HOUSE.

Lot of choices are out there, make sure you find the right ones. Also remember, you do not pay anything to realtors when they help finding you a home. So, take advantage of that and get some professional help from them.

John Hahn

TD Canada Trust

Residential Mortgage Manager

www.vancouvertdmortgage.com