Banks try more up-front pricing – Canadian Mortgage Trend
You’ve probably seen them before: “special” rate offers from banks listed online, in newspapers, on billboards, etc. And while the word “special” sitting next to a number may look good at first, rates of 3.99%+ are anything but. Fortunately, more and more banks are now listing their best mortgage rates up-front. TD, Scotiabank and BMO are just a few of the big banks who are now posting more reasonable rates, with CIBC and National Bank expected to follow.
In a time when mortgage consumers have more self-education options online than ever before, including mortgage rate comparison sites, the banks have no choice but to stop posting artificially high advertised rates and start posting their more competitive options. If mortgage brokers are able to offer buyers rates closer to 2.99% up-front, why would anyone choose to lock-in at 3.99% with their bank? Yes, buyers are often able to rate-match with their lenders, but not offering these rates up-front first can hurt a buyer who doesn’t know this is an option.
First-time buyers are back after 2012 slump in sales - Financial Post
A strong start to 2013 is providing hope that the overheated housing market in Toronto is, in fact, not heading for a crash. “January can be a very volatile month. I’m usually struggling for buyers. But I cannot remember having this much business coming into the new year,” says listing agent Carolyn Griffis of ReMax. Mortgage brokers are also reporting steady numbers of first-time homebuyers looking for pre-approvals, proving that many are tired of waiting for the housing market to cool or crash. Continue reading
