Financial update from Prime Mortgage Works Ltd.

Weekly financing update from a trusted source – Callum Greig from Prime Mortgage Works in Victoria, BC – Callum can be contacted at 250-580-5626.

There is absolutely no reason for buyers not to make a move in this extremely favourable lending climate – bargains are out there – take the plunge and enjoy the results!

Good Morning,

As the Spring Market continues we are seeing the “proof in the pudding” as far as the most recent mortgage rule changes have had on both resales and a clients’ ability to refinance their mortgage. CMHC released a quarterly report this morning and truly the number reinforce what we are already feeling in the marketplace.

* CMHC wrote $8.2M of mortgage insurance in the Q1 of this year, compared to $19B in Q1 2012

* This decline is partially due to the government forcing CMHC to reduce the amount of bulk insurance (low ratio) they provide the banks

* CMHC Arrears rate remains very strong at a mere .35% (AKA Canadians pay their mortgages)

* Total insured mortgages by CMHC has dropped 54% from Q1 in 2012

* CMHC total Insurance in Force is $562.5 Billion Dollars (a decrease from the end of 2012 by $3.5B)

This news would appear to be what Minister Flaherty ordered as far as a restraining of the housing market. Further evidence of needing to continue this path came yesterday as the Bank of Canada kept interest rates put yesterday, analysts now predicting an increase in mid to late 2015. With Prime Rate possbily held until 2015, Variable Rate mortgages may find their way back en vogue though again under the new mortgage rules, are much more difficult to qualify for.

Finally, as hinted the last couple of weeks, FIXED Rates are rising this week some 5-10 Bps though are likely to float back down in the near future once more challenging economic realities come to light in Japan, China and the continued discord in the European Union.

For the most up to date rates, visit:


 *   TSX  -17.90 to 12,732.61
 *   DOW -106.59 to 13,302.80
 *   Dollar -.0001 to 96.39
 *   Oil -0.64 to 92.49
 *   Gold +7.10 to 1398.90

*these numbers have been taken from<>  at 8:00 AM EST

Canadian 5 year bond yields markets +.001 to 1.48 The spread (based on the 5 year published rate of 3.19%) is WELL BELOW the comfort zone at 1.71

The rate of return on your bond, can be read through a yield curve, If the increase in bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise.  The comfort zone is between 1.90 and 2.10

Callum Greig    
Franchise Owner    
DLC – Prime Mortgage Works Inc.
Office: 250-708-2063
Cell: 250-580-5626
Fax: 1-866-845-8513    
Twitter: @primemortgagewx

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