More Canadian consumers turning to brokers for their next mortgage

[mortgagebrokernews.ca]

A growing number of Canadians are opting to use mortgage brokers instead of going to the bank branch, a recent study said.

According to Maritz Research, which conducted the study on behalf of CAAMP, the mortgage broker channel handled 23 per cent of all mortgage activity in 2008. This number was higher in Western Canada, (34 per cent in Alberta and 27 per cent in British Columbia), as well as amongst females (26 per cent), who were more likely than men (20 per cent) to deal with brokers.

"In the past, the first or only place a person would go when looking for a mortgage was to their local bank, however more and more Canadians are now seeking out the services of Mortgage Brokers to help them navigate the biggest purchase of their lives," said study author Rob Daniel, managing director, Maritz Research Canada, to the Financial Post.

Another strong demographic for mortgage brokers was with young Canadians. In the 18 to 34 demographic brokers represented a 28 per cent share. With 53 to 54 year olds this decreased to 24 per cent, and with the 55 and older crowd it was even lower, at just 17 per cent.

One oversight in the Financial Post article in which the results were published was the author's statement that "mortgage brokers will charge fees. In one case, a low risk $240,000 mortgage on a $320,000 home in Toronto brought $3,200 in fees."

Nowhere does it mention that brokers take their fees from lenders.

Latest Mortgage Rates

This edition of Weekly Mortgage Rates Minder has the latest, best Ontario Mortgage Rates. At Dominion Lending Centres, we work on your behalf to find the mortgage that suits your needs. Best of all - our service is "free".* It's the selected lender that pays us and YOU get the best rate. *(O.A.C., E.&O.E.)

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Terms Posted Rates Our Rates 6 Months 4.60% 3.85% 1 YEAR 3.65% 2.35% 2 YEARS 3.95% 2.95% 3 YEARS 4.50% 3.25% 4 YEARS 5.19% 3.85% 5 YEARS 5.59% 3.79% 7 YEARS 6.60% 5.25% 10 YEARS 6.70% 5.35% Rates are subject to change without notice. *OAC E&OE Prime Rate is 2.25%.

Variable rate mortgages from as low as Prime -.15% Our Ontario Mortgage Rates are subject to change without notice. Fixed mortgage rates shown in table above and quoted variable mortgage rates are available nationally to qualified individuals. Some conditions may apply. Lower rates may be available in certain regions, or to those with higher credit scores or higher net worth – check with your Dominion Lending Centres Mortgage Expert for full details. *O.A.C., E.& O.E.

Are Toronto area house prices stabilizing?

Posted: February 19, 2009, 4:31 PM
By Justin Robertson, National Post

Toronto’s real estate market is showing faint signs of stabilizing.

There were 2,044 homes sold in the first half of February, compared to 2,775 sales during the same period in 2008, the Toronto Real Estate Board said today.

The average selling price was $364,748, compared to $385,735 in the same period last year (and $343,632 in January, 2009). At the peak, in April, 2008, the average GTA house price was $398,687.

“If this trend continues into the spring, it could point towards average home prices leveling off between $360,000 and $370,000,” Jason Mercer, the board’s senior manager of market analysis.

“There is not too many people out there making big ticket purchases at the moment - and that includes homes,” said Mr. Mercer. ‘‘But on the supply side of the market there still quite a lot of listings out there, meaning there are more properties listed on the housing market for people interested in buying.”