Interest Rates<br />What does the future hold?<br />Presented by: Brad Compton<br />
Tonight’s Discussion<br />Fixed vs. Variable<br />What drives rates?<br />Where have we been?<br />Where are we going?<br ...
Fixed VS. Variable<br />
Fixed VS. Variable<br />
What Drives Rates<br />Variable – Bank of Canada<br />Fixed – Canadian Bond market<br />Bond Yield<br />Mortgage Rate<br /...
10 Year Stats<br />3.00%<br />Average Prime Rate: 4.46%<br />Highest Prime: 7.25%<br />Lowest Prime: 2.25%<br />Average Fi...
Where Are We Going?<br />UP<br />WHEN???<br />
Where Are We Going?<br />Variable – Overnight Index Swaps (OIS)<br />
Where Are We Going<br />Canadian 5 yr Bond Yields<br />
New Mortgage Rules<br />Reduced amortization to 30 years<br />Refinances up to 85%<br />CMHC no longer backing HELOCs<br /...
New Mortgage Rules<br />Financial Ruin!<br />
New Mortgage Rules<br />Roughly 30% of mortgages last year had 35 yr amortization. Most were FTHB<br />TD estimates the am...
New Mortgage Rules<br />
New Mortgage Rules<br />Default rate below .5%<br />CMHC Net Income $931M<br />71% of book is on loans with an LTV of less...
Who is Responsible?<br />
Thank You<br />Brad Compton<br />Invis Mortgage Agent<br />Twitter: bcomp123<br />www.YourLowMortgage.ca<br />
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Interest rates 02 02 11

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Toronto Mortgage Broker Brad Compton talks about the future of Canadian Mortgage Rates as well as the details of the recent Mortgage Regulation Changes in Canada. You might be surprised who is actually behind te recent changes.

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Interest rates 02 02 11

  1. 1. Interest Rates<br />What does the future hold?<br />Presented by: Brad Compton<br />
  2. 2. Tonight’s Discussion<br />Fixed vs. Variable<br />What drives rates?<br />Where have we been?<br />Where are we going?<br />New Mortgage rules<br />
  3. 3. Fixed VS. Variable<br />
  4. 4. Fixed VS. Variable<br />
  5. 5. What Drives Rates<br />Variable – Bank of Canada<br />Fixed – Canadian Bond market<br />Bond Yield<br />Mortgage Rate<br />Expenses<br />Risk<br />Profit<br />
  6. 6. 10 Year Stats<br />3.00%<br />Average Prime Rate: 4.46%<br />Highest Prime: 7.25%<br />Lowest Prime: 2.25%<br />Average Fixed: 6.49%<br />Highest Fixed: 7.75%<br />Lowest Fixed: 5.19%<br />5.24%<br />
  7. 7. Where Are We Going?<br />UP<br />WHEN???<br />
  8. 8. Where Are We Going?<br />Variable – Overnight Index Swaps (OIS)<br />
  9. 9. Where Are We Going<br />Canadian 5 yr Bond Yields<br />
  10. 10. New Mortgage Rules<br />Reduced amortization to 30 years<br />Refinances up to 85%<br />CMHC no longer backing HELOCs<br />March 17th deadline<br />
  11. 11. New Mortgage Rules<br />Financial Ruin!<br />
  12. 12. New Mortgage Rules<br />Roughly 30% of mortgages last year had 35 yr amortization. Most were FTHB<br />TD estimates the amortization decrease will impact 20,000 sales<br />Amortization reduction will drop average affordability by 6-7%<br />Roughly 10% of mortgages currently refi above 85%<br />Current default rate of .42%<br />
  13. 13. New Mortgage Rules<br />
  14. 14. New Mortgage Rules<br />Default rate below .5%<br />CMHC Net Income $931M<br />71% of book is on loans with an LTV of less than 80%<br />9% return on securitization activity<br />
  15. 15. Who is Responsible?<br />
  16. 16.
  17. 17.
  18. 18. Thank You<br />Brad Compton<br />Invis Mortgage Agent<br />Twitter: bcomp123<br />www.YourLowMortgage.ca<br />

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