Interest rates are on the rise, I might add this was predicted by yours truly two months ago. As a Consumer, with a mortgage renewing in 1995, you are probably wishing time would fly so the renewal from your lender would announce a palatable rate (most lenders can only reserve rate for 15 days prior to a renewal). As a Consumer looking to buy a house in 1995, you have already been to your bank to find out that most can only hold rates for 60 days. What can be done to avoid rate anxiety?

Because Consumers have complained about the problem of holding rate, we brokers, as mortgage wholesalers, have done our homework. We now can hold mortgage rates for up to six months for those of you who are looking to renew in 1995, and for you, the potential purchaser, we can hold rate for up to one year under what is called a "cap rate" plan. What makes our Lenders different? Market Share! Our lenders are trying to increase their share of the market. They know that we produce clients that they may never see. As a result, we can dictate the terms by which they (the lenders) can have you as a client. For those of you who like numbers, if economists are correct in their assumption that five year mortgage rates will go up another two percent, a $100,000 mortgage in July, 1995, will cost $1050 per month. If you were to lock in today with rates of 10%, the payment would be $895, a saving of $155 per month ($9300 over 5 years), or if you had chosen to keep the higher payment ($1050 per month), you would have reduced the amortization to 15 years instead of 25 years, a potential savings of over $100,000 (that's 10 years at $895 per month).

Trying to sell your home before buying a new one? Opportunity is knocking! Refinancing now, while rates are still acceptable can certainly have an impact on the sale of your home versus your neighbours. If your home has an assumable mortgage at a rate that is lower than the market rate, your home will sell faster. Creative financing works, set up an appointment to discuss the best way of using mortgaging to sell your house.

Nobody can accurately predict where rates will ultimately end up, but I do strongly believe that choosing a five year term at this time is wise, especially for first time buyers. I also believe that home ownership is the last tax free insulation against inflation, and is a sure bet to ease retirement anxiety.

You have asked us to produce longer rate commitments, and we have complied. You have asked us to provide greater flexibility and better rates, we can! Your peace of mind dictates that your next mortgage should be handled by a licensed mortgage broker.