Below is a great article that appeared in the Vancouver Sun today. I encourage you to share with your business partners and clients to spread the good word. I have also included some interesting mortgage statistics from the Canadian Accredited Mortgage Professional Association Survey.
As a quick mention, we have a 5 year fixed rate today for 3.49%. This rate will be going up tomorrow. If you or any of your clients is interested in securing this rate, we need a completed online application sent in before 3pm. Link here to access. OR call our office at 604 536-3802 and my team can take a phone application. Hope you have a great rest of the day!
BC to Show Solid Economic Performance: Forecast
B.C. is expected to show a solid economic performance through 2011 despite the country’s slowing growth, says a report released Wednesday.
The Scotiabank forecast said areas that have strong commodity-based economies in the west, east and north of the country will see relatively stronger growth, as compared to places largely dependent on manufacturing.
B.C.’s GDP growth of 2.8 per cent will be supported by strength primarily in coal and copper, and in increased shipping activity. Private sector services are improving and gains are expected in professional and technical services as well as transportation, warehousing and information technology.
“The slower national momentum over the spring and summer is expected to persist into 2011, reflecting a number of factors, including a winding down of inventory restocking, a cooling off in housing activity and a more cautious consumer,” said Scotia Economics economist Alex Koustas.
“Meanwhile, resource-related activity is ramping up alongside strong emerging-market demand for key industrial products, which along with a weaker U.S. dollar, is boosting commodity prices,” said Scotia Economics economist Alex Koustas.
Rising prices for oil and metals will play a role in bolstering certain parts of the country, the report said.
However, the low U.S. dollar, which creates a higher loonie, will also hurt export-oriented factories, which have been key to helping the economy grow in provinces like Ontario and Quebec over the last year, Scotiabank said.
In B.C., copper prices are at very lucrative levels, the report said. There is room for production expansion and an 8- to 10-per cent increase is expected for 2011. Coal production is now back to pre-recessionary levels with a 17 per cent rebound year-to-date. Natural gas assets are expected to attract significant investment in coming years.
Transportation has picked up significantly with the turnaround in commodity markets and increases in worldwide trade and traffic.
B.C. manufacturing employment has dropped a cumulative 20 per cent since 2007, including a 1.8 per cent drop year-to-date. Forestry has shown a moderate rebound, but shipments are still well below pre-recessionary levels and notable improvement is unlikely in the near-term given a weak American housing outlook, Scotiabank said. Exports to China have been rising due to demand for B.C. specialty framing and wood planks.
B.C. has shown the fastest retail sales growth in the country at 6.6 per cent year-to-date due to strong employment gains, wage increases and last year’s housing market recovery; however last year’s base was low and sales may have been brought forward by the mid-year shift to the harmonized sales tax.
Alberta is forecast to see the most economic growth among provinces in 2011 — 3.5 per cent. Saskatchewan and Newfoundland and Labrador are not far behind, with expected growth rates of 3.3 and 3.1 per cent, respectively.
In Ontario, a modest economic expansion of two per cent is anticipated next year and that follows what’s projected to be 3.5 per cent growth this year. Quebec’s growth for next year it pegged at 1.9 per cent.
Elsewhere, Manitoba is forecast by Scotiabank to see 2.5 per cent economic growth next year, New Brunswick two per cent, and 1.9 per cent for both Nova Scotia and Prince Edward Island. With files from Derek Abma
ANNUAL STATE OF THE RESIDENTIAL MORTGAGE MARKET IN CANADA
2010 Significant Statistics
• 35% of all mortgage holders have either increased their payments or made a lump sum payment on their mortgage in the last 12 months
• Vast majority of Canadians have ability to afford higher mortgage payments. 84% said they could handle monthly increases of $300 or more in their monthly payments
• 90% of Canadian homeowners have at least 10% equity in their homes, 81% have over 20% equity
• 70% of Canadians are satisfied with their mortgage terms
• Despite low Bank of Canada interest rates reflected in low variable rate mortgages, a majority (66%) of Canadians still have a five year fixed mortgage, 29% have variable mortgages and 4% a combination
• Overall, 22% of mortgages have an amortization of greater than 25 years compared to 18% last year
• Overall home equity is 72%. For homeowners with mortgages, equity level averages 50%
• Mortgage rates continue to drop. Average mortgage rate is 4.22% versus 4.55% last year. For those who took out a mortgage in the last year, the average rate was 3.75%, 72% of those renewing saw a decrease in their mortgage rate
• Overall, mortgage brokers account for 25% of all mortgages, for new mortgages in the past year this number rises to 40% • As of August 2010, there was over $1 trillion in outstanding residential mortgage credit in Canada
• Mortgage arrears rate remains stable at 0.42%, lower than for most of the 1990s
Shop Your Mortgage. Save Money