TD Bank 1st to Move to Adjust Rates

Three times this month Toronto-Dominion Bank, Canada's second-largest bank, has been first to lower its prime rate following decisions by the Bank of Canada (the central bank) to lower its overnight rate. Toronto-Dominion's biggest rivals followed suit the same day.

For example, on Oct.8, TD Bank was the first to announce a cut that day with a statement at 1 p.m., followed by Canadian Imperial Bank of Commerce (CIBC) 43 minutes later. Royal Bank of Canada, the country's largest bank, was next at 2:32 p.m., followed by Bank of Nova Scotia and Bank of Montreal.

Two days later, the banks reduced their rates again following the federal government agreement to buy as much as C$25 billion of bank mortgages. TD was first, announcing a 15 basis-point cut at 12:31 p.m., followed by Scotiabank at 1:23 p.m.

The Canadian Banks broke with tradition on Oct. 8, lowering their prime rate by 0.25%, short of the Bank of Canada's 0.50% cut.

TD Bank led again on Oct. 21. following a 9 a.m. Bank of Canada announcement of a 25 basis-point cut. TD cut its prime rate 35 basis points at 4:15 p.m. Canada's five other largest banks followed over the next 48 minutes.

What does all this mean for the consumer? At the end of the day, none of these banks gain much advantage by cutting first because new rates don't go into effect until the next day.

Canada's six largest banks are now offering the same prime rate of 4 percent.

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Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com
www.ginaburgio.com

Each VERICO Broker is an independent owner operator.

US Fed Lowers Rate to 1 percent

The US Federal Reserve has just matched a half-century low... they have lowered their interest rate by a half-point to 1.0%, in an effort to settle the current economic crisis. The funds rate has not been lower since 1958, when Dwight Eisenhower was president.

The Fed also stated that they would "monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability."

What does all of this mean for the real estate industry? Share your thoughts.

Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com
www.ginaburgio.com

Each VERICO Broker is an independent owner operator.

Iceland Raises Interest Rates to a record 18 percent

Iceland raised interest rates to a record 18 per cent from 12 per cent yesterday as a condition of a proposed $2bn loan from the International Monetary Fund to help rescue the stricken country.

Iceland applied for the emergency loan after its banking system collapsed and is seeking another $4billion from other central banks.

Following the collapse of their banking system, some economists forecast that Iceland's economy unemployment to rise around 8 percent and inflation to hit 20 percent or more.

Despite the ongoing crisis in the US and Canada, things could be worst.... when you look at what's going on in Iceland!

Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com
www.ginaburgio.com

Each VERICO Broker is an independent owner operator.

Mortgage Rates

Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com
www.ginaburgio.com

Each VERICO Broker is an independent owner operator.

Cdn Gov't to Purchase up to $7.0 Billion of Mortgages

The Canadian Gov't announced today that they will, via their CMHC crown corporation, purchase up to $7billion of insured mortgage-based securities maturing in 2013.

The gov't purchased their first round of mortgages worth $5billion last Thursday.

This is forming part of the Cdn gov't $25billion plan to help banks weather the credit crisis and free up cash for lending.


Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com
www.ginaburgio.com


Each VERICO Broker is an independent owner operator.

Canadian Banks are Not Expected to Adjust Prime Rates

Many economists in Canada are expecting the Canadian Banks to hold their Prime Rates, despite the Bank of Canada decision today to drop the overnight lending rate by a quarter point to 2.25%.

The Canadian Banks earlier this month followed a similar trend when the Bank of Canada lowered their rate to 2.50% and the Banks did not pass on the full extent of the cut when the Banks lowered their Prime Rates at that time.


Some economists forecast that the Bank of Canada will lower their overnight lending rate to 2.00% by year-end.


Prime Rates are used as a benchmark to set most consumer loan rates in Canada, such as mortgages and lines of credit. Unlike Canada, many US banks peg mortgage rates off LIBOR, the rate on inter-bank borrowing. That means US banks can match a central bank cut and drop prime rate with little impact on the profitability of their consumer loan portfolios.





Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com
http://www.ginaburgio.com/









Each VERICO Broker is an independent owner operator.

Bank of Canada Lowers Rate to 2.25 percent

The Canadian Central Bank cut rates today by a quarter point to 2.25%.

This rate cut today by the Bank of Canada was left than the half point cut expected by some economists. The reaction to this was also seen by the Canadian Dollar... falling to a three-year low following today's announcement.

It will be interesting to see how various Canadian financial institutions react today to the news... in terms of their prime rates and mortgage rates.

The Central Bank commented however that it would likely have to lower rates further to combat the effects of the global financial crisis. "In line with the new outlook, some further monetary stimulus will likely be required to achieve the 2 percent inflation target over the medium term," the central bank said in a statement announcing the lowest overnight lending rate since September 2004.

The Bank of Canada also commented on the US Recession, stating, "The global economy appears to be heading into a mild recession, led by a US economy already in recession."



Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com
http://www.ginaburgio.com/

Each VERICO Broker is an independent owner operator.

Canadian Central Bank Expected to Lower Rates

The Bank of Canada is expected to lower its overnight lending rate by as much as a 0.50% tomorrow. If so, this will be the second time in two weeks that the Bank of Canada has taken action to lower rates as part of its efforts to help tame the global financial crisis.


Their overnight rate influences the prime lending rates charged by the chartered banks in Canada. It can affect borrowing costs on variable-rate mortgages and lines of credit.
It will be interesting to see how the Banks react.


The last time the Bank of Canada announced a half-point cut on Oct8, not all the chartered banks passed on the full effect to customers.


Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com
http://www.ginaburgio.com/





Each VERICO Broker is an independent owner operator.

Canadian Dollar vs US Dollar and the Price of Oil

Many people were wondering last week why the Canadian Dollar started to lose value against the US Dollar, when it appears that the USA was in greater crisis mode in comparison to Canada.
Well here is why....

Canada is one of the world's largest producers of oil and holds oil reserves second only to Saudi Arabia, which makes Canada very reliant on its most prized commodity. It is also the largest supplier to the world's biggest oil consumer - the United States. Therfore, rising oil prices tend to be good for Canada/bad for the U.S., while falling oil prices tend to be bad for Canada/good for the U.S.

As you can see from the chart above, price movements USD/CAD and Oil are inversely correlated from each other - meaning as oil trends higher, USD/CAD tends to trend lower and vice versa.

Since January 1988, USD/CAD and Oil have had about a 68% inverse correlation to each other. This is a pretty strong correlation.

Gina Burgio, Mortgage Agent

VERICO Designer Mortgages Inc.

FSCO Lic. No. 10194

Toll Free: 1-877-345-6265

Fax: 1-877-345-6256

Email: gina@ginaburgio.com

Each VERICO Broker is an independent owner operator.

Refinancing

Mortgage refinance is becoming a popular financial remedy, especially for those who are burdened by large monthly installments or multiple debts. Mortgage refinance can prove beneficial in several ways:

• Helps obtain a lower fixed rate
• Convert an Adjustable Rate Mortgage into a Fixed Rate Mortgage
• Consolidating multiple mortgages into one
• Pay off other debts
• Make cash provisions for emergency situations

I can help you decide whether it is the right time for you to refinance. The decision to refinance should be carefully evaluated to avoid any complications at a later stage. By carefully studying the status of your current mortgage and comparing it to your income and other debts, I can help you pick the refinance solution that best suits your current financial status.

I am able to offer some of the lowest and most competitive mortgage refinance rates in the market. Regardless of your requirement, whether it is to consolidate existing mortgages or obtain a better rate, I get you the best deal possible. I will provide the necessary guidance that you need in making the right refinance decision.

Contact me today!

Sincerely,

Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
FSCO Lic. No. 10194
Toll Free: 1-877-34-LOAN-5 or 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com

Join Our Team!

We offer employment opportunities for Mortgage Broker and Agent positions.


Some advantages you get by working for us:

• Preferred Commission Compensation Package


• Access to numerous Lenders and Loan Programs


• Very experienced staff including management and processing staff


• Training on every aspect of the mortgage lending industry


• Professional work environment including office space, private meeting rooms, most recent computer software, individual email, current mortgage origination software.


• Residential Mortgage and Commercial Lending


• Plus much more

We take pride in our Mortgage Brokers/Agents and their abilities, making sure they are a good fit for our mortgage team.

If you are interested in working for a company who maintains a high quality of service towards their customers along with the items mentioned, contact our office for an interview at either 1-877-345-6265 or e-mail your resume to gina@ginaburgio.com.






Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
FSCO Lic No. 10194
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com

Each VERICO Broker is an independent owner operator.

Services Offered

As a licensed Mortgage Agent, I offer the following services:

• New Home Financing
• Refinancing Existing Mortgages
• Mortgage Renewals
• Home Equity Loans
• Mortgages for Self-Employed
• 2nd Mortgages
• Line of Credit
• Debt Consolidation

In most cases my service is FREE of charge. I am compensated by the institution that funds your mortgage.

My services are offered in Ancaster, Hamilton, Stoney Creek, Dundas, Grimsby, Niagara Falls, St. Catharines, Burlington, Oakville, Toronto, Brantford, Kitchener, Guelph, Cambridge, Milton, Mississauga, and the surrounding areas.

Call Today: 1-877-34-LOAN-5 or 1-877-345-6265

Why Use a Mortgage Broker?

As a licensed mortgage agent, I work for you and you alone. This independence allows me to offer you impartial advice about lenders and the products they offer. I guide you through the process of choosing the right mortgage.

I have access to various banks, credit unions, trust companies, and other lending institutions to find you the BEST RATE.

In most cases my service is FREE of charge. I am compensated by the institution that funds your mortgage.

VERICO

The VERICO Mortgage Brokers Network is one of the fastest growing mortgage organizations in Canada.

Since 2005 the network has grown to over 150 locations throughout Canada that employ over 1,000 agents who collectively originate in excess of $8.0 Billion in annualized mortgage loan volume.

Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com







Each VERICO Broker is an independent owner operator.