Mihir's Market Matters Report

December 2012 Welcome to the December issue of Mihir's Market Matters Report. I would like to take this opportunity in Wishing you All the best for the holiday season.  Banks today lowered Mortgage rates on most of their products. Have a look at a quick snapshot of the Best Rates as of 6th December 2012. 5 years fixed @ 2.89% 3 years Variable @ Prime - 0.35%  3 years fixed @ 2.69% Feel free to call or email me to discuss on your Mortgage, refinancing, debt consolidation or investment needs. Mihir Oza 647-710-7374 Mortgage Agent (License # M11000672) Verico The Mortgage Practice My Motto: Right Advice. First Time, Every Time. Bank of Canada Interest Rate October 23, 2012 1.00 % December 4, 2012 1.00 % January 23, 2013 Next meeting date Source: Bank of Canada Bank Prime Lending Rate October 24, 2012 3.00 % December 5, 2012 3.00 % January 24, 2013 Next meeting date Source: Bank of Canada Conventional Mortgage - 5 Year Rate*  September 26, 2012 5.24 % October 17, 2012 5.24 % November 21, 2012 5.24 % Source: Bank of Canada *Determinant for high ratio mortgage variable qualifying rate US Federal Reserve Board Discount Rate* September 12, 2012 0.00 % - 0.25 % October 24, 2012 0.00 % - 0.25 % December 11, 2012 Next meeting date Source: US Federal Reserve *US Federal Reserve has indicated it will keep this rate until Q4 2014 Exchange Rate $CDN($US) October 29, 2012 .9992 November 14, 2012 .9962 November 30, 2012 1.006 Source: Bank of Canada Government of Canada Bonds Bond Type October 24, 2012 November 7, 2012 November 21, 2012 1 year Treasury Bill 1.09% 1.06% 1.07% 3 year Benchmark Bond Yield 1.21% 1.16% 1.19% 5 year Benchmark Bond Yield 1.39% 1.32% 1.34% 10 year Benchmark Bond Yield 1.84% 1.74% 1.76% Source: Bank of Canada Total New Housing Starts (Seasonally adjusted and annualized) Province August 2012 August 2011 September 2012 September 2011 October 2012 October 2011 Newfoundland/Labrador 3,900 3,500 3,900 3,500 3,500 3,500 PEI 1,100 900 1,400 1,300 800 900 Nova Scotia 6,800 3,700 6,100 6,100 8,300 3,300 New Brunswick 3,400 2,800 6,400 5,000 2,900 3,900 Quebec 46,900 41,100 49,600 57,800 41,400 44,500 Ontario 88,000 67,000 72,000 65,600 67,800 73,500 Manitoba 9,300 4,900 8,500 4,500 6,600 7,600 Saskatchewan 9,800 5,800 13,300 9,100 10,500 8,400 Alberta 29,300 29,100 33,300 24,900 33,100 31,600 British Columbia 30,400 25,800 29,500 29,800 29,200 30,400 CANADA 228,800 184,600 224,000 207,600 204,100 207,600 Source: CMHC Housing Now - November 2011 and November 2012. This seasonally adjusted data goes through stages of revision at different times of the year. Average MLS® Resale Price for Local Markets  City October 2011 October 2012 Halifax $ 257,414 $ 262,061 Saint John $ 161,691  $ 163,963 Quebec $ 253,914 $ 259,607 Montreal $ 320,165 $ 330,777 Ottawa $ 339,802 $ 347,581 Toronto $ 478,137 $ 503,479 Hamilton/Burlington $ 329,802 $ 367,490 Winnipeg $ 244,506 $ 259,433 Saskatoon $ 312,384 $ 327,182 Regina $ 282,313 $ 297,688 Calgary $ 398,924 $ 418,721 Edmonton $ 320,306 $ 327,880 Vancouver $ 767,225 $ 736,732 Victoria $ 475,742 $ 464,360 Source: Canadian Real Estate Association   Quarterly House Price Survey

Source: RBC Quarterly Housing Affordability Index, November 2012
Our standard RBC Housing Affordability Measure captures the proportion of median pre-tax household income required to service the cost of a mortgage on an existing housing unit at going market prices, including principal and interest, property taxes and utilities; the modified measure used here includes the cost of servicing a mortgage, but excludes property taxes and utilities due to data constraint in the smaller CMAs. This measure is based on a 25% down payment, a 25-year mortgage loan at a five-year fixed rate and is estimated on a quarterly basis. The higher measure, the more difficult it is to afford a house.