Found this on the mississauga news website.


http://www.mississauga.com/mi/business/story/3560825p-4114292c.html
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THE MISSISSAUGA NEWS
Wells-Fargo offering 40-year mortgage


The Mississauga News
Jun 22, 2006

A Mississauga financial institution has become the first in Canada to offer 40-year mortgages.
Wells Fargo Financial Corporation (formerly Trans-Canada Credit) announced Tuesday that it will make the longer-term financing available through its 165-store network across Canada.

"The longer amortization period reduces the monthly payment, making it affordable for buyers and increasing their monthly cash flow," said Richard Valade, president of the company that employs 2,700 people nation-wide.

The firm expects to find the most interest in areas where house prices are already high, such as Vancouver, which has the highest prices in the country and Calgary, where the market has jumped 44 per cent in a single year.

In a press release, the company said the four-decade mortgage will appeal to potential owners who otherwise could not afford to buy in a high-price, high-interest market.

Some critics charge the longer payback period will just punish young homeowners down the line, since they will be saddled with higher interest costs and may have difficulty saving for retirement.

"This will actually have a more negative impact on savings at the margins because people won't be able to put money aside and they will be paying interest for much longer periods of time," said Benjamin Tal, senior economist at CIBC World Markets.

Wells-Fargo's move to a 40-year mortgage comes just three months after Canada Mortgage and Housing went to a 30-year term and Genworth Financial followed with a 35-year mortgage.

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Amit Shah
Financial Advisor
Cell : 647-296-2609

40 Year amortization and much more to come!

Are you seeing the real picture?

40 yr amortization is indicating mixed real estate market from the hot sellers market. Soon the sellers will offer more to the buyers in order to get their homes sold. Real estate market conditions:
http://realestate-ontario.com/realestatemarketconditions.htm

A home owner in Hudson, Quebec just west of Montreal has offered a FREE Car to the buyer of his 289,000, four-bedroom cottage. MLS http://www.mls.ca/PropertyDetails.aspx?PropertyID=4597982 #1205701. The market is shifting in favour of the buyer. Recent statistics show the Hudson market now has 10 listings for every buyer. The real-estate board of greater Montreal calls that a balanced market, favouring neither buyers nor sellers.

Philip Sober our President and CEO at Royal LePage Real Estate Services said, "In most of the country, we're just at the end of a cycle. It's been a five-to seven-year expansion, and it's about time that price increases started to slow down."

According to the Royal LePage tally, an average Calgary bungalow cost $371,200 in the April-June period, up 50.4 per cent from a year earlier, while a typical two-storey house advanced 54.6 per cent to $397,867.

While prices appreciated in all major cities, the Royal LePage survey said there were substantial regional differences, as the central and eastern provinces saw slower growth.

Standard two-storey house prices were up 7.6 per cent in the Atlantic region, while rising 0.9 per cent in Montreal, four per cent in Ottawa and 4.4 per cent in Toronto.

By contrast, the year-over-year increase for a two-storey home was 15.3 per cent in Winnipeg, 10.7 per cent in Saskatchewan, 38.6 per cent in Edmonton, 10.4 per cent in Vancouver and 11.4 per cent in Victoria.

In my opinion, the sellers will be faced with many challenges and will opt in favour of Realtors who are full time professionals with good marketing and selling skills. Quick sale of homes by simply listing on MLS system might not happen any more in the GTA. More effort will be needed to market and sell homes for their best market values.

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/

Amit bhai, pls be original. All this news is already in the newspaper. tell us what we donot know like will the interest rates go up in 6 months or will the price of homes go up in Bovaird/Chinquosy when all those new homes come up in late 2006? Thx

Ghar ke sapne,

Buddy, I know the news is out there. But people read the headlines, "House prices to rise 9.2%". Do not look at the headlines quoted in the news, but look into the specifics>your Region>City/Town>neighbourhood etc..

Your local Realtor can provide valuable insight into neighbourhood market conditions. So consulting a professional before making a buying/selling decision is vital.

To answer your second question about Brampton: In my opinion prices are not going to go up for some time. The builder inventory (supply) is more than the demand. North Brampton is a great long term investment and is not meant for short time flippers.


Cheers,

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/

Thx Amit bhai for keeping us in know. But in the last few years prices in new parts of West Brampton and East Brampton are keeping pace with Misissauga in its own respective way. Maybe demand in Brampton is being fed by other unafforable areas. So maybe it is short term flippable in a way. Do not get me wrong, but I think it is still a positive leverage.
On short term fippable, Amit bhai in your esteemed view which is the hottest areas?

Hottest area is a realtive term. Something hot for one may not be hot for some other person. Buyers' needs vary. Staying closer to public transit, HWYs, schools, shopping is mostly preferred.

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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/