Hello and Happy 2011.  The Sun is shining although a little cold so wrap up warm.

The Canadian economy is still ticking along nicely with no sign of inflation pressure.  As a result interest rates are still very low with the 5 year fixed rate averaging 3.89 to 4.00% depending on closing date and variable rates averaging 2.30%.  A couple of mortgage financing ideas for 2011 are:

• If you have any debt that is consuming your monthly cash flow consider consolidating your mortgage and outstanding debt.  With interest rates this low the monthly savings can be huge.
• Purchasing a second property using equity in your home can help you build for retirement.  Remember the mortgage interest on investment properties is a tax right off.
• If you are locked in a fixed rate at a higher rate e.g. 5.00% or more, and you are into your last year of your term you may want to consider breaking your mortgage and taken a new term at a lower rate.  The penalty to break a mortgage in the last year of a term is much lower than in the earlier years.  You can capitalise (include in new mortgage) the penalty into the new mortgage term and with a much lower interest rate you can save money and come out ahead.
• TDMP (Tax Deductible Mortgage Plan) turns your mortgage into a tax deductible mortgage therefore allowing you to right off the interest on your mortgage payment and as a result pay down your mortgage sooner.  Call or email me for more information on this product.

If you have any mortgage financing plans for 2011 please give me a call or shoot me off an email and I will be happy to meet with you to put your plans in motion.

Don’t forget to check out my new website at www.bestratesmortgages.ca for product information and news updates.