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Kelleway Mortgage Architects

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Buy American.  I am.
by Warren Buffet
New York Times
October 17, 2008
 
 "A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.  And most certainly, fear is now widespread, gripping even seasoned investors.  To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competititve positions."
 
PDF link to full article of Buy American. I am.
 
Rate Announcement
Bank of Canada
October 21, 2008
 

Glen's Summary.  The Bank of Canada (BoC) did move rates this morning.  It decreased the overnight rate (i.e., considered to be the wholesale rate of lending) which means that the prime rate also went down to 4.25% .  The prime rate is what the BoC suggests that lenders use as their short term lending rate.  BUT as we saw with the last coordinated rate reduction on October 8, even though the BoC reduced its rate by 1/2 percent, the major charter banks only reduced theirs by 1/4 percent.

So when you see a posted prime rate by the charter banks (e.g,, TD prime rate, Scotia prime rate or "your bank's name" prime rate) do not expect it to automatically match the BoC rate.  At this time there are a few lenders whose prime rates do not match the current BoC prime rate.

highlights     Expect most lender to have:

                                     1)  their new secured lines of credit at prime + at least 1%

                                     2)  all new floating rate mortgages priced at prime + 3/4 % or higher

 PDF link to Bank of Canada Rate Announcement

 
Special Update:  Canadian Mortgage
Scotiabank Group
September 25, 2008
 
"The bottom line is that we do believe there to be considerable downsides to the Canadian housing market, but that comparisons of Canadian mortgage market prospects to the U.S. experience are off-base."
 
highlights
                 1.  Debt growth over the full cycle
                  2. Leverage - night and day comparisons