In recent weeks the 5 year fixed mortgage rate has jumped from 2.89% to 3.59%. This 70 Bps jump will increase the average Burlington mortgage payment by $175.
If this kind of increase continues many believe the healthy market we are seeing will dry up.
I see many clients considering the 4 year term which is still available under 3%. The challenge with choosing this term is most buyers will need to qualify for the mortgage under the Canada Qualifying rate of 5.14%.
Another choice that is regaining popularity is the 5 year Variable mortgage. At Prime minus 40 or 2.60% its looking like a bargain. Like the 4 year term, clients need to qualify at 5.14% .
I think the 5 year rate will fall back as the bond market settles and competition for market share kicks in with the Lenders and the pie shrinks.
Until then, consider these other 2 options and call me for my advice!
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