As I predicted, the first of many Lenders has announced a small but promising reduction in its Fixed 5 year mortgage rate.
Merix has reduced its 5 year Genworth Insured mortgage to 3.64% from 3.69%
I predict because of the 5 year bond rate dropping to August levels rates may drop more in the near future.
In the meantime, the Variable at 2.60% and 2 year and 3 year mortgages at 2.99% and 3.19% are still attractive
Use an experienced Mortgage Broker and get the best advice, service and rates.
Wednesday 25 September 2013
Thursday 12 September 2013
Mortgage Rates Soar
The 5 year term has gone up again this week reaching as high as 3.79%. This is an 90 point jump since July. The average mortgage payment in Burlington is up about $225.00 a month.
What are the Alternatives?
Shop around, I still have some Lenders at 3.59%.
Another good Alternative is the Variable mortgage which has become popular again. Prime minus . 40 gives you a rate of 2.60%.
The risks are an increase in the Bank of Canada rate and you need to qualify at the Canadian qualifying rate of 5.49%. I think its a good choice for qualifying clients.
Lastly choose a shorter term like a 2 Year at 2.99%
Overall, I think the rates will fall again as the Bond settles down and greed for market share amongst the lenders forces more competition.
What are the Alternatives?
Shop around, I still have some Lenders at 3.59%.
Another good Alternative is the Variable mortgage which has become popular again. Prime minus . 40 gives you a rate of 2.60%.
The risks are an increase in the Bank of Canada rate and you need to qualify at the Canadian qualifying rate of 5.49%. I think its a good choice for qualifying clients.
Lastly choose a shorter term like a 2 Year at 2.99%
Overall, I think the rates will fall again as the Bond settles down and greed for market share amongst the lenders forces more competition.
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