5 Year Term not the only Choice

With the rapid increase in 5 Year fixed mortgage rates, other choices have become interesting to the consumer.
Since this weeks hike, 5 year terms run between 3.49% and 3.79% depending on the Lender.

The Variable mortgage seems to have come back into favour.  Bank Prime of 3.00% less a discount of .40 give the client a rate of 2.60% and no Bank of Canada hike in sight and the client can lock in at anytime.

7 Year terms at 3.89% and 4 year terms at 3.24% are interesting alternatives as well.

As always, I spend time with my clients explaining the different terms and the Pro and cons for each.

Mortgage Rates Rising Again

If you are a Realtor, get your clients pre approved as soon as possible. Rate are rising again this week.
Several of our non bank Lenders have advised us they are going up by 10 or 20 bps tonight at midnight. No word from the major banks.
Getting pre approved can save your clients a rate for up to 120 days.