Bank of Canada leaves Prime rate as is.
Prime remains at 4.75%
Surrey, BC - Sept 03, 2008 - The Bank of Canada chose to leave Prime as is today, citing the drop in Oil as reducing the inflation fears they once held and likely indicating little change in Prime for the foreseeable future. With the US stuck in a recession they seem unlikely to spend their way out of, there is little chance of rates looking upward now until late 2009 or more likely 2010.
This makes variable rate mortgages the go to product currently. Despite some lenders dropping their discounts on some variable rate products due to profit taking and nearing the end of their fiscal years with their goals met, others are still offering good products.
So what does this mean for you? If you are in a variable product we set up for you, stay in it! Now is not the time to lock in, as fixed rates are now showing signs of dropping a little further, now 5 year fixed are below 5.50% with some lenders. However, if you are still in a fixed rate (5.00% and above) and have not heeded our earlier comments that now is the time to break your term and move into a variable, now is the time! Call us for a no obligation review so we can show you why it makes sense. |
Changes to High Ratio Insurance Policies made by Gov't of Canada.
The Government of Canada made dramatic changes to High Ratio Insuranced mortgages which will take effect in October this year. Many lenders have now followed the upcoming rules early and cancelled 0% down and 40 year amortizations on new products, but there are a few left.
If you or someone you know wanted to buy a new home with 0% down or have a 40 year amortization to keep your cash flow at the lowest possible, this window is closing soon, so you need to act now. Call us to discuss!
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| Did you know?
We offer secured lines of credit through a number of lenders? We can help you access the equity you have built up with a Home Equity Line of Credit at anytime. |
Lenders making other changes without advising us
We recently learned that MCAP has made changes to their fixed term mortgages in that they are completely closed in the first 3 years unless you sell. This means that if you want to refinance your home or just move lenders, you can't for the first 3 years (unless you stay with MCAP). We are not happy about these changes and have told MCAP, but don't expect any changes soon. For those clients who are with MCAP, please contact us before you lock in to a fixed rate, we would like to review this with you.
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