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. Some lenders are 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 some good products.
So what does this mean for you & your client? Variables are likely the best route for most clients today, as rates will likely remain low for the next year or so. Fixed rates are low however at 5.25% for 5 years currently, so for clients with tight budgets this may be a great way to go. As always, having a proper mortgage plan setup with the right strategy will always yield the best results. Have your clients talk to Michael today. |
