 Lenders making dramatic changes.
Prime remains at 4.75%, Fixed rates going up by .35%.
Surrey, BC - Sept 27, 2008 - Most lenders in Canada have made some dramatic changes to both their fixed rate products & variable rate products as the US Financial crisis continues. While not related directly to the US situation, lenders here jacked their fixed rates by .35%, leaving a 5 year discounted rate ranging from 5.75% - 5.90%, and more importantly, most of them have reduced the discounts on their variable products from Prime minus .60, .50 or .40% for a 5 year closed variable to no discount off of Prime. Why are they doing this? With the word mortgage a bad word for many investors, lenders here are having to increase their profit margin to cover higher borrowing costs. It also has to do with the end of the year for lenders (many have a fiscal year end of October 31st) and trying to increase their profits to make up for losses in the US Mortgage Markets & Stock markets.
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 will likely start to drop into November and certainly into the new year as competition comes back into the market. If you are in the midst of getting refinancied or purchasing with Invis on the Peninsula, those rates are in place. Our plan for those clients needing to plan a transaction in the current market will likely be to opt for open products like lines of credit which offer us the same rate (Prime) and the flexiblitiy to move you to a better product as they start to reemerge. Call us for a no obligation review at anytime.
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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. |
