Bank of Canada Drops their benchmark lending.75%.
Surrey, BC - Dec. 9, 2008 - The Bank of Canada surprised many by dropping their benchmark lending rate by .75% to 1.50%. TD Canada Trust has announced cuts of only .50% in their Prime lending rate dropping it to 3.50% from 4.00%. Whether other lenders will follow TD's lead or not remains to be seen.
Bond yields are at historic lows as well, though lenders have been slow to lower their fixed rates due to the much higher cost of borrowing than in the past. Current discounted 5 year fixed rates now hover in the 5.00% range.
If you are currently in a variable rate mortgage, we recommend staying there if possible as today's current variable rate mortgage products do not have discounts in Prime, however, we have started to see more competition there, with some lenders now offering Prime +.60% rather than Prime +1.00% as many offer. This puts your rate at 4.10% unless the Banks lower their prime the additional .25% that they should, then it stands at 3.85%.
As always, having a Mortgage Strategy in place is always the best plan!
Call us for a no obligation review at anytime.
|
Mortgage Life Insurance...worth it?
All of us are trained to say no to insurance and extended warranties at the car lot when buying a car, but what about Life insurance? Many people feel they have enough coverage at work and leave it at that, though in reality if something horrible did happen, they would be hard pressed to survive on that coverage.
We don't believe in hard selling anything, but we do strongly encourage you to review what coverage you have and look at whether more is required. The product offered through Invis is excellent for many people as a cheap option, or if you prefer we can refer you to Insurance experts to have a proper review done.
Please think about it.
|
