Prime rate drops .25% to 2.25%
Surrey, BC - Apr. 21, 2009 - The Bank of Canada reduced their key rate .25% with the Banks following along with a .25% drop in Prime to 2.25%. The Bank of Canada went on to say they expect to keep their key rate at this level until June of 2010 at least. 5 year discounted fixed rates are now in the 3.8% range with some lenders offering "Quick Close" specials down into the 3.69% range.
Link to National Post article: Click Here
If you are currently in a variable rate mortgage, we recommend staying there if possible. Today's current variable rate mortgage products do not have discounts in Prime, rather they have a small premium over Prime with some at Prime +.75% or Prime +1.00% (which now = 3.00% - 3.25%). With falling fixed rates now is not the time to lock in your variable rate, we see at least 12 months of low rates or more before there will be any upward pressure on rates. If you are in a fixed rate mortgage we need to review your situation. The longer you wait to have a review, the higher your penalty could be.
As always, having a Mortgage Strategy in place is always the best plan!
Call us for a no obligation review at anytime.
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Monte's Minute
Monte believes in being passionate about life, and in particular, playing fetch. He is also a Beagle and has been with us since 2001. He loves to play and will catch balls all day if he had someone to throw it for him. We got him an automatic ball thrower to see if he would use it...he didn't like it. In his off time Monte likes to sniff, eat and sleep. Monte's motto is "work hard, play harder"
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