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It's that time of year - same as last, when the banks start to urge customers through the media, to lock-in! Doesn't that make you a little suspicious?
Exactly one year ago, they were yelling it. Telling us rates were going up! The sky is falling down! Remarkably, neither happened.
Prime is still close to an all time low of 3.00%. Many of you have variable mortgages at 2.25% - 3.00% right now. Compared to an astonishing 3.19% for 5 years or 2.99% for 4 yrs these rates are something to consider.
However, if you go to convert from your variable mortgage, you will find out that these are not the rates you will get, as those are 'rate specials'. Incentives for new customers to come over and try their bank.
It is different if you are up for renewal or looking to purchase: you can have these special rates, but if you are in the middle of a variable rate mortgage contract - it will be closer to 3.49% for 5 years to lock in....this is not quite as attractive compared to your 2.25% floating rate for example. If this describes you, then, stay where you are in your floating mortgage and enjoy vast savings of interest, and an opportunity to set your payments higher and put extra down on the principal with every payment. You will be much further ahead of the game than paying all that extra interest to the bank.
Anyone who is up for renewal or is looking to buy or refinance..yes, lets talk about fixed vs. variable rate mortgages...right now you really cant make a bad choice - they're all good!
It's a great year to buy, renew, refinance and consolidate! Your referals are happily accepted and greatly appreciated - call me to discuss the option that is best for you.
~ Romany 250 862-1794 Toll Free 1-800-884-4101 |
