To all you people out there with Variable Rate Mortgages..
Posted on Sep 7, 2012 in Mortgage Market Updates and News
It's been 2 nice long years since the Bank of Canada last increased its overnight lending rate, thus increasing the bank's prime lending rate. While the date that people expect prime to increase keeps being pushed back and back and back, yesterday it was pushed back again. While the next schedule time to look at prime rate is October 23rd, experts are now predicting no increases to prime until mid to late 2013, this means for all you people out there with variable rate mortgages, enjoy! Predictions are your payments won't be going anywhere for a while.
That being said, with fixed rates at all time lows, it's never a bad idea to look at your options for locking in or refinancing. If prime rate does start to increase, likely fixed rates will already be higher. Right now you can obtain a 5 year fixed rate at 2.99% in some cases (subject to borrower and property qualification), which is less than what many people are paying on their variable rate mortgages. If you're in this situation, definitely call me today to discuss.
For those of you out there with home equity lines of credit, you may be paying prime plus .5% or even prime plus 1%. That means you're on a variable rate that is higher than what you could be paying on a fixed. Consider locking in within your line of credit if your lender allows this which many do, or call me to discuss refinancing.
Sharie Marie Francoeur (Minions) - 250.730.0239 firstname.lastname@example.org