Mortgage rates keep falling in Canada.
This trend is expected to continue for the rest of the year 2008. Consumers taking out new mortgages or refinancing are well advised to take a variable mortgage rate product that is well discounted (for example, Prime rate -1%) and with a long term option (5years available in the market place today).
Friday, March 21, 2008
Thursday, March 20, 2008
Mortgage rates keep falling in canada
At March 20 2008
As predicted by the experts, mortgage rates keep falling in Canada. There is now consensus by most economists that rates will continue to fall, and settle down after the U.S elections in the fall of 2008, or early in 2009.
As of today, the prime rate in Canada is now 5.25%, and this is expected to fall again next week.
Of course, those taking on new mortgages or refinancing are well advised to go with long-term variable rate, negotiating for an attractive rate discount like Prime-1% (now 4.25% in Canada), especially given the mortgage market climate and other macro factors today. This is definitely not the time to lock in to 'fixed rate' mortgages for most people, given availability and flexibility in the primary mortgage market.
Caution: do not be tempted by 'teaser rates' offered by some. Always read the small print and beware of escalation of mortgages interest rate and costs with this feature - the culprit in the subprime mortgage market meltdown in the U.S. (less so for Canada.
As predicted by the experts, mortgage rates keep falling in Canada. There is now consensus by most economists that rates will continue to fall, and settle down after the U.S elections in the fall of 2008, or early in 2009.
As of today, the prime rate in Canada is now 5.25%, and this is expected to fall again next week.
Of course, those taking on new mortgages or refinancing are well advised to go with long-term variable rate, negotiating for an attractive rate discount like Prime-1% (now 4.25% in Canada), especially given the mortgage market climate and other macro factors today. This is definitely not the time to lock in to 'fixed rate' mortgages for most people, given availability and flexibility in the primary mortgage market.
Caution: do not be tempted by 'teaser rates' offered by some. Always read the small print and beware of escalation of mortgages interest rate and costs with this feature - the culprit in the subprime mortgage market meltdown in the U.S. (less so for Canada.
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