As you may well have seen, The Bank of Canada has recently said that they do not plan to increase the Bank of Canada Rate until the end of the second quarter of 2010. As such, Prime is expected to remains at 2.25%; great news for those currently borrowing at floating rates. Prior to September 08 variable rate mortgage at 0.90% below prime were available, but in the fall the rates increased to Prime + 1.0%. Variable rate mortgages for 5 years are now priced at a fraction under Prime.
We have seem fixed funding rates increase from quite a number of lenders over the last couple of month, with 5 years fixed rising to between 4.20% and 4.55%. That said, there remains money available, some with restricted terms (quick close and limited repayments options) in the 3.85% to 4.19% range. This presents opportunities for those who may wish to reduce borrowing costs by refinancing higher priced mortgages, or wishing to lock-into these historically low interest rates.
If you, have a mortgage coming up for renewal in the next 4 months, or if you expect to need a new mortgage, I would be pleased to speak with you in person. Alternatively, you could complete and return the attached (click here) application form to me by fax. Furthermore, if you know of anyone who may need to assistance with a mortgage refinancing or require a mortgage, I would appreciate it if you could kindly pass on this message; I would be pleased to hear from them.
Mark Northcote, ACIB