Bond rates
have
hit a 2 year high! What does that mean for you? It means that there is more
pressure on fixed rates and most lenders are starting to increase them once
again.
It is important to note that fixed rate mortgages are influenced mainly by Government of Canada bond yields. Variable rate mortgages rely heavily on the Government’s overnight target rate which sets the Bank’s prime rate.
Several months ago, we could easily get 5 year fixed rate mortgages at 2.89%. After these current rate increases, most lenders will be offering around 3.59% for their “discounted” rates. On a $300,000 mortgage, that is a difference of almost $110 a month and almost $10,000 interest over a 5 year term.
Most lenders will offer pre-approvals or rate holds which may be slightly higher than their discounted rates. If you are considering purchasing or refinancing – it is a good idea to lock in to a 120 rate hold as soon as possible.
Please contact me today for current rates or for any mortgage related questions at all.
http://www.christinebuemann.com
It is important to note that fixed rate mortgages are influenced mainly by Government of Canada bond yields. Variable rate mortgages rely heavily on the Government’s overnight target rate which sets the Bank’s prime rate.
Several months ago, we could easily get 5 year fixed rate mortgages at 2.89%. After these current rate increases, most lenders will be offering around 3.59% for their “discounted” rates. On a $300,000 mortgage, that is a difference of almost $110 a month and almost $10,000 interest over a 5 year term.
Most lenders will offer pre-approvals or rate holds which may be slightly higher than their discounted rates. If you are considering purchasing or refinancing – it is a good idea to lock in to a 120 rate hold as soon as possible.
Please contact me today for current rates or for any mortgage related questions at all.
http://www.christinebuemann.com
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