FirstLine’s popular Matrix readvanceable mortgage will no longer be available after midnight tonight. FirstLine has taken it, and all of it’s variable-rate mortgages, completely off the table.
The Matrix was the most popular readvanceable mortgage among mortgage planners, and one of the best mortgages in the market overall. It is now the latest casualty of the credit crisis.
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Side Bar: Here is an updated readvanceable mortgage comparison. We plan to add a few more products from lenders like Desjardins and DUCA. In the meantime, if anyone has other suggestions or corrections for this list we’d value your feedback.
Just out of curiousity – does this affect people (like me) who already have a Firstline Matrix? Mine is a 5 yr – ending in a bit less than 4 years from now?
mike
I have purchased a house, closing at the end of the month. I already have a 5 year fixed below 5%. The broker I used mentioned that this rate could get better before the closing. With today’s cut, will this rate get better?
I am wondering if I should lock into a five year fixed…or stick with my veriable mortgage~here is my info…what do you think?
Current Mtg. information: Variable rate 4.00 (Prime 4.75% – .75 discount) bi-weekly payment Prin. Plus Int. & Insurance =$450.04
If you were to convert to a Fixed 5 year term: current 5 year posted rate 7.20% – 1.30% (Discount) = 5.90% – new bi-weekly payment Prin. & Int. & Insurance = $511.80. A difference of 61.76 bi-weekly.
I’m in the same position. Variable -.75.
Why lock in at this point? there’s a good chance that the BoC will make a rate cut October. Why not hold on for another month or so and see how it works out. For a difference of $61.76 by going fixed and the hassle involved to get it done, I would rather wait.
Just read this article…what do you think?
http://www.torontosun.com/money/columnists/linda_leatherdale/2008/10/08/7012201-sun.html
Her profile picture scared me so much that I refused to read the article.
No matter what the experts say or do, or what paper an economist or Bank publishes, you at the end of the day, make the decision about your financial situation. Don’t let the skeptics sway your decision because no matter when you buy, sell of renew someone will always have an opinion. :)
or you can check this out…
http://www.bank-banque-canada.ca/en/press/2008/pr08-21.html
BoC cut rates by 50 basis points this morning, with another cut possible at the next meeting later this month. We’ll see whether these cuts are passed along to those of us holding a discounted variable product, but it’s not the sort of climate in which I’m personally tempted to lock in at a much higher rate.
Mike’s question is a valid one, what happens to existing Matrix mortgage holders? I would guess that the mortgage continues until the end of the term?
From my mortgage manager… :)
The Rates have not gone up and in fact they announced this morning that the Bank of Canada will be cutting their rate by .50% – so we should see this reflected in the prime rate which the variable rate mortgage is based on. That would set the new rate at 4.25% – that means your mortgage payment is now paying more towards principal than interest. So, staying with your current mortgage makes the most financial sense.
I will be curious to see if/when the banks follow and who will be first or if none follow as they have threatened in the past. In this environment I would not assume anything.