Mortgage applicants are becoming increasingly adverse to variable rates, at least according to our anecdotal observations.

With the better variable mortgages at or near prime + 0.75%, fixed rates near all-time lows, and the economic picture so uncertain, mortgage shoppers are gravitating more and more towards fixed mortgages.

As it turns out, it’s good timing.  There are some incredible fixed-rate gems out there at the moment.  Some of them aren’t getting much publicity.  Here are a few examples:

5-year fixed

Rate:  3.99%
Rate Hold:  Must close by February 27, 2009
Prepayments:  15% lump sum annually / 15% monthly payment increase
Details:  680 credit score; Ontario only; available through very few mortgage brokers; contact your local broker or us for complete details

3-year or 5-year fixed

Rate:  3.25% (3-year); 3.65% (5-year)
Rate Hold:  45 days (3-year); 60 days (5-year)
Prepayments:  15% lump sum annually / 15% monthly payment increase
Details:  650 credit score required; BC & Ontario only; available through the Sutton Member Program (SMP); only applies to new home purchases through authorized agents; contact your local broker or us for an SMP agent referral

3-year fixed

Rate:  3.75%
Rate Hold:  45 days
Prepayments:  20% lump sum annually / 20% monthly payment increase
Details:  620 credit score required; available nationwide; contact your local broker or us for complete details

1-year fixed

Rate:  3.50%
Rate Hold:  120 days
Prepayments:  15% lump sum annually / 15% monthly payment increase
Details:  600 credit score required; available nationwide; convertible at any time into a 5-year fixed at 1.25% off posted rates; contact your local broker or us for complete details

There are lots of caveats to the above deals.  Talk with a mortgage planner or email us for complete information and to determine suitability.

(Photo by Tim Parkinson)