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 details3-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 referral3-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 details1-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)
This is where fixed rates should be, based on cost of funds. Good job, finding the best current offerings. Wish I could access these rates in MB.
Wish i could access them in QC too, the lowest i could find is 4.34 fixed for 5 years .. 3.99 looks good though :(
Anyone know when the next BoC meeting is schduled for ?
March 4th i believe
Thank you MortgageNovice.
It’s March 3 actually…
http://www.bankofcanada.ca/en/monetary/schedule.html
Thanks Jim, I was on thier site and I couldn’t find the schedule, thank you for pointing it out !
I was offered 4.39 to lock in for four years from my variable….through CIBC Not that I am doing it, was just checking into of course…….Guess I will call again next month! LOL