ResMor Trust just announced prime rate on its 4-year variable mortgage. This is now the lowest, widely-available variable rate in the marketplace.
It’s been about 10 months since lenders last advertised prime rate on a variable.
Thanks to the credit crisis last fall, variable rates soared to prime + 1.50% or more—after being as low as prime – 1% in 2008.
Since the spring, however, rates have slowly drifted back towards prime as risk premiums in the money market have subsided.
ResMor’s offer is good until Sept. 30, and the mortgage must close within 45 days of approval.
Contact any ResMor-approved mortgage planner for complete details.
Actually, Alterna’s been lending money at prime for a while. Check out their “Recession Proof” offer.
Alterna’s site.
Hi Ken,
Thanks for the note. The caveat with Alterna is that their Recession-Proof Mortgage is not “widely available.” Alterna lends mainly in the GTA, Ottawa, and Kingston while ResMor lends across the country. Also, I believe Alterna’s mortgage is part fixed and part variable–as opposed to a full variable term. (Correct me if I’m wrong).
Cheers,
Rob
Do you know who is offering a HELOC below Prime + 1%?
-Laurentian
-Firstline (depending on size & broker)
-National Bank
they’ll all be back at prime in the near future.
Look at 3 month Libor rates now – they are at the lowest they’ve EVER been. The global banking system is awash in liquidity. Its just a matter of time before they pass on some of that to the consumer in the form of prime rates or even prime MINUS sometime in 2010 I’d expect.
Alterna can lend throughout the country, via Alterna Bank. Yes, Alterna Savings is Ontario only, but Bank is country-wide.
Hi Ken,
Thanks for the follow-up. Wasn’t aware that Alterna Bank offered that particular product countrywide. Seems they offer it in most provinces, although in BC they lend through Global Pacific.
In any case, this isn’t a true variable-rate product because Alterna requires you to lock in 60% at a 5-year fixed rate of ~4.44%! Only the remainder can be at prime.
Cheers,
Rob