Thursday 3 April 2014

Fixed mortgage rates rising!

Yesterday, the bond yields hit their highest levels since January 14th where rates were higher (fixed mortgage rates are determined by bond yields).   On January 14, 2014, 5 year fixed rates were in the 3.39% - 3.49% range.     Compare that with today's lowest 5 year fixed of 2.84%.   This puts SERIOUS upward pressure on fixed mortgage rates.   If you haven't locked in a mortgage rate yet, now is a good time to do so without delay.

In addition to the 5 year fixed at 2.84% (for CMHC insured mortgages only - 2.89% for conventional), there is also a 3 year fixed at 2.49%, which is a great product and is also a great alternative to variable for those unsure.   The lowest variable rate is prime -0.65% (2.35%), so the fixed is only 0.14% higher.   A single increase, and you are behind on rate.  At the end of three years, THEN take a look at variable again to see if there are better options at that time.  It's a solid plan.

If you have a mortgage closing coming up, or are just starting to shop for a home, get a mortgage rate locked up as soon as you can to ensure you get the lowest rate possible.

Please visit www.easy123mortgage.ca for more information!

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