Friday, October 10, 2008

Mortgage rates update, you may be shocked!

Happy Thanksgiving!

It's been a challenge keeping up with the changing mortgage interest rates (& everything financial!). The most significant changes have been with variable interest rate mortgages. Within a matter of days, the pricing changed from Prime less .60% to Prime plus 1%.

Is it more difficult to arrange a mortgage today? Not really, it's true the lenders are more diligent in their review of documentation; however, if you have good credit, capacity to repay & documentation to confirm down payment & source of income - business hasn't changed.

The lenders are asking more questions about borderline applications & these may be more difficult to finance through some prime lenders.

Also, effective next week, updated guidelines for high ratio (insured mortgages) will be announced. I'll keep you posted on these changes.

Enjoy the long weekend,

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