Saturday, December 06, 2008

Mortgage Interest Rate Drops again

Last week was a week filled with rate drops from many key lenders and on top of that, we are anticipating another drop of the prime rate when the Bank of Canada makes their next announcement on December 9th.

It appears that one of the best rate product out there now is the 4 year fixed at 4.95%! It has been awhile since we have seen a 4 year rate quite this low. The variable has also dropped to 4.60% (prime +0.6%).

In addition to the lower rates, you are still able to finance 100% of the purchase price and there are two methods to do this based upon the following criteria:
1. Homebuyers can purchase a home at 95% with a 5% cash back which can be applied to their downpayment. This is actually not a new product and has been around for some time (interest rate would be 6.95%).

2. Homebuyers can purchase a home at 95% and borrow the 5% down payment for a total of 100% borrowed funds. This particular product is relatively new. If you are able to do this, this is the product I would recommend as they can get best rates with this product.

Todays lowest rates:
1 year fixed 4.35%
2 year fixed 5.20%
3 year fixed 5.15%
4 year fixed 4.95%
5 year fixed 5.39%
5 year variable 4.60%
See current rates:

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