Thursday, January 22, 2009

Mortgage Rate inside information!

After the Bank of Canada's rate announcement Tuesday morning, the banks were unanimous in matching the rate drop.

The Prime lending rate, to consumers, has dropped to 3.00%.

Throughout the day yesterday, rate notices trickled in and below you'll find a recap of the best rates available this morning.....I'll keep you posted on any new changes.

There is aggressive pricing by some lenders - note the 1 yr rate of 3.99%.

Many clients anticipate further rate drops and are leaning towards variable rate mortgages.


Did you know....
  • Lenders will allow variable rate mortgage clients to switch into a fixed rate mortgage during the term BUT the majority of lenders don't commit to offering their lowest rates when the borrower decides to convert to a fixed rate. Out of the many lenders I know about, only a few state this promise in writing.
  • Mortgage interest is usually compounded on a semi-annual basis; however, several lenders use monthly compounding on their variable rate mortgage.....the interest cost is greater with monthly compounding. You need to know the difference in order to make an informed decision so make sure you ask!.

These are only 2 examples of the benefits clients get from working with an experienced mortgage specialists. I can put you in touch with a mortgage person who unlike a bank representative, is allowed to use many lenders which allows them to place you with the best mortgage solution. I sound like a mortgage broker, don't ?I! The bank rep won't point out the weaknesses in their product - it's the only one they have to sell. You will have choices and make sure you have all the information.

I'm always happy to hear from you, let me know if you have any questions or how I can help you!

All the Best!

Mark


MORTGAGE RATES
Best rates as of January 21, 2009

Prime Rate.........3.00%
Variable Rate......Prime plus .80%
1 yr fixed...........3.99%
3 yr fixed...........4.64%
4 yr fixed...........4.69%
5 yr fixed...........4.59% (over $500,000; otherwise 4.69%)
10 yr fixed..........6.45%

...other terms available; data subject to change without notice

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Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


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RE/MAX Realty Specialists Inc.

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( BUS 905-828-3434
mark@mississauga4sale.com
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