Monday, June 22, 2009

Mississauga and GTA Mortgage rate update

Good morning,

I hope you are doing well and enjoying our fabulous weather and looking forward to our upcoming summer season.

As you might be aware that in the past two weeks, fixed rates have increased dramatically.

Right now, 3-year fixed rate is 3.65%, 4-year fixed rate is 4.05%, 5-year fixed rate is 4.49%.

If you are thinking of a mortgage move and you did not lock into low fixed rates, don't worry. I know mortgage people who have solutions for you .

1. 5-year variable at P+0.25% (currently 2.5%). with ongoing sagging economy, the Bank of Canada will keep the Prime rate low for at least 1 year.
Although fixed rates have gone up a lot, we can expect they come back down in near future, because recession doesn't support high interest rates.

The benefit of Variable rate is that you can convert it into fixed rate any time with no cost. So you would have another chance to lock into lower fixed rate later while taking advantage of the current low variable rate.

2. If you don't want to commit to long term mortgage, you can opt for 1 year fixed rate at 2.75%.

With big short-term savings, the above two are good alternatives to long term fixed mortgage.

Please don't hesitate to contact me if you need any assistance and I will put you in touch with mortgage people who will take care of your needs!.

Mark

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