Friday, October 02, 2009

The Tide has Turned AGAIN for variable rate mortgages

The Tide has turned - again. As it "normally" and eventually does. All things seem to go in cycles, if you are my age or older, 51+ you will agree with me.... Read more about cycles here

Variable rate mortgages have been at Prime Rate plus about .5% to .75% now for about 2 years or so. Just this week, some lenders have changed their price variance on variable rate mortgages and we are now back to Prime MINUS mortgages. This is great news for people like me who have mortgages that are prime minus and may be renewing in the next few months.

I've written about this in the past

http://www.mississauga4sale.com/blog/2008/04/variable-rate-versus-fixed-rate.html

and

http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

I have seen mortgage companies offer offer clients a 3 yr term at Prime less .10% and I have 4 & 5 yr terms at Prime.

Many predict the pricing variance may drop further but most don't think it will go as low as last year's Prime less .60%.

Current "BEST" Oct 1st 2009*

Prime...........2.25%

Fixed rates:
1 yr...............2.45%
2 yr...............2.90%
3 yr...............3.34%
4 yr...............3.74%
5 yr...............3.84%
7 yr...............5.30%
10 yr.............5.40%

Variable rates:
3 yr................Prime less .10%
4 yr................Prime
5 yr................Prime
*rates subject to change without notice

Let me know if you have any questions...enjoy the weekend!
Mark

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