Saturday, May 20, 2006

Mortgage Interest rates have been on the rise for about a year


Mortgage Interest rates have been on the rise for about a year now. After sitting at or near all time record lows for most of the past 4 years, mortgage interest rates have now climbed about 2.5% over the past year. You can see the trend of mortgage interest rates graphed here.

The question "Should I lock in for the long term or go short term" is a common question. You will find the answer here.

The Bank of Canada has increased many times over the past year. The lowest rate in 5 years was in August of 2004 when the bank prime rate was 2.25 The Average over the past 5 years, from 06/2001 - 04/2006 was 3% and the High was in June of 2001 when it was 4.75 Banks and lenders typically charge a minimum of 1% above the bank rate for Bank prime for their best customers. Thus, with the Bank of Canada prime being 4.25 today, a Bank rate prime would be at least 5.25%

This is an excellent link to view and compare Today's Low Canada and Ontario Current Mortgage Interest rates from major lenders for discounted, variable, fixed and prime rates in Canada and a mortgage calculator

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