Don’t let rates fool you!

5 YR FIXED FRENZY!

BMO recently came out with the “first” sub 3% 5 yr fixed rate. The problem with this is BMO’s product is restricted, but they fail to promote the fine print. There are other industry incumbents who advertise similar products, but the important thing here is to be aware of what you’re getting into. There is a general lack of transparency in our industry. What do we recommend? Generally speaking, variable is still the way to go. Upward pressure on rates remains low and the flexibility inherent in the variable product is greater. This, of course, depends on your goals and financial situation. On the other hand, fixed rates are very low and there seems to be downward pressure, which is a combination of bond yield movement and the perennial spring market rate wars. On the fixed side of the equation, we recommend the 4 yr at this point. Regardless of variable or fixed, we offer full feature mortgages with full pre-payments, standard discharge penalties, portability options, maximum amortizations, etc.



PREMIUMS RISE MAY 1 FOR < 20% DOWNPAYMENT

Effective May1, 2014 CMHC premiums will increase by, on average, 15%. Deals committed prior to this will be grandfathered forward. 



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