Sep 2012 Rate Update

RATES
Once again rates have been left unchanged as predicted.  Generally, fixed rates still outperform variable; however, are not the best option for everyone. As per our last update, if you hold a variable mortgage and you have a deep discount and a long time remaining in your term, don’t do anything. If you have a short amount of time left in your term OR have a small discount or premium, historically low fixed rates may be a good option for you. Rates will go up, this is certain. The timing is not.

THE EVER CHANGING MORTGAGE MARKET
It’s more important now than ever to consult with someone knowlegeable (broker, banker, etc) regarding your mortgage when you’re buying. First, pre-approvals are a bit of a misnomer. They don’t actually exist as one may think and are not underwritten as they were years ago because it’s just not economical for banks/lenders. BUT, they do provide a rate guarantee for typically up to 120 days which is very important. Because the rules and market are in a constant state of flux, we’re seeing deals fall apart that would have previously been good deals because people are not getting the advice they should be.

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