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Sunday, June 7, 2009

Vancouver Real Estate - Prime Lending Rate Unchanged

by Cory Raven on Sun, Jun, 7, 2009 10:51 AM

Categories:Mortgage,Mortgage Rates,Real Deal

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5 year - Fixed Rates

Fixed rate 5 year term mortgages have increased about 1/2% in the past week, this is due to yield changes in the bond market. The lender's best 5 year fixed rate mortgage today The prime lending rate was announced today by the Bank of Canada to stay the same.

If you have a fixed mortgage above 5% and you qualify we may be able to switch your mortgage to a new lender and save you money over and above your penalty, Call us for a free 15 minute mortgage analysis and we will run the numbers for you and let you know if we can save you money.

Adjustable Rate Mortgages

The lender's prime rate is still 2.25%, some of our clients still have prime minus 1% and have a 1.25% mortgage rate. The best Adjustable rate mortgage today is prime + .4% = 2.65% See BOC announcement

http://www.bankofcanada.ca/en/fixed-dates/2009/rate_040609.html

Should we lock in our ARM?

Having an ARM Adjustable Rate Mortgage when rates are rising can be stressful. There is no crystal ball to look at to decide if you should lock in or not. I believe there are 2 factors to think about:

1) Comfort level, If the stress of floating is too much then forget about the math and guessing where rates are going and lock in to a 5 year fixed rate mortgage, the rates are still very low and you can sleep at night and not worry anymore. Just call us and we will help you lock in your mortgage.

2) What do you THINK is going to happen to rates: Based on the report from the BOC (see link above) they seem to think they will keep the prime rate low until 2010, Quote from BOC "

Bank of Canada maintains overnight rate target at 1/4 per cent and reiterates conditional commitment to hold current policy rate until the end of the second quarter of 2010

If you believe the BOC then you can benefit from low rates for another year and THEN lock in to a fixed rate.

If you have any questions, we are here to help, cheers

Lance Cook

President

Lance's Bio

CBM Canada's Best Mortgage Corp.
#101-3960 Quadra Street
Victoria, B.C. V8X 4A3 Canada

Phone: 250-391-7678 (Ext.105)

Direct line: (250) 391-7833
Fax: 250-391-7679
Toll-Free Phone: 1-877-593-7738 (Ext.105)
Toll-Free Fax: 1-877-651-7739
Email: lance@lancecook.com
Web: www.lancecook.com

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Please excuse the mess while I upgrade my website to provide you with even more timely and topical information on our market and the process of buying and selling. In the meantime, you can access my blog by clicking here