Rates are back in the spotlight and the media can't get enough of it.
Mortgage Brokers like myself have had access to 2.84-2.99% 5 year fixed rates for weeks now, but since BMO announced their 2.99% 5 year fixed rate clients have been contacting me about "rates coming down". Also, it is important to note that just because a 5 year fixed rate comes down, does not mean that variable rates will necessarily drop at the same time.
Even with these low fixed rates being available I am still recommending a variable rate currently because there are some low low variable rates putting you currently at a rate as low as 2.35%. You can keep your payment the same as if you locked into a fixed rate and you will in turn pay down your mortgage faster! More money in your pocket and less money in interest! Then lock into a fixed rate when/if the Bank of Canada increases the rate and prime rate is on the rise.
There are sub 3% rates out there right now, but remember not all mortgages are created equally. Some important questions you need to ask your Mortgage Broker or Bank:
Yes, a restrictive mortgage at 2.99% may be a good fit for a few people out there, but the difference in monthly payments between 2.99% and 3.09% can be just $12/mth whereas the 2.99% may end up costing the client thousands in the long run if they come across one of these restrictions.
Also many of my clients just see a low rate and want to lock in, but it is important to think about the bigger picture. Here are some questions you need to ask yourself:
Lots of things to think about when comparing mortgages!
This is where a Mortgage Broker differs from a big bank. I am here to help you understand the mortgage terms, policies, and penalties as well as discuss the bigger picture with you and your family to ensure we make a plan for the future.
Please feel free to call me to discuss your mortgage needs. 778.388.4240 or firstname.lastname@example.org