May 1, 2012
Well now that Spring has sprung, many London and area residents wonder what the interest rates will do this Summer.
Well,are the signs right in front of us? Whether you are looking for a Fixed rate or a Variable rate mortgage, both of them may be increasing over the Summer months… why not hold a rate today?…. Let me explain.
Fixed rates are affected by the Bonds, as they go up or down, so does the fixed rates…. Example, 5 year bond goes down, expect the 5 Year fixed rates to drop. Today the 5 year ranges from 3.19% to 3.59%
We hit an ALL-TIME low back in August and December 2011,
Variable rates adjust by our Prime rate… They typically go up or down depending how our Feds set the Canadian Prime rate….
Many of us know Bank of Canada just met last Tuesday and announced Prime will stay still at the lending rate of 3.00%. .so to many Mortgage holders have heard variable rate is best. …But what if the bank only offers .20% below Prime? that is a 2.80%…. seems much riskier then the options we had in the previous 5 years…… What do you think ?
Well that just might be the Summer forecast mentioned in this Wall Street Journal, Market Watch .
So, to sum all this up….. if you are thinking mortgage savings in the next 4 months, why not contact me ASAP to secure TODAY’s discounts for up to a 125 days….whether it be a Fixed or a variable.