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Variable Rate Mortgages Currently on Their way Out

08 Nov

After years of showing clients how much they can save in interest by taking advantage of a variable rate mortgage today things have shifted in the other direction.  With variable rate mortgages changing from the prime minus to prime or prime plus really makes you question whether or not it is beneficial to take a variable mortgage as compared to a fixed rate mortgage.  The only thing that would still hold weight is what it would cost a client to break their mortgage.  By spending time with our clients and having a 5 year mortgage map in mind will help to determine which option is better suited for them and their life plan over the next couple years. This may change should the Bank of Canada change it’s prime lending rate or variable’s head back to the good old days or prime minus .25 all the way to prime minus .75%.  We as consumers could only hope variables head back to prime minus again but until things change fixed term mortgages are saving our clients the most amount of mortgage interest.  If your currently looking to buy or refinance ensure you factor which mortgage product is best suited to you and your situation because not all mortgages are created equal

 
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Posted by on November 8, 2011 in Uncategorized

 

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