January Mortgage Update

2012 has started out with a bang.  Here are some highlights!

NO CHANGE IN OVERNIGHT/PRIME RATE

The Bank of Canada Rate stayed unchanged yesterday for the 16th straight month in a row.  This is has been the longest stretch on record without a rate change.  In it’s official statement the BOC stated that they do not anticipate the economy to reach its fullest capacity until Q3 of 2013.  Those in variable rate mortgages will see no change in their monthly payments.  Lenders have responded in kind by cutting discounts previously offered on variable rates, but as we have seen over the past week, this is has driven up competition in the fixed market.

RATE WARS

I’ve received numerous emails this week about Bank of Montreal and their 5 year “no frills”  fixed mortgage at 2.99%.  This is certainly an impressive rate, but comes with several catches.  Click HERE for an excellent comparative article on this product.

It didn’t take long for other lenders to step up and compete with 5 year terms matching this rate, and 4 year terms as low as 2.89%. This kind of fierce competition is great for borrowers, we are truly seeing the lowest fixed rates in history.  One thing that is crucial when dealing with rates this heavily discounted is to make sure that borrowers are not giving up important terms in the mortgage that could save them money.  Often times borrowers are better off paying 10 basis points more on the rate and having a full feature 5 year term.  Through all the promotions, gimmicks and rate drops,  having an independent mortgage professional advise you can save money as well as some unwelcome surprises down the road.

MAKE  MONEY ON YOUR HOME THROUGH REBATES

Most people are familiar with First Time Home Buyers rebates, but few realize how many opportunities exist to claim other rebates associated with your home.  In the same way we work with clients to make sure they are saving every penny on interest payments, we also want to make sure the investment of your home is providing opportunity as well.  Click here for a great overview on the available rebates on your home.

Whether you’re a first time home buyer, or are well into a current mortgage, my phone is always on for any questions or inquiries you may have.

BJ

bj@mortgagebrokerteam.ca

604-916-0390