Bank of canada raises rates again… still no need to panic! -Kitchener Homes for Sale.
The Bank of Canada cranked up its trendsetting overnight rate for the third time in four months on Wednesday and the impact will be felt by a wide range of borrowers. But home buyers? Not so much.
True, the central bank’s increase of one-quarter of a percentage point has already been applied by the major banks to their prime lending rate which now sits at 3%. That in turn means variable-rate mortgages, plus lines of credit, are now a quarter-point more expensive.
But there are two trends that offset higher carrying costs for variable-rate mortgages. One is that fixed-rate mortgages, notably in the popular five-year term, have been coming down in recent weeks and are now as low as 3.59 per cent. That’s a fabulous rate, by the way.
The other trend is a return to previous levels of discounting in variable-rate mortgages. If you shop around you can find them as low as .70 off prime rate. Do your homework and shop around. My best advice is talk to a great mortgage broker and have them shop around for the best rate out there. Ever percentage point you can save will mean huge savings over the years to come.
If you have any questions as always send me a quick email email@example.com
Thanks and have a super day!
This entry was posted on September 9, 2010 by kevinbakerrealestate. It was filed under Buyers, Sellers and was tagged with Bank of Canada, first time home buyer, home buying, kevin baker, Kitchener waterloo, kwrealestatelife, Mortgage News, Mortgage Rates, Prime rate, real estate, real estate investing, Remax.