Term
|
Our Rates
|
1 Year Fixed
|
*2.89%
|
2 Year Fixed
|
2.59%
|
3 Year Fixed
|
2.79%
|
4 Year Fixed
|
2.87%
|
5 Year Fixed
|
2.94%
|
7 Year Fixed
|
4.09%
|
10 Year Fixed
|
4.49%
|
Variable Rate
|
2.35%
|
Prime Rate
|
3.00%
|
Benchmark Rate
|
4.79%
|
*Denotes Change in Rate
Rates are subject to change without notice.
Rates are subject to change without notice.
I do have access to the very best interest rates available. There is a lot
more to a mortgage than just an interest rate though. Over the years lenders
have found ways to effectively compete for market share by providing the lowest
rates. They sometimes do this by offering what is called a "no-frills"
mortgage. Not only that, you may in fact be getting a variable rate when you
thought what you were getting was a fixed rate mortgage. There are also quick
close rates available if you have the ability to close early.
A "no-frills" mortgage is basically a mortgage which is
restrictive in some way or another. For instance in order to get a lower rate
with some lenders you may be giving up some of your pre-payment privileges. You
may also be giving up the opportunity to refinance your house which means the
only way to pay out the mortgage is by selling your house.
Then there are Variable rate mortgages. This means that
your mortgage is subject to change based on your lenders prime rate. Prime rate
is ultimately determined by the Bank of Canada's overnight lending rate. What
you need to know is that your mortgage rate is subject to change. If the prime
rate then so does the rate on your mortgage and if prime rate goes down then so
does the rate on your mortgage. So if it seems like the rate you are getting
might be too low, you might be getting a variable rate.
A good number of lenders now offer what is called Quick Close
Rates. Basically a quick close rate applies with some lenders if you
can close the new mortgage within 30 days, with some others you have as long as
45 days to close. These rates often include a discount for closing quickly. An
example would be if the going rate on a 5 year is 3.09%, a quick close might
include a discount dropping the rate to 2.99%.
Some of the questions you need to ask when determining the interest rate
is;
What are my pre-privileges?
- What are my payout penalties?
- Is my mortgage portable?
- Is my mortgage assumable?
- Can I refinance with a penalty or do I have to sell to get out of my mortgage?
- How soon is my mortgage going to close? Can I close it sooner to get a quick close rate?
If you are dealing with anybody that cannot come up with the answers to
these questions then I would strongly recommend you discontinue using their
services right away and find somebody who can(like me).
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