Interest rate review Oct 7th 2011
This week, mortgage interest rates have continued a trend that we’ve seen developing over the past 4 weeks. Mortgage lenders are effectively enticing mortgage borrowers to take fixed rate mortgages by lowering their fixed rates and increasing the spreads on their variable rate mortgages. This has created a convergence of fixed and variable making fixed rate mortgages more attractive in the current market.
Pick of the week: I’m liking the fixed 4 year rate at 2.99%. Yes it’s 12 month less than the 5 year however the discount to the rate is too good to pass up. I believe it will prove to be a rate you will reminisce about in the future when rates head up to more “normal” levels.
Disclaimer: The circumstances of individuals are unique and mortgages are not one size fits all. This is just my opinion.
1 Year Fixed – 2.50%
3 Year Fixed – 2.89%
4 Year Fixed – 2.99%
5 Year Fixed – 3.39%
5 Year Fixed (high ratio only) – 3.29%
5 Year Variable P-.25 (2.75%)
50/50 Hybrid 3.17% (effective rate)
Prime Rate is currently 3.00%
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