Mortgage Interest Rate Review Oct 20 2011

October 20, 2011

At risk of sounding like a broken record, this week variable rate mortgages have continued with their upwards trend towards prime. This is a trend that has developed over the past 30 days and has caused the 5 year variable rate to rise 65 basis points inside of a month. We also saw a slight increase of +.10% to fixed rate mortgages. This time its not because Government of Canada bond yields have increased. Lenders are citing that uncertainty in the bond market is forcing wider than normal margins until stability returns.
Pick of the week: The fixed 4 year rate mortgage at 3.09% remains an attractive option in face of all the other rates available in the market.
Disclaimer: The circumstances of individuals are unique and mortgages are not one size fits all. Always consult a professional.
1 Year Fixed – 3.09%
3 Year Fixed – 2.99%
4 Year Fixed – 3.09%
5 Year Fixed – 3.49%
5 Year Fixed (high ratio only) – 3.29%
5 Year Variable P-.52 (2.48%) Offered through a Credit Union
5 Year Variable Prime (3.00%)

50/50 Hybrid 3.17% (effective rate)
Prime Rate is currently 3.00%
 

Profile

Christopher Molder

Mortgage Broker

Christopher is a mortgage broker based in Toronto, Canada. And a son of a broker too. He’s a second generation mortgage broker. Following in his father’s steps he joined the family mortgage business straight out of university.