Mortgage rates have eased slightly for both the fixed rates & the variable rate mortgages.
The 5 year fixed rate has finally come back down below 4% to 3.99%. The variable has also moved down to prime (2.25%) plus .15% on a 3 year term & prime plus .20% on a 5 year term. The variable seems to be the way to go, as the economists are now predicting that the Bank of Canada rate will not move until 2011. Even though, the recession is over, they are saying that the recovery will be slow and gradual which will not stimulate inflation.
The economists are also predicting that it will be well beyond 3 years before the bank prime hits 4%.
Bryan Guertin of Mortgage Intelligence in Oakvile recommends that clients take advantage of the variable mortgage, but increase their payments to where it would be on a fixed rate of 4%. This way they will make a huge dent in their first 3 years. Bryan has also put together a recent bulletin from CMHC showing their market research and an explanation of how the market rebounded so quickly. For a copy of this report, please send me an email and I would be happy to share it with you.
For more information on buying or selling real estate in Burlington, Hamilton, Oakville, or Toronto Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit the Sean Kavanagh Real Estate Resource Centre at www.seansells.ca, or at www.seankavanagh.ca I'd be happy to answer any questions to accommodate all of your real estate needs. Follow me on TWITTER or FACEBOOK! You can also contact me at 905-220-9198 or at www.realestatechat.ca as I am now a moderator on the Ontario Real Estate chat forum as well as the Burlington, Ontario sub-forum.
I look forward to hearing from you!
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