CBC News reported that Winnipeg-based financial investment firm Investors Group will be offering a three year term with a variable rate 101 basis points below the IG's current prime rate of three percent. Many mortgage brokers think we'll be seeing more of these offerings by other players.
Although the offer comes with a restriction (you can't break the mortgage for any fee during the 36 month term unless you sell your home), there's plenty of enticements such as doubling up monthly payments or pay a 15 percent lump sum at the end of each year.
In practical terms you could be saving $249 a month when comparing a standard 25 year $500,000 mortgage at a 5-year rate of 2.99% (which would cost $2,364 vs, IG's $2115).
So, when is a good time to buy? For the savvy buyer, it's a great time to move into your first home, your dream, your investment home or downsize and invest the difference to supplement your retirement.
Either way, give me a call or send me an email. Let's talk real estate.