Interest Rates historically low. But heading up?
Optimism, that the European Union is getting closer to agreeing on a solution for Greece, has directed the markets upwards this week. Basically, the EU has increased funding for a program that will allow recapitalization of banks that are exposed the debt of countries that are potentially insolvent. This has provided the global markets with a bit of confidence that the bank failures of 2008 is less likely to happen. The Canadian dollar increased in value with this news and currently sits at just above 98 cents US.
Although this trend could reverse next week, bond yields have been increasing the past two weeks and as a result some lenders are increasing fixed term rates by 0.10% to 0.20% on a variety of terms.
Rates are still ridiculously low, with some CMHC mortgages able to get 3.29% for 5 year terms and other mortgages available at 3.45% for 5 year terms. I have been inputting rate holds for the past few days in anticipation of this increase. Now that variable rates are mostly around Prime less 0.25% and up, the fixed rates are looking very attractive.
If you have any clients that are considering a purchase or refinance, please tell them to contact me to discuss their options. The client has no obligation to do anything if they just have a rate hold but it is an excellent time to do so as we may never see rates this low again.
I have been seeing more interest from US clients lately. Please remember that we can get up to 80% financing for US clients at rates that are very good, such at 3.44% for a 5 year term. Rate holds are also available for US clients.
Compliments of:
Jason McLean BSc, AMP
The Mortgage Centre: Garibaldi Mortgage
direct: 604-905-1415