Mortgage Rate Change

As mentioned in last weeks article, the long awaited moment has arrived. We are proud to be offering a Variable Rate Mortgage at the Rate of Prime + 0%! The product carries a 4 year term and is convertible to a fixed rate just like our other offerings, it is designed for AAA clients so the minimum beacon score from Equifax is 650. From my interaction with RLP clients I have noticed that most clients scores are higher than this anyways. The only detractor is that the deal must close within 45 days. As this is a special rate offer, it is currently only valid until September 30th.

Variable at PRIME + 0.00% = 2.25%
5 year fixed @ 3.89%
3 year fixed @ 3.49%

On Thursday the Bank of Canada did not change the prime rate during their meeting. We continue to operate at the lowest prime since its inception. 2.25%! The Bank did signal that our economy is recovering at a great pace. What we should revisit is the fact that the bank is currently hand cuffed on increasing prime. I say this because any increase in prime that is not matched by the United States will put further upwards pressure on our currency. Making the recovery from this relatively short recession that much more difficult. That is why the Canadian government has been using stimulus spending to spur on our economy. I am not saying that prime will not eventually rise, it inevitabely will. But what I am saying is that Prime would need to rise by over 1.75% to match, not exceed today’s five year fixed rate offer. The savings generated in the time period before the rates match would by far exceed any excess interest costs, if the variable rate rises above four percent. In today’s market variable rate mortgages have been saving people thousands of dollars. Lets add your clients to the portfolio of smart consumers who believe in the strategy that we are offering.

As always thank you to all our great Royal LePage agents who continue to help us grow! I hope everyone had a relaxing yet fruitful summer, and I look forward to working with even more of you in the coming months. Call 1 866 629 6423 to SAVE!!!

Jivan Sanghera, BA A.M.P.
Mortgage Broker
License# M08007884
The Mortgage Group @ Royal Lepage Niagara
33 Maywood Avenue
St Catharines, ON, L2R 1C5
#7-4520 Ontario Street,
Beamsville, ON, L0R 1B0

Toll Free 1 866 629 6423
Local 905 334 9111
Toll Free Fax 1 877 614 2487

“Showing You the Way to Mortgage Freedom”

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