Vancouver Mortgage News – Variable Mortgage Rates Coming Down

May 26, 2009

bankrates.gifMore Canadian lenders are expected to reduce their variable mortgage rates

On April 21, 2009, the Bank of Canada (BoC) announced their last rate drop (BoC rate announcement).  This brought down the overnight rate to  its lowest rate at 1/4%. The Bank  of Canada announced to hold the rate until “the end of the second quarter of 2010?.

Major lenders reacted quickly to the base rate cut and announced a reduction in their standard variable mortgage rates. The latest rates reductions from lenders like HSBC and Merix brought their variable rate mortgages down to 2.75% (prime + 0.5%) and 2.65% (prime + 0.4%).

Fixed rate mortgages can be had for as low as 3.05% for 3-years and 3.54% for 5-year term respectively. Home owners who are locked in at 5.0% are seriously considering the cost savings to refinance their mortgages. If you are considering refinancing your mortgage, you need to find out how much it will cost you to break your mortgage contract.

If your cost saving works out to be much more than your penalty cost, you may want to consider refinancing your home. For more information on whether you should refinance your mortgage, kindly contact me (Elsie Tse) at 604-716-3369 or Email Me 

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