We have had 3 AAA lenders drop their variable rate mortgages.
One is a 3 year term at prime minus 0.30%, that's 1.95%!!
the other 2 are offering a 5 year term at prime minus 0.20% or 2.05%!!
Both lenders have great prepayment options of 20-25%
Will this lead to more "variable rate drops"? I believe it will, simply because it makes good business sense. They gain market share with the "sale" price with the intention of moving you into the higher rate fixed products once the rates start to move up which of course we know they will, just a question of time!
Current interest rates for Thursday, January 14th, 2010
Fixed Rate
1 year 2.35%
3 year 3.25%
5 year 3.89%
5 year Quick Close 3.74%
Variable Rate
3 year Special 1.95% prime minus 0.30%
5 year 2.05% prime minus 0.20%
http://www.peterlmckinnon.com/
peter_mckinnon@centum.ca
Peter McKinnon
cell 604-506-6789
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