Smart Variable Rate Strategy

0 Flares Twitter 0 Facebook 0 Google+ 0 LinkedIn 0 Filament.io 0 Flares ×

From www.canadianmortgagetrends.ca:

1-year-or-variable-mortgage“The odds are fair that prime rate is heading 25 basis points higher in one of the next two Bank of Canada meetings. (See this Reuters’ poll)

After that increase, many analysts foresee a pause of at least six months before rates resume higher. Rates are then expected to climb modestly until prime rate gets closer to its 4.65% ten-year average.

This scenario has some people thinking that a variable rate is just what the doctor ordered. If you happen to be in that boat, there’s an even better strategy to consider.

If you do a little digging you’ll find various brokers offering 1-year fixed rates near 2.25%.  These offers are a fantastic alternative to variables, for a few simple reasons:”

Click here for full article.


Iain

0 Flares Twitter 0 Facebook 0 Google+ 0 LinkedIn 0 Filament.io 0 Flares ×