Mortgage Rate Drop

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Mortgage Rate Drop

This week the Bank of Canada announced another ¼% drop to its lending rate. This means the banks are able to borrow money at cheaper rates and in turn pass that on to you as the consumer. However the mortgage rate drop means different things depending on the type of mortgage you are in.

For those of you in a variable rate mortgage, most lenders dropped their prime lending rate from 2.85% to 2.70%. This means going forward you will be saving an extra .15% in interest. Most lenders will adjust your payment so you may see a small reduction starting with your next payment in August.

If you are in a fixed rate mortgage or looking for a new fixed rate mortgage the recent drop had no effect on rates. Fixed rates are generally not tied to variable rates and so both sets of rates will move independently of each other.

We would also like to remind that as your Mortgage Advisor we are here to serve you throughout the term and life of your mortgage and not just in obtaining your initial mortgage. If you currently have a mortgage or are looking for a new one we can help you with the following:

  • Change your payment date or frequency
  • Increase an existing mortgage
  • Make additional payments to your mortgage
  • Renew your mortgage
  • Add on another mortgage or line of credit to a property
  • Borrow unsecured loans or lines of credit
  • Purchase another property
  • Obtain life or disability insurance
  • Obtain term insurance
  • Any type of mortgage including purchases, refinances, construction, lines of credit, private mortgages, etc
  • Anything else you may need in regards to financing!

In almost ALL cases we are able to obtain the same or BETTER RATES than if you go directly to your lender yourself. This is the power of dealing with us as your mortgage advisor.

Regardless of what you need we are here to help you. Please CONTACT US RATHER THAN CONTACTING YOUR LENDER. We will help you or direct you to the right person who can take care of your needs.

For more information on our mortgage products please visit our website at www.ymscanada.ca.

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About the Author:

Alex Kotai
Alex Kotai has worked in the mortgage lending business for over 10 years. His career started at HSBC Bank Canada where he spent most of his time in senior management roles which involved training and managing the sales staff at his branch. After leaving HSBC, Alex decided to open his own mortgage brokerage firm, Your Mortgage Source. Through his company, Alex has access to many lenders across the country with a very expansive list of products.