Variable Rates Increasing

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Variable Rates Increasing

Last week we started to see variable rates increase as some of our lenders started decreasing the discount they are offering on variable rate mortgages. Previous to that we were seeing variable rate mortgages offered at Prime minus .7% or .75% (1.95% – 2.00%).

Several lenders starting decreasing their discounts so that now they are only offering Prime minus .55% – .65% (2.05% – 2.15%). While the prime rate hasn’t changed and probably won’t change for some time, the decrease in the discount means that the rate on any NEW variable rate mortgages won’t be as attractive as it was.

Having said that, there is still time to get the lower discount as we still have some lenders offering Prime – .7% which means a rate of 2.00% for new mortgages. This could change any day now so please contact us as soon as possible if you are considering a new variable rate mortgage.

For those of you that are already in a variable rate mortgage and in the middle of your term there is no need to panic as the Prime rate is not changing. You will still have your same discount and rate.

If you need any help with your situation in determining what kind of rate you should be looking at please give us a call at 604-556-3893 or email us and we will be glad to help you.

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.