Fixed Mortgage Rates Drop Again

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Fixed Mortgage Rates Drop Again

January has once again seen fixed mortgage rates drop to record lows. There is a lot of buzz in the marketplace about the rate drops and also confusion about the different products out there.

One lender has advertised a 5 year fixed rate at 2.99%; however, this comes with certain conditions that most of the public is not aware of. There are 3 major restrictions to this product. 1) It is only available on a 25 year amortization which means increased payments. 2) You cannot refinance with another lender during the 5 year term if you need to add funds onto the mortgage. 3) They have reduced the prepayment on the mortgage to only 10% per year. There are other restrictions as well to this product however these are the main ones.

We feel a better option is to go with a 4 year at the same rate of 2.99%. There are several lenders with this rate and none of the above restrictions. The mortgage amortization can be up to 30 or 35 years depending on lender, you can refinance if you need to and there are full prepayment privileges available.

Rates seem to be changing almost daily now. Check our website at for the latest rates or call us for the most recent updates. Now may be the time to check out your options with these great low rates.

Important Reminder Regarding Your Mortgage Renewal

If your mortgage is up for renewal and you are being contacted by your lender to early renew before the maturity date please call or email us before signing the renewal. We are able to give you a quick recap of rates in the market to make sure you aren’t signing for a rate/term that isn’t beneficial for you. Often times your lender will tell you that you only have a very limited time to sign the renewal to pressure you into taking the rate they want. Get in touch with us for a quick 2nd opinion!

If you require any further information regarding this article or any other mortgage matters please contact our office at 604‐556‐3893. Also, as a reminder to anyone looking for a mortgage, we offer 4 month pre-approvals at no cost to you. This means that you can get a rate hold for up to 4 months to protect yourself in case rates rise.

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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.