Rate is higher but still historically low

Rate is higher but still historically low

Though the Bank of Canada raised its rate to 0.75 per cent on Tuesday, consumers may still have time to take advantage of lower waits since some banks wait days, even weeks, before raising their prime rates.

"This rate hike will stop people for a moment, to reflect, 'Oh my goodness, what am I going to do now?,'" said Laura Parsons, a mortgage expert at the Bank of Montreal, to the Canadian Press. "For some first-time homebuyers it might seem like that first home is a little further away, but it's not. It's a buyers' market and the rates are still really good and the problem is we've forgotten what a bad rate looks like."

Though those with variable rate mortgages may not switch to fixed rates just yet, added Parsons. Variable rates are still historically low and will continue to save more money for a home owner.

3 Comments
  • Besnik 2010-07-23 6:40:03 AM
    Not sure why you guys are still asking BMO for the mortgage market and so on..Those people DO NOT LIKE to get any business from the brokers channel. Everyone knows one accept you at CMP........ :(
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  • Mookie 2010-07-23 5:23:52 PM
    exactly.... why ask bmo, it doesn't make any sense. Banks like RBC and BMO don't support mortgage brokers. And I have often seen negative quotes in the newspaper from these institutions regarding mortgage brokers. This magazine exists because of the mortgage broker channel, so why doesn't CMP give mb's a little respect here.

    There are so many experienced mortgage brokers/agents that you could have contacted for there opinion and you would have gotten something better than "Oh my goodness, what am i going to do now?"
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  • Joseph 2010-07-24 1:25:13 AM
    Excellent comments - this issue that always comes to mind whenever I read quotes from BMO/RBC. I've just never voiced it. No, they don't support the broker channel, if anything, they try to clamp down on it...

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