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Mortgage Broker News | 11 May 2010, 12:00 AM Agree 0
With people banking on the main interest rate going up in June, it seems like a good time to for homeowners to lock in their fixed-rate mortgages.
  • Liam | 13 May 2010, 02:14 AM Agree 0
    Maybe I'm missing something, but considering the direction of rates, wouldn't 6.25 have surpassed the conventional, non-discounted mortgage rate of 5.25 available in May of last year?
  • Marc | 13 May 2010, 02:29 AM Agree 0
    What is all the panic to lock mortgages into fixed rates? Sure interest rates will start rising, they have no where else to go, but I have not heard anyone saying that these rate hikes will be aggresive and fast. Being in a variable of 1.70% today is way better than being locked into a 5 year fixed of 4.4%. That's a difference of 2.7%!!! It will take 10 rate increases or so for the variable to just reach the same level. The question is how many years will it take for rates to increase 10 times?
  • Don Bayer | 13 May 2010, 02:55 AM Agree 0
    I agree with Marc. Individuals should attain access to a broad range of information prior to paying such a high premium for security. One could increase the prime rate 15 or 20 times over a five year period and still have a lower balance at maturity. If your having trouble sleeping at night,buy a blanket and not a Bank's most profitable term.
  • Pramod Chopra | 13 May 2010, 03:27 AM Agree 0
    I agree with above posters and I always advise my clients to go for variable rate mortgage but fix the payments as if they have taken a 5 year fixed rate and the difference in payment would accrue towards principal and could possibly save thousands of dollars in interest over the term of the mortgage and help them pay down their mortgage much faster.
  • Max J. Cafissi | 13 May 2010, 04:32 AM Agree 0
    Whoever wrote this article knows little or nothing about Mortgages. People are "locking in" their VARIABLE RATE Mortgages not their FIXED RATE Mortgages. If they have a Fixed Rate already, they are LOCKED IN. make sure you know the terminology before you write an Article.
  • James C Tworek | 13 May 2010, 05:17 AM Agree 0
    To agree with the above posters, as mortgage professionals we should do the number crunching for clients and show them the pros and cons of the two rate scenarios... Albeit with the new qualification criteria, going variable and having to qualify at 6.25% erodes 'maximum affordability' somewhat, contrasting the payments and short-term savings value of variable versus the higher initial cost of fixed rates. Everyone's needs and risk thresholds are different and foremost need to be respected; the education and number-crunching process should always be an integral part of any client interaction, educational process and needs assessment.
  • Interested in Professional Responses | 13 May 2010, 05:58 AM Agree 0
    Mortgage Broker; CENTUM Home Quest Mortgage Centre Inc. Max J. Cafissi | 13/05/2010 commented on - "About 12 percent of mortgage holders with fixed-rate mortgages "locked in," or switched from variable rate mortgages, in the past year, , according to a report this month by Will Dunning, chief economist at the CAAMP , and another 10 percent had already switched from variable more than a year ago."
    The way I read the article was that the writer was trying to say that 12% of CURRENT fixed rate mortgage holders that WERE on variable rate mortgage in the last year locked in - maybe not worded with a easy reading format but hardly worthy of the tone of your response - I thought the other comments were interesting
  • Barry Chisholm | 13 May 2010, 04:46 PM Agree 0
    As a mortgage professional, I agree that those currently in a variable should hold fast. With the Canadian dollar almost at par with the US, and Canadian manufacturers losing business due to a drop in US orders (it's not as much of a deal for US buyers when the dollar is at par) the ministry of finance has to delicately balance the interest rates. If the prime rate rises too quickly, this will attract even more foreign investment, pushing our dollar even higher and hurting Canadian businesses(who contribute to politicians and affect voters)even more. So, I see the prime climbing a lot more slowly than it declined and those sitting on variable rates will come out ahead for at least a couple more years.
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