Tag Archives: Variable Rate Mortgage

Mark Carney Suggests Rate Hikes Looming

Bank of Canada Governor Mark Carney said again that the bank may have to raise interest rates to keep inflation on target.  This would mean in increase to variable rate mortgages.  He said it was not necessary to be more explicit about timing of a possible move but said that Canada was “well into an expansion”.  The timing and degree of any increase “will be weighed carefully against domestic and … Read More

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Mortgage Rate vs. Mortgage Service

When shopping for a mortgage, the first thing borrowers looks for (and sometimes the only thing) is the best mortgage rate.  While mortgage rate is undeniably the single most important factor in choosing a mortgage, other factors could overwhelmingly make a low rate mortgage a bad choice.  Some of you may be thinking, “What other factors?” Other factors will rank in priority according to an individual’s circumstances, but they’ll affect … Read More

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What a 1% Mortgage Rate Hike Means to You

We’ve all been enjoying record low interest rates.  The low mortgage rates have enabled us to buy bigger homes or just pay less interest each month.  If you’re one of the many Canadians who’ve taken on a bigger mortgage then you may be concerned about rising rates.  And rise they will.  Current mortgage rates tied to the prime lending rate have been strategically held low to help stimulate the economy.  … Read More

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The Hidden Pitfall in March’s Major Empoyment Gains

Employment numbers increased dramatically with March cranking out 82,300 jobs, surpassing economists’ expectations 8 fold.  This surge of new jobs pushed down the unemployment rate to 7.2%, its lowest rate since the recession began over 3 years ago.  This is obviously good news for the economy and is another clear signpost to naysayers that Canada is not only out of its recession, but bouncing back better than expected. Any significant … Read More

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Variable Mortgage Rate Outlook – April 2012

The forecast for variable mortgage rates remains flat, just as it was last month, and the month before that.  Variable mortgage rates float with a lender’s prime rate of interest, which is tied directly to the overnight rate set by the Bank of Canada.  In a speech today in Waterloo, Mark Carney, the Governor of the Bank of Canada said “All indicators point to inflation expectations remaining well anchored”.  With … Read More

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3 Reasons to Get a Fixed Rate Mortgage

The 2 most popular mortgage terms are 5 year fixed and 5 year variable.  Only a short year ago 60% of borrowers were choosing the variable option, but today’s landscape favours fixed mortgage rates.  Fixed mortgage rates and variable mortgage rates fluctuate based on the lenders cost of funds.  What many don’t realize is that the cost of funds for variable mortgage rates and fixed mortgage rates can move in … Read More

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Home Equity Line of Credit vs. Variable Rate Mortgage

Many homeowners prefer the flexibility of a Home Equity Line of Credit (HELOC) over a closed term mortgage.  While there are merits to a HELOC it isn’t always the best option.  HELOC’s tend to be more expensive than their closed variable rate mortgage (VRM) counterpart.  The great thing about mortgages is that it’s all about the math.  If you know your needs then you can calculate the numbers to determine … Read More

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