50/50 Mortgage offers great 5 year mortgage rate

As i have posted many times on this blog, the first question out of most people’s mouths when I first start speaking to them about their financing needs is “what’s the best five year rate you can get me?” In an industry that is driven by competitive pricing of its product, I can understand where that question comes from. As i ahve also mentioned on this site several times….there is more to a mortgage than just a low rate.

Well, in this post I am happy to say I am going to talk about….low rates. In fact I am going to talk about a mortgage rate lower than any other 5 year rates I have seen advertised. I am now offering my clients a 5 year rate of 3.47%.

How can I offer a rate that low? Well, notice I didn’t say it is a 5 year “fixed” rate. This is a unique product that allows you to take advantage of the low rates of a variable mortgage while maintaining some of the security of a fixed mortgage. It is called a 50/50 mortgage. Basically 50% of the funds are locked in at today’s low 5 year fixed rate of 4.29% while the other half is set at prime plus .30 (2.55%). The combined rate gives you an effective rate of 3.50%.

With the Bank of Canada stating they are going to hold interest rates steady until mid 2010 you have plenty of time to take advantage of the low variable rate. Keep in mind that the prime rate would have to rise by more than 2% points before your effective rate would be above what you would have paid if you placed all of your money in a 5 year fixed.

Please give me a call if you would like to discuss the benefits of this mortgage.

Related posts:

1. Is now a good time to go variable??? Variable rate mortgages are at the lowest rates in history...
2. Mortgage Rates Recently some of the lowest mortgage rates have been attached...

Related posts brought to you by Yet Another Related Posts Plugin.