One of the main considerations when getting a mortgage if whether to lock in your rate or choose a variable rate mortgage. I always educate my clients on the pros and cons of each mortgage type and then help them make a decision that will be best for their financial situation and risk profile. I have mentioned before that historically a client you chooses a variable rate will be better off in the long run.

Positive economic data from both sides of the border has forced government bond yields up. This will most definitely halt our falling mortgage rates, but will we begin to see an increase?

According to research performed by professor Moshe Milevsky, choosing a variable rate over a fixed rate mortgage paid off approximately 96% of the time over the last 58 years. Is a variable rate right for you?

I am now offering my clients 3.99% for 5 year fixed mortgage preapprovals.

I can now offer my clients the very low 5 year mortgage rate of 3.50% using a 50/50 mortgage product. It allows you to take advantage of today’s low variable rates while still keeping some of the security of a 5 year fixed mortgage.

Variable rate mortgages are at the lowest rates in history at the moment and those of you that took a variable rate over a year ago and received a discount to prime are currently paying a little over 1% interest on your mortgage. However, those of you that are looking at getting a variable rate mortgage today are looking at paying a premium on top of the prime rate. Why not consider taking a 1 year fixed rate mortgage until variable rates once again have a discount?

Recently some of the lowest mortgage rates have been attached to mortgages with non-standard terms. In this post I will explain a bit about the Canadian Mortgage Backed Security market and how it contributes to the offering of the unique mortgages.

As bond yields have been decreasing many Canadians have been asking why haven’t mortgage rates dropped accordingly. There are actually a couple of reasons for this.

Combine the security of a fixed rate mortgage with the current low interest rates of a variable mortgage and you get the new 50/50 mortgage. With an effective rate of only 3.38% you can save money on your mortgage while only 50% of the total amount is subject to interest rate risk (compared to 100% if the mortgage was totally variable).

It was bound to happen….fixed mortgage rates will be on the rise over the next day or so. Increasing bond yields are reducing the profits of the banks and resulting in the need to increase mortgage rates. The days of 3.54% for a fixed mortgage are numbered and we will probably see rates rise above 4%. Get pre-approved today!