Once the darling of savvy homeowners, the variable-rate mortgage has become a nasty piece of business lately.Rates for these mortgages are vastly more expensive than they used to be, and some lenders are charging a fair bit more than others. It's probably best to avoid variable-rate mortgages altogether for the time being, right?
Not so fast. There's a case to be made for variable-rate mortgages right now, even if homeowners are shunning them.
Before the global financial crisis gummed up bank lending, you could get a variable-rate mortgage at the prime lending rate at major financial institutions minus a discount of up to 0.9 of a point or so. Today, variable-rate mortgages are going for prime plus a full percentage point in many cases.
If you are in the process of purchasing a new home or you mortgage is coming up for a renewal, and you would like to discuss your options, please call or email Greg Barrow at Dominion Lending Centres at 416 807 7123.
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