[Source - CEP News]
Ottawa - Canadians are increasingly opting for variable rate mortgages when it comes time to buy or refinance a home, according to survey results released by the Canadian Association of Accredited Mortgage Professionals (CAAMP).
The market share of variable and adjustable rate mortgages has almost doubled, to 40% this fall from 21% of those who negotiated their mortgages a year or more ago, CAAMP reports. The association says the switch likely indicates that consumers believe interest rates are more likely to fall than to rise.
There was evidence of a declining mortgage rate trend beginning on Wednesday afternoon as at least two major Canadian financial institutions announced rate reductions.
The lower rates are welcome news, said CAAMP CEO Jim Murphy, although he said the cost of borrowing is only one of three key factors affecting the housing market. Affordability and job security are equally important, he said. "You can't pay a mortgage if you don't have a job.
"Variable rate mortgages are more popular among middle aged and older buyers than among Canadians aged 18-34, the CAAMP study showed. Only 19% of buyers 34 and under opted for variable rate loans compared with 30% of buyers aged 35-54 and 27% of those aged 55 and older.
Read Full Article Here: http://www.economicnews.ca/cepnews/wire/article/single/173905/
Showing posts with label Variable vs. Fixed. Show all posts
Showing posts with label Variable vs. Fixed. Show all posts
Thursday, November 27, 2008
Wednesday, October 22, 2008
Big 6 Banks drop prime rate following Bank of Canada
Variable rate mortgage holders will be happy as the major banks reduced prime rate to 4.00% after the Bank of Canada reduced the key lending rate by another 1/4 point yesteraday.
Other lender's who have reduced their prime rates to 4.00% include: Laurentian Bank, Street Capital, Caisse Centrale Desjardins, Dominion Lending White Label, ATB Financial, Merix Financial, and Scotia Express.
If you are interested in purchasing a home soon, or your current mortgage is coming up for renewal and you would like to speak to a professional regarding fixed vs. variable rates, please contact Greg Barrow at gbarrow@dominionlending.ca. You can also try calling 416 807 7123. I would be happy to answer any of your questions.
Other lender's who have reduced their prime rates to 4.00% include: Laurentian Bank, Street Capital, Caisse Centrale Desjardins, Dominion Lending White Label, ATB Financial, Merix Financial, and Scotia Express.
If you are interested in purchasing a home soon, or your current mortgage is coming up for renewal and you would like to speak to a professional regarding fixed vs. variable rates, please contact Greg Barrow at gbarrow@dominionlending.ca. You can also try calling 416 807 7123. I would be happy to answer any of your questions.
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