The rates now are so low thatit may be a good time to have a look at your mortgage to see if there are benefits to refinancing.
The Bank of Canada reduced its key interest rate by a quarter point today to its lowest level ever. In its announcement the Bank also stated that it expects to hold this policy rate at its current level until the end of the second quarter of 2010, conditional on the outlook for inflation.
While rates for variable rate mortgages are typically impacted by Bank of Canada policy rate changes, what's interesting is that rates for popular five-year fixed rate mortgages have been declining significantly in recent months. The reason behind this drop is an abundant supply of money being put into circulation, as well as guarantees of government agencies to purchase mortgage investments.
A comparison of fixed rates today versus six months ago shows a noticeable improvement in purchasing power.
Six months ago, a competitive rate on a five-year fixed mortgage was 5.75 per cent. At this rate, the monthly payment on a $250,000 mortgage with a 25-year amortization was $1,563. With the five-year rate of 3.95 per cent available today, the monthly payment falls to $1,308, which adds up to a savings of $15,300 in payments over the five year term.
An Invis mortgage professional can explain current trends in mortgage rates, and can advise you on the a mortgage option that suits your needs.
To check out your refinancing option call:
ALLEN CHENG - Senior Mortgage Consultant
INVIS GROUP
5604-313-7000
email: allencheng@invis.ca
If you are looking to Buy or to Sell real estate in Vancouver area, give me a call. My consultations are FREE. The benefits to You, may be worth a lot of money.
Call Jeff Stark at 604-506-8481 or email me at jeff@jeffreystark.net
