Wonderful thing about this business is that every day brings some new twists and ideas about real estate.
I was holding an open house last weekend and had some decent traffic. So, what are the buyers looking for? Good deals,beter prices, and as one of them said, zero interest??. What di he mean? Well he said that he thinks the interest rates will go to zero. When I questioned him as ti what he meant, he really wasn't sure what he was talking about. Who knows what news he was listening to. There is talk and speculation that Bank of Canada will reduce the rates at the next meeting on December the 8th. It could be 1/4 to 1/2 off todays prime rate of 4%. Bank of Canada rate is 2.25% and the prime is usually 1.75 above that.
So what was my visitor thinking about. Zero rate for what? He wasn't sure. Even if the Bank of Canada overnight rate got to 0%, the bank prime would be 1.75% great deal for borrowing money and mortgages, but it sure wouldn't be much good for savings and other investments. I gues he wasn't thinking along those lines.
I think the rates are pretty good. Anything you can get under 6%for a 5 year mortgage has always been a good deal. There is no more discounting from the bank prime rate. most lenders will ad up to 1% to the prime as a variable mortgage rates and most of them will not give you a closed rate. Still, at 5% variable, and with the rates on the way down by most accounts, it is a pretty good deal.
There are other deals out there. A good mortgage broker will find you the best options available, but make sure you are dealing with an Accredited Mortgage Professional.
