As we round the corner into the new fiscal year for banks (the new fiscal quarter and year started October 1st), we have seen lenders shuffle lending policies and bump rates up slightly… nothing to be majorly worries about, just more a case of them re-organizing things for the new year.  In typical fashion, mortgage lenders tend to be very quick to take money off the table when they can and are generally quite reluctant to cut rates.  In the past month, we’ve seen fixed rates rise only slightly (about .20%) into the mid-3% range.  Where we’ve seen quite a bit of movement has been in the variable rate world where most lenders are only offering slight discounts to their variable rate mortgages.  Last month, borrowers could have benefitted from P-0.75% while this month we’re more like P-0.20% for the best-case scenario.  Still not too shabby compared to the P+1.5% of the days circa 2005/2006…

If you’d like to see a comparison between Canadian mortgage rates over the past 25 years click on the link here: RateTemplate_Both_MCC_September_2011

Having been in this industry for more than a decade, there seems to be a general seasonal shift between ‘summer’ rates (usually a bit more aggressive to capture the larger market that chooses to move when weather is nice and the kids aren’t in school) and ‘winter’ rates (Canadians tend to ‘hibernate’ through the winter and if they have the choice they don’t want to slip into a snow drift as they move furniture). Having said this, as we have all heard ad nauseum over the past few months from just about every media source, rates are historically low and are still spurring purchase, refinance and renovation activity across Canada.  What is more is that if you take a peek back into the mortgage rates of 2006-2007, Canadians were paying in the low 5%-range to the low 6%-range.  With all of these mortgages coming up for renewal in the coming 6-12 months and today’s market rates being so low, many borrowers will be getting a bit of a ‘bonus’ when it comes to monthly cash flows as they renew previously-high fixed terms into current rates that are 2-2.5% lower than before.

If you are interested in learning more about how today’s low fixed and variable rates could help save you money whether you are renewing your existing term, looking at refinancing debt into your mortgage, renovate your home or looking to improve your rental properties’ cash flows, please contact us and we will be happy to work though your options with you to ensure you receive the very best fixed or variable mortgage for your needs.

To your financial success,

James C. Tworek and The Trimor team!

www.TrimorMoney.com  |   www.MortgageShowDown.ca | www.SuHipoteca.ca

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