Major Rate Changes
When markets suffer major losses, the Bank of Canada stands at attention. Last week the market lost $100 billion in value which means it’s now off about 20% from its high in June. This beating the market took, along with a weakening economy and tightening credit conditions, is having an impact on our current mortgage rates.
Until recently, many consumers were attracted to the huge discounts offered on variable rate mortgages, but variable rate funding cost have soared and many banks and lenders have eliminated discounts offered. With everything that is going on, it’s now costing lenders more to get the money for funding, and this transfer’s over as an extra cost to consumers. A large number of lenders have raised their variable products to prime, and many banks have also boosted fixed mortgage rates as well. With all that being said, variable mortgage rates are currently still at least 1% lower than the fixed rates so if you are looking for a mortgage, you may not want to wait much longer before getting your pre-approval done.
For more information on mortgages, please contact:
The Mortgage Centre Express Mortgage Services