Today, Mark Carney, the governor of Bank of Canada, announced that they have raised the overnight rate by 0.25%. This was definitely anticipated by most economists as the feds did indicate they would do so once the economy rebounded from the recession. I guess the bigger question is what they will do on July 20th, which is the next meeting date to discuss whether or not another rate hike is necessary.
Although the Prime lending rate is now slightly higher at 2.50%, we can still get you a great variable rate mortgage at a rate of Prime minus 0.50%. For those who like the benefit of a fixed rate option and yet considering the lower variable rate, then why not consider both. That’s right, you can have, for example, 50% at the best 5 year fixed rate and 50% variable or whatever percentage you want (60/40 or 70/30, etc.). You are in full control of what you would like with your mortgage terms. This is available up to 95% for purchases and 90% for refinances. Once you are under 80% loan to value, this mortgage can be re-advanceable meaning for every dollar you pay down your mortgage below 80% of the value of your mortgage security, you have a dollar that you can re-borrow without requalifying and redoing your mortgage at the lawyer’s office again. This is a great product and highly recommended by us for your consideration. If you want to know more about this product then please give me a call locally (Kelowna area) at 250-762-2070 or for outside the area you can reach me toll free at 1-888-877-3535.
Have a great day!