Interest rates 20 years ago today!
You may be surprised by this, but back in April 1990, Canada’s prime lending rate charged by financial institutions was a whopping 14.75%! The average prime lending rate for the past 25 years is approx. 7.0% and has been under 5.0% for the past two years. We are all hearing that the Federal Government will be increasing rates by July of this year which is one reason why the chartered banks have already raised their fixed rates this past week. Choosing between a variable rate mortgage and a fixed rate mortgage is a big decision for each of us but, ultimately, whichever way you decide, base your decision on your comfort level (ie – locking in now to avoid higher rates in the near future providing you with peace of mind, or enjoying the benefits of a lower interest rate with a variable rate product (currently as low as 1.85%) knowing that these low rates won’t be here for long). If you are still undecided which way to go, please give me a call to discuss your own situation with me further. I do not mind taking time to help you with your decision, and by the way, there is no charge for my advice! You can reach me, Ed Kolisnyk, at 250-762-2070. Let my 30 plus years of mortgage lending go to work for you!
