Everyone seems to be talking about how interest rates are rising – expect a few more rate increases – though good rates and good mortgage plans are still possible, you just need a good broker to arrange it for you. Enter Pinsky Mortgages, a great mortgage team with the energy and knowledge needed to get you the best mortgage possible.
Here is Eitan’s latest update on what’s happening in the mortgage world:
|5 Yr Variable||2.60%||2.70%||2.95%|
|5 Yr Fixed||3.19%||3.34%||3.59%|
|2 Yr Fixed||3.24%||3.39%||3.44%|
For the 5-year fixed products, I want to let you all know that the above are special rates. Many banks have increased their fixed rates to around 4%… I’ve never seen such a difference in rates from one lender to another in my career.
Now more than ever, going to a mortgage broker, and not straight to their bank, will provide Buyers with more choice and better options.
The reason for the rate differences is that lenders are “buying” business. Some lenders are willing to take lower income (or lose money in many cases) on their mortgage products so that they can capture a client’s banking and investments. This is especially the case for the credit unions, who are required to hold a larger cash reserve vs the banks for the loans they lend out; see Coast Capital’s 3.29% and 3.34% fixed rates requiring clients to become members and have automatic investment payments to a Coast Capital bank account. The more cash a lender has, the more loans they can provide. Right now, Coast Capital and Scotia are aggressively seeking new customers. For over the last year, it was HSBC who was aggressive, but for a different reason – they had an influx of cheap cash from Credit Suisse, which allowed them to increase the numbers of their personal banking clientele.
Expect another rate increase on October 24th, 2018, so talk to us today about your mortgage options so you know what to plan for.