This article appeared in the Globe and Mail issue of October 31, 2011 by Rob Carrick.
"Fixed-rate mortgage is your best bet; banks have snuffed out variable-rate discounts, while prime rate has dipped," he further says.
"Variable-rate mortgages are so over.
Go fixed rate if you're arranging or renewing a mortgage, and think hard about the four-year term. If you take in all the recent developments in the mortgage market, this is the most logical strategy.
Variable rate mortgages are being sold at the prime rate in many cases right now, which is 3 percent. The traditional discount off prime? Snuffed out by the banks. They've decided they aren't making enough money from discounted variable-rate mortgages, so goodbye discount for the most part. If you shop around, maybe you'll get 0.2 of a point off prime.
Now for the fixed alternative. Global economic uncertainty and sluggish growth mean you'll pay in the area of 3 percent for a four-year term." The preceding is a quote from the article.
Very important information to know if you are arranging a new mortgage or renewing one. The complete article can be read by clicking on Real Estate News- Recent Developments on the right column- 2 pages.
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