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We deal with over 30 different lenders across Canada.

Are you thinking of locking in a mortgage rate?

With interest rates at record lows, many homeowners with variable rate mortgages are calling us to find out whether they should lock into a fixed rate.

The question is a valid one. After all, with many economists predicting another Bank of Canada rate cut in the coming months, it's tempting to reap the benefits of lower variable rates — particularly if you have a rate that's prime-minus.

That being said, the decision to lock in really depends on how long fixed rates remain low. As soon as they start to inch upwards, savvy variable rate mortgage holders would be wise to lock in. As of right now, we can obtain a fixed five-year mortgage around 3.89% (or less) for individuals who hold a variable mortgage at prime minus, and 4.05% for those at prime plus.

Right now, it makes sense to hold off on locking in, at least for a little while. To prepare yourself for a higher mortgage payment down the road, however, it couldn't hurt to call your lender and have them calculate what your monthly payments would be at a locked-in rate, such as 4.05%.

By increasing your regular payments to reflect this amount, you'll not only be adapting to a higher rate, but you'll be putting down some extra money towards your principle, which is always a good thing!

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At Greenwood Estates and Mortgage Company, Mission, BC, we represent dozens of lenders and loan programs across Canada. With our experience in banking and finance we can help you find the best rates for your needs. Many years working in the banking and finance industry has given us a great network of contacts that we can use to find the best product for you. Mortgages, business loans, refinancing, credit lines and debt consolidation are our business.

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