Variable rate mortgages are improving in Vancouver BC
Variable rate mortgages are improving in Vancouver BC.
Yesterday we saw a couple of the lenders reduce their premium on the 5 year, closed term, variable rate mortgages. As you may be aware over the past few months we have seen the discount on variable rate mortgages erode to the point where they went to a premium over the bank prime rate. The rate got as high as prime + 1.5% at some institutions, however, yesterday we saw a couple of lenders come down to prime + 0.6% which is a nice sign. Bank prime rate is currently at 4.0% and on December 9th the Bank of Canada will meet to decide what to do with the target for the overnight lending rate. Some feel they may lower it slightly which should then be mirrored in the bank prime rate. This would translate into a further reduction in the rate currently being applied to those on or getting a variable rate mortgage for the time being at least. However, we will have to wait and see what happens on the 9th to confirm this. Stay tuned.
For current mortgage rates on the most common terms and mortgage products you can see them here on my website. For specific questions or inquiries not indicated on my site please contact me directly at maury@maurylum.com or 604-603-2520.
Maury
