5 Year Fixed Rate Mortgage Below 5.0%!
5 Year Fixed Rate Mortgage Below 5.0%!
Fixed mortgage rates in Vancouver, BC have been edging down and a 5 year fixed rate can now be obtained below 5.0%. These are very good rates and first time buyers are aware them and if they are not, they should be.
One can still get a variable rate mortgage today for less than a comparable fixed rate, however, it is variable, and it is hard to say for just how long the variable will be priced below today’s fixed rate. Do despite the appeal of how a variable looks today it would be hard not to seriously consider a fixed rate mortgage at this time.
Some banks are also offering promotional fixed rates for those on “legacy” variable rate mortgages if they lock in today. By “legacy” I am referring to the variable mortgages that were priced at a discount to Prime (e.g. “prime – 0.6%). Banks are encouraging customers to lock in their rate as these variable mortgages have become a serious expense on their books. The decision to lock in a variable mortgage that is priced at a discount could be a more difficult decision than the one of deciding whether or not to take a variable mortgage today as the pricing comparison is different. Factors to consider would include:
- Current variable mortgage rate (prime + or – X%)
- Rate(s) offered if you were to lock in
- Current situation
- Future plans
If you would like to discuss this further I would be happy to chat with you and help you in your decision. You can email me at Maury@MauryLum.com or my phone number is (604) 603-2520.
Best regards,
Maury
