Vancouver investor
Big rate increase announced
March 30, 2010 by Wayne Mah, A.M.P. · 1 Comment
The Royal Bank of Canada led the way today and increased their posted mortgage rates on their 3, 4 and 5 year fixed rate terms. On the 5 year fixed rate term they increased it by a whopping 60 bps, going from 5.25% to 5.85%.
3 and 4 year terms were increased by 20 and 40 bps respectively.
These increases had been anticipated for quite some time now as the yields on the bonds had increased significantly over the past while biting into the profitability of their mortgages.
TD Bank later in the day matched these increases. We can expect the other lenders to follow suit shortly.
Vancouver investor
Great Variable Rate Mortgage Strategy
March 15, 2010 by Wayne Mah, A.M.P. · Leave a Comment
Despite the low fixed rate mortgages available there are still many people asking for variable rate products. Most of the time they ask what the best rate for a variable is. In majority of the cases this would be a variable rate closed mortgage. However, I have been suggesting they take the variable rate OPEN even though it comes with a slightly higher rate. Why? Well, in this video I explain the strategy and the reasoning behind it. This ultimately may get you a better deal and save you money.
UPDATED March 15, 2010: Since the recording of the video on March 3, 2010, variable rate closed mortgages are now as low as Prime less 0.50%.
