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Mortgage Update October 5, 2009

Blog by Karen Ashby | October 5th, 2009

Great news!!! We are finally seeing variable rate mortgages priced below prime. We have not seen any mortgage even close to prime for the past 12 months. In September 2008 we had rates as low as prime -.60% which quickly changed to prime and then to prime + 1% by the end of the first week in October.

We hope that this downward trend in the variable rate market will continue into spring 2010. We do not feel that the Bank of Canada will increase the overnight rate quickly. They will have to closely monitoring the Canadian dollar before making any decisions to increase the prime rate. If the Canadian dollar hits par as it is forecasted to do this could slow down the economy and therefore an increase in the Bank of Canada rate will be a double whamy.

Today our best quick close 5 yr fixed rate is 3.69% which is not bad either considering the best 5 yr fixed rate a year ago was 5.39%. Other rates:

1 yr               2.55%
2 yr               2.70%
3 yr               3.25%
4 yr               3.54%
5 yr               3.69% quick close
7 yr               5.10%
10 yr             5.20%

Variable rate prime - .1%


For more information Contact: 

Paula Siemens -AMP


902-777 w. Broadway Ave.

Vancouver, BC  V5Z 4J7