Rates Update
I do not have the updates from everyone, but from the lenders that have traditionally given me the best deals here is the scoop today. Remember I think this is going up again before the week is out.
I believe the 1 year deal I mentioned last week is still on the table. I do not have an update from the lender saying it has changed so if you think this will blow over in a year and the rates will settle (I am not sure they will) then this is a great option. A 1 year product out there that will let you or your client cash in on the great one year rate of 2.75%, and if and when they want to switch to a 5 year it is easy to do and they get a guaranteed interest rate discount of 125 bps, when they renew or early renew to a 5-year fixed rate product, should rates begin to rise. Call me for more information.
Regular Rates/ Quick close rates (funding in 30 days or less)
1 Year -2.80% - same as last week
1 Year - Special 2.75% with great lock in options - call to learn more
2 Year - 2.95% - Same - Quick close 2.85% - No change
3 Year - 3.49% - New- Quick close - 3.39%
4 Year - 4.09% - Quick close - 3.99% - 40bps increase
5 Year - 3.99% - 4.49% A couple of lenders have not raised their rates yet, but I think this is a matter of hours rather than days. It seems to be about a 30bps increase at the 5 year level, so if you thought you would see if you could save 10bps when it was 3.54%, the time has passed, think again.
5 year quick close - 4.39%
I think the longer rates are still on the table, for now but it looks like it might go higher.
7 Year - 5.25% regular - 5.15% - Quick Close the next lowest is 5.50%
10 year - 5.25% This will also probably go up soon. Other lenders are at 5.50% or more. If your a long term planner of these things then get on it soon. It is still below last year's 5 year rate.
Variable Prime + 40bps - 2.75% - this is holding for a 5 year term this shows that indeed variable pricing is changing and although the economists are not convinced we will ever get back to prime minus 85bps like last year it does show that we are at least heading in the right direction.
Variable 5 year rate is Prime + 80bps OPEN (e.g. Line of credit type of product)
Variable products are all over the map and can be priced as high a Prime + 1.5%, or more for the B lenders.
A new product for the fence sitter or the partial risk taker is the 50/50 mortgage, you can have 50% variable and 50% fixed with the option to lock in the variable whenever you like, at the rate available at the time you decided to change.
I do understand the real estate market and will do my best to help you, or your clients, by listening, offering suggestions and alternatives, listening to how you feel about those and then identifying new ones, until the right deal is on the table. I want to make sure that the mortgage fits in to the overall financial plan.
Remember that all the rates I quote, except where it says no frills, are with lenders that give clients flexibility in terms of pre-payment, lump sum payments and not unreasonable penalties if they have to break the mortgage for some reason. Not all deals are created equal even if the rates look better. A mortgage is more than a rate.
Let me help save time by making sure you, or your clients are ready. Speak to me early so we can make sure everything is set to get the best deal. I work to identify the right product and then getting a great rate.
Andrea Meynell
416.486.1113 | 
