Monday, October 6, 2008
Mortgages In A State of Change?
Yes, at this time we are in a very different mortgage market in Canada then we were six months ago. The current and recent downturn in the financial markets have changed the discounting that the banks are doing on all mortgage products. We were getting discounts on variable rate mortgages at -.90% below prime to now Prime. The fixed rates are also on the higher side as the banks are getting a 2% bonus on what it costs them to loan the money out at. For the Canadian consumer this means we will need to make sure more then ever that they have the right mortgage products to ride out this period of instability.