Thursday, January 14, 2010
Canadian Mortgage Holders Cautious?
There was an article released today from CAAMP survey that said people are taking more fixed rate mortgages then variable rate mortgages over the course of the first eight months of last year. I believe this was entirely due to pricing on the variable rate mortgages which went from prime-.90 to prime plus 1.00% over the course of a very short time in late 200/2009. Since the credit markets have improved variable rate pricing has as well and we should start seeing a trend back to variable rate mortgaes. Currently the difference between variable and fixed rate is 1.85% higher on the fixed. That is a lot of extra interest being paid to the banks vs your pocket!