Thursday, July 14, 2011
Variable Rate Still The Right Course?
There is a lot of chatter about Interest rates going up and variable no longer the best opt in for the client.First if you have no risk tolerance or your at your limit, then a long term fixed rate is your choice at these level of interest rates. For everyone else, we need to review some facts so that you are able to make an informed choice. Fact is the last ten years the Prime rate has averaged 4.45%.The US is in no rush to raise rates and is looking doing even more stimulus for their economy. We have trouble in 4 countries in Europe, that could cause some real problems. The Canadian dollar is currently at $1.04 US. Lenders are currently offering variable rate mortgages at Prime-.80-.90%. These are just the facts as of today. The other fact is looking backwards the highest prime in Canada went to form 2000-2010 is 6.25% and that is when there was no uncertainties in any one's economy world wide. You need to look at these facts and your own budget. An Accredited Mortgage Professional can help you through this process.