Mortgage Rates Going Up?

On Tuesday morning, I woke up to a mailbox filled with articles about major banks raising their rates. Headlines in the Financial Post read “TD bank, cibc, laurentian and RBC announce mortgage rate increases” followed by various predictions and analysis. These banks raised their 5 year fixed rates to about 5.69%. This is quite high considering the overnight rate is 1%.

These are however the rates banks charge to the public and general customers. If you are using a broker or mortgage professional you can still get loans from these banks at rates as low as 4.04%. It amazes me that banks will rather offer a strange, random customer better rates then a loyal client. Get someone working for you.

With a mortgage agent you can still access rates of 3.89% on a 5 year fixed. 2.2% on a variable and 3.3% on a 3 year fixed rate on approved credit. Even with the mortgage rule changes that went into effect on March 18, 2011 buyers have options. 35 year amortization periods are still available. Many lenders do not use CMHC to insure their loans, thus making lending easier and less restrictive. This means that you do not have to rush to ever beat any dead line. Make real estate decisions with logic, not fear and emotion.


About wojciechpianka

After a few years of studying English and History at the University of Toronto, I decided to transfer to Ryerson University and pursue a Bachelor of Commerce degree. While studying, I worked various jobs where I acquired many skills. Starting as a teller at Scotiabank, I moved on to being a manager of a restaurant, admin staff at a medical clinic, a sales agent for INGDirect and a manager at One King West Hotel. While all these jobs challenged me, I never felt my potential being utilized. Finally in 2008, I completed the Ontario Mortgage Agent Course and signed up with The Mortgage Alliance Company of Canada. This was a great decision, as it allowed me to use the skills I learned working to help people achieve their real estate and financial goals. My passion for real estate and numbers has lead me to becoming a mortgage agent. Growing up in New York City, I always had a fascination of historic buildings and skyscrapers. At 21, I bought my 1st property and have been investing in real estate ever since. I firmly believe thru steady, safe and conservative investing a one can obtain long term financial wealth. One day, I hope to develop the same buildings I help clients purchase.
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