How the Banks Change?

Well we are in the beginning of a financial storm. We have seen some wild ups and downs in the stock market. This has lead to the Canadian banks changing there polices and mortgage options on almost a daily basis. The biggest change has been on the variable mortgages which used to be based on prime or a prime- system. they are now all on a prime plus rate which is not in the best for the consumer. We are also seeing the rates on fixed rate mortgages about half a percent higher then they should be. If you are currently on a variable rate mortgage, stick with it. For all our new clients, we will be working harder then ever to make sure the right product is available for you.

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.