Bank Of Canada Historic Move

The bank of Canda took a new direction in the marketplace. They effectivly have said prime rate will not be changing for one year. Prime is now set at 2.25% and the BOC rate at .25%. these rates are both the lowest in the history of interrst rates in Canada. What does this mean to the mortgage world. Clients you have variable mortgages below prime are in excellent postion and will now be enjoying rates of 1.35-1.50%. We now have the lowest 5 year fixed rate at 3.75%. this has created great affordability in the marketplace for all canadians.

Intererst Rate Penalties

With mortgage rates now at historic low levels. Mortgage holders are now finding out about IRD penalties that the banks are charging. This is the loss of interest that the bank will be losing for the balance of the mortgage term that you are currently in. I would recomend that before looking at selling or refiancing, request a mortgage payout satement. This will quote your penalty and will also alow the penalty to not increase for 10-30 days depending on the lenders policy.