Fixed Or Variable Rate?

We are getting this question a lot these days as the variable rate is about 1.35% lower then the current five year fixed rate. there is now a new product that allows you to have the best of both worlds. The 50/50 mortgage is exactly as it name states. you have your mortgage split into two portions, one variable and the other fixed. This gives you peace of mind as well saving you money at the same time with the variable option. The best of both worlds as they say.

Bond Rates On Mortgages

Banks Continue To Profit On Mortgages

Since my last blog, we have seen the bond yield on the 5 year rate drop in the consumers favor. The banks have not followed suit as the spread is very profitable for them at the current levels. If the bond trend continues to go lower,the banks will be very slow to pass on the savings to the consumer.