Variable Rate Mortgage Discounts Looking Good!

With fixed rates that have risen from all time lows and not likely to decrease again, variable rate mortgages may be an option for you. Also, with the rate discounts looking good it may be time to think about going with a variable. Currently the best variables are as follows:

*Prime rate today is currently 2.50%

1) 5 year variable closed at Prime – 0.60% (1.90%) – offered by one lender with great pre-payment privileges.
2) 3 year variable closed at Prime – 0.65% (1.85%) – offered by one lender with great pre-payment privileges.

One factor when deciding if a variable rate mortgage is for you is to know that as the prime interest rate fluctuates so can your mortgage payments. This means with today’s prime rate still at a very low level and expected to increase about 3% over the next three years, your payment may increase substantially. In addition with the new qualifying rules brought in place recently by the federal government you now must qualify at the 5 year bank rate which is currently 5.99%. Therefore you will not be able to qualify for as large of a mortgage as if you went with a 5 year fixed rate mortgage.

Please contact us today if you can handle the payment fluctuations and are able to qualify for your purchase at the higher qualifying rate or to inquire further if the variable rate mortgage is right for you.

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Any questions at all about mortgage financing please refer to our newly designed website at www.yourmortgagecontact.com or call us today. In addition please let your family and friends know about Your Mortgage Contact. We appreciate all referrals and everyone always receives personalized service. Please contact Betty at 403-532-3927, e-mail bsaskiw_prolink@telus.net, Kevin at 403-589-3021, kevsas@telus.net or at our updated website: www.yourmortgagecontact.com

Sincerely,

Betty Saskiw, AMP
Mortgage Associate

&

Kevin Saskiw, CFA
Mortgage Assistant