May 2011 Interest Rates Update

Mortgage rates have been fairly stable – the pattern is one we are familiar with….a rate increase of .25%  and then gradually the pricing starts to settle back around 4% on a 5 yr fixed rate.  More buyers are considering a shorter term of 3 or 4 years to take advantage of lower rates.  A snapshot of today’s best rates follows but just like gas prices these rates can change at any time.

In the past 2 weeks both the Globe and Mail and the Toronto Star have provided their readers with sections devoted to mortgages.  The message is consistent:  buyers need to pay attention to the mortgage features and options.  Depending on the down payment, many will be paying more in interest over the life of the mortgage than the property purchase price.  The details may be boring but small differences in options or the way interest is calculated makes a big difference to the borrower’s bottom line. I can connect my clients with an experience mortgage specialist to understand these important differences and give them the power to make their best choice.