I can’t believe it’s the end of November already. 2013 is almost gone! In this month’s edition, I want to share with you a time-specific topic … I get the same question from my home owner clients a lot, and that is, “My mortgage is coming up for renewal, should I go fix or variable?”
At time of this writing, prime rate is at 3% and it has been standing still at 3% for more than 3 years now. Experts are saying that they don’t expect it to change until early 2015. The best variable mortgage product currently available out there is P-0.45% which is equivalent to 2.55% while the 5 years fixed rate is around 3.49%. So it makes sense to get the variable rate and save yourself some interest for the next couple of years. Plus, the penalty for getting out of a variable mortgage is only three months interest payment.
However, it’s a totally different approach when it comes to borrowing for commercial properties. Commercial mortgage rate is based on various factors and I won’t go into it in details. Shoot me an email if you’d like to learn more about this topic. When it comes to commercial properties, you want to find the cheapest rate possible and lock it in for as long as possible. You want to know what your borrowing cost will be on a consistent basis because the borrowing cost is a business expense and you want it to be predictable.
There are many factors that come into play when selecting the right kind of mortgage, such as the kind of property, the purpose of the loan, how long you need the loan, etc. … When in doubt, contact me! I can help you find the most suitable product tailored to your specific needs and get you the best rates possible!
How I work is quite simple … I work with you in mind! Feel free to contact me for a free, no obligation consultation today.
