Financing

Mortgage Rates

As the roller-coaster ride continues with fixed rates, bond yields dropping from about 2.7% 4 weeks ago down to 2.44% as of Feb 3rd has prompted some lenders to reduce their fixed rate products, says Kyle Green of Mortgage Alliance (1-888-531-8890 or cell 604-551-8976). As a side note, a recent study found that currently 68% of Canadian homeowners have fixed rate mortgages. Of the 32% who are on a variable rate mortgage, 88% of those people have saved money by sticking with a variable rate over the past 10 years. Of course, this has been during a period in which we have seen 9/11, the tech stock bubble and the sub-prime meltdown in the US keep Prime lending rates very low. During what could be an inflationary period over the next 5 years, this should be more of a crap-shoot moving forward.