Right now the lowest variable I have seen offered is Prime +.6%. I am interested to see if the banks keep this offering or if they are going to raise it to Prime plus 1 or higher. Prime less .75% was common a few months ago until they all dropped prime by .5%. All of a sudden variable rates were offered at Prime +1% and they just recently dropped to Prime +.6%.
I myself have Prime less .75% on a number of the mortgages I have. But like others have mentioned I got my mortgage at least a few months ago when Prime was at around 5%. People who have lower than Prime variable mortgages are getting screaming good deals right now. This is a good time to be putting extra money towards your mortgage especially if it is in the early stages of the mortgage. You will be saving yourself a lot of interest in the long run.
It looks like the banks are only going to drop their rates by .5% not the full .75%. That is the indication from TD so far anyways and they generally all do the same thing. I'll keep an eye on things and keep this updated.
I'll keep a special eye on First National as well for Fobulous.
Just to summarize. Yesterday Prime was 4%. If the banks drop .5% which looks like what is going to happen then Prime is now 3.5% so if you have Prime less .75% you are now paying 2.75%. Doesn't get much better than that. Even at Prime +.6 a rate of 4.1% isn't too bad either.
Just as a side note a lot of banks have dropped their fixed rates as well. I have seen 4.99% for a 5 year fixed. I am waiting to see if anyone goes lower than that.
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