I stand corrected. Earlier this fall I mused on my blog that fixed rate mortgages had run their course and would hold steady or trend upwards gradually into 2012 and beyond.  I thought that the period of ultra low fixed rate mortgage money was over  and that banks wouldn’t pass on rate discounts  to borrowers any longer but just this past weekend Merix Financial introduced a new fixed 5 year mortgage at 3.25%. This is the lowest fixed 5 year mortgage rate we’ve ever been able to arrange over the 34 years of our brokerage Tridac Corporation Ltd.

Apply below for your 3.25% fixed 5 year rate and I’ll follow up with you right away or give me a call at 416.461.0204ext2 to discuss over the phone. Keep in mind that my services are free of charge to you as I get compensated by the mortgage lender through a standard finders fee.

Not sure if you’d like to work with me? Read what my clients have to say.

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Here’s the situation: you’re in the market for a mortgage. Your timing is perfect because rates have never been so low.  Your colleagues at work took a variable and can’t believe the unbelievably low effective rate they are paying. Your parents are conservative old school and think it would be foolish to pass up on locking in a fixed 5 year for less than 3.50%. What are you to do?

Take the best of both worlds!

At the time of writing the effective rate for a 5 year variable rate mortgage is 2.55% with very little probability that the Bank of Canada prime rate will change in the near to mid-term. A fixed 5 year is at 3.49%.  The spread between the two options is only 0.74%.  If you are a consumer trying to decide fixed vs variable, it would be difficult to determine which option will out perform the other. We are really in uncharted territory… both have pros and inherent drawbacks.

Here’s how you can protect yourself: take a 50/50 mortgage. The 50/50 mortgage allows you to lock half of your balance as a fixed rate and the remaining half as a variable rate mortgage.  In doing so you are benefiting from the positives of each and spreading the risk over your entire mortgage.

Most people would agree that investment diversification is the key to a solid investment portfolio. The same holds true for your mortgage: Rate diversification.

There are only a handful of lenders who offer these great 50/50 mortgage products. One of my favorites is Merix Financial who are currently offering their 50/50 Wise Mortgage at 3.02%

FIXED: 3.49%

VARIABLE: P-.45 (2.55%)

If you have any questions or would like to see if a 50/50 mortgage is the right fit for your mortgage needs get in touch with me. Best of all, I get compensated through a finders fee so my service won’t cost you a thing.
 

I didn’t manage to get this post up yesterday it was way too nice of a day! As explained in past videos, fixed rate mortgages are dependent on bond yields. Over the past 2 weeks the yields have suffered as a result of the economic turmoil in Europe caused by the Greek crisis. Even positive economic data like increased inflation and record breaking retail sales in Canada weren’t enough to bolster interest rates. This of course is good news if you are buying or remortgaging. A recent article in the Toronto Star “Rate Hike Not Guaranteed“  by Emily Mathieu argues that the Bank of Canada may not have the ability to increase the prime rate on June 1st. If you are stumped on how to position your mortgage in these unique times get in touch with me.

Chris Molder – Son Of A Broker

2.85% – 1 Year Fixed

3.85% – 3 Year Fixed

4.35% – 5 Year Fixed

3.10% – Merix 50/50 Mortgage (Fixed/Variable hybrid)

P-.50   3 Year Variable

P-.50   5 Year Variable

NOTE: Rates are subject to change without warning at the lender’s discretion.

Click here to view the embedded video.

The problems over seas in Europe are already hitting close to home as bond yields have dipped for the last couple of days indicating that investor confidence is shaken. This bodes well for borrowers looking to get into fixed rate mortgages as there may be a reversal to the sharp steady increases to fixed rate mortgages over the past couple of weeks. Today, Merix Financial announced that they are lowering their fixed 5 year to 4.35%.

Click here to complete an application for a Merix Financial Mortgage today.

After a very quick increase to fixed rate mortgages over the past 2 weeks mortgage lenders have started to compete for the new fixed 5 year. The standard rate is 4.59% however some lenders have introduced their quickclose rate at 4.39%.

The dilemma of deciding to go fixed over variable is on every borrower’s mind these days. Over the weekend the Globe & Mail featured the following article “Possible Rise In Mortgage Rates Pitting Couples Against One Another” . The spread between fixed (4.59%) and variable (1.75%) is about 2.80% which is significant. We know that in the coming months the Bank of Canada will increase the Prime Rate but with the latest report from Statistics Canada indicating that inflation was down in March it is questionable how quickly the prime rate will move up.  Variable is looking like the better option these days but if you can’t make up your mind there is always the Merix 50/50. (3.25%)

5 Year Fixed – 4.54%

Quickclose 5 Year Fixed – 4.39% (must close before June 15th 2010)

3 Year Fixed – 3.84%

1 Year Fixed – 2.65%

Merix 50/50 Hybrid – 3.25% (current effective rate)

3&5 Year Variable P-.50% (1.75% current effective rate)

Rates subject to change without notice.

Click here to view the embedded video.

Merix is leading the way down with their 3 year variable rate mortgage. They announced yesterday evening that they are now offering Prime minus 0.50 which currently gives the borrower an effective rate of 1.75%! We are now back down to the same variable rate spreads that we saw pre-financial crisis fall 2008. The rate is good for 90 days, the rate is available for refinancing, purchases or switches at maturity of your existing mortgage. If you would like to explore if a 3 year variable is right for you, contact me.

Chris Molder – Son Of A Broker

Bond yields are up which would typically result in an increase to fixed rate mortgages however lenders are artificially keeping rates low in order to gain market share. This is good for borrowers currently in the market however don’t expect the low fixed rates to stay around forever as it only takes one bank to break the deadlock and we could see rates jump up by 0.50%. To secure a low rate give me a call or e-mail me for a quick consultation.

Chris Molder – Son Of A Broker

1 year fixed – 2.65%

3 year fixed – 3.35%

5 year fixed – 3.79%

3 year variable – Prime-.40% (1.85% effective rate)

5 year variable – Prime-.30% (1.95% effective rate)

RATE SPECIALS

5 year fixed – 3.69% (must close by April 26th 2010, purchase & refinance only)

NOTE: Rates are subject to change without warning at the lender’s discretion.

Click here to view the embedded video.

Although bond yields rose last Friday as of Monday March 8th Toronto Mortgage Interest rates remain unchanged. Over the weekend some lenders have warned of the possibility of fixed rate mortgages increasing. This weekend I decided to deliver my Monday Mortgage Minute from the slopes of Mont Tremblant Quebec, however I am back in the office this week refreshed and recharged after a nice little ski vacation. If you would like to contact me please write or call 416.461.0204 ext 2.

Chris Molder – Son of A Broker

1 year fixed – 2.65%

3 year fixed – 3.35%

5 year fixed – 3.79%

3 year variable – Prime-.40% (1.85% effective rate)

5 year variable – Prime-.30% (1.95% effective rate)

RATE SPECIALS

5 year fixed – 3.69% (must close by April 26th 2010, purchase & refinance only)

NOTE: Rates are subject to change without warning at the lender’s discretion.

Click here to view the embedded video.

To start the month, there is a new variable rate mortgage! I can now offer Prime minus 40 (1.85%) on 3 year variable mortgages. It was also announced after I recorded my video, that the 5 year fixed rate special that I was offering at 3.69% has been extended for closings up until April 26th. Tomorrow, March 2nd, the Bank of Canada will be making their announcement on the prime rate. They are widely expected to leave the rate unchanged. If you are looking to be approved for a mortgage or have questions about your existing mortgage, get in touch with me.

Christopher Molder - Son Of A Broker

1 year fixed – 2.65%

3 year fixed – 3.50%

5 year fixed – 3.79%

3 year variable – Prime-.40% (1.85% effective rate)

5 year variable – Prime-.30% (1.95% effective rate)

RATE SPECIALS

5 year fixed – 3.69% (must close by April 26th 2010, purchase & refinance only)

NOTE: Rates are subject to change without warning at the lender’s discretion.

Click here to view the embedded video.

Again Merix Financial is the first “kid on the block” to introduce a new variable rate. Fresh off the press Merix is now offering P-.40 on their 3 year variable rate mortgages! The effective mortgage interest rate is currently (2.25-0.40) = 1.85%. The mortgage is available for 90 days and is available to purchasers who purchase with as little as 5% down. The mortgage is also available for refinance and transfers of mortgages.

Merix only deals through qualified mortgage brokers. To find out how you can secure a Merix mortgage please contact me.

Christopher Molder – Son Of A Broker