First Foundation’s Best Rates to Open the Week:
1 Year 2.64%
2 Year 2.99%
3 Year 3.09%
4 Year 3.09%
5 Year 3.39%
7 Year 4.69%
10 Year 4.89%
ARM / Variable 2.43%
Line of Credit 3.50%
Prime Rate 3.00%
Qualifying Rate 5.39%
Toronto’s main stock index rallied for a fourth straight day on Tuesday, reaching its
strongest point in nearly two weeks, as rising commodity prices propelled resource-based shares higher.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 129.86 points, or 1.04 percent, at 12,634.71. It touched a session high of 12,664.72, its strongest since Aug. 17.
Most lenders have now reduced or are about to reduce, the variable rate discounts. Discounts were as low at prime – .90% up to last week but have now been reduced to prime -.57%, putting the rate at 2.43%, for the moment.
Why should this matter to you?
Prime would only have to jump from it’s current 3.00% to 4.00% to make the variable rate look bad compared to the current fixed rate offering. The 1% jump would put the variable rate at 3.43% which is higher than our current best five year fixed at 3.39%. Savings could be had while prime stays at 3.00%, probably into late 2012, but variable rate holders may be forced to lock into a fixed rate a goof bit higher than what they could obtain now, making the overall savings negligible.
On the flip side, the four year fixed rate is a terrific deal at 3.09% and can be a great term to choose as studies show that most people make a move or refinance every four years.
Not sure which type of rate is best for you? Don’t stress it – contact our experienced mortgage brokers today to help you find the perfect fit for you financial goals.