First Foundation’s Best Rates For the Week:
1 Year 2.89%
2 Year 2.89%
3 Year 2.79%
4 Year 2.99%
5 Year 3.19%
7 Year 3.99%
10 Year 3.89%
ARM / Variable 2.80%
Line of Credit 3.50%
Prime Rate 3.00%
Qualifying Rate 5.24%
The S&P/TSX composite index jumped 109.68 points to 12,537.69 as the U.S. Federal Reserve pointed to further indications that the economic recovery south of the border is continuing at a slow but steady pace.
The Fed left its key interest rate near zero and said that it expects to keep rates exceptionally low through at least late 2014. It also announced that strains in global financial markets have eased, US household and business spending have continued to advance and labour conditions are improving.
BMO re-launching it’s controversial 2.99%, 5 year fixed rate this week. Remember, the BMO mortgage comes with limitations, for instance, once this mortgage has closed you are only able to break the mortgage via a bonafide sale of the property or by refinancing into another BMO mortgage, leaving you tied to this lender for the full five years ( or longer if you refinance).
However, First Foundation’s four year fixed rate which is also at 2.99% aswell as our five year at 3.19% come with full prepayment privilages and can be broken ( with the usual penalties) in order to switch to another lender.
BMO’s rate drop may be short lived as the 5 year bond yield hit a 19 week high on Tuesday. Upward momentum in bond yeilds usually cause fixed rates to climb and this could cause some mayhem in lender-land this week as they scramble to both compete with BMO and make hay while the bond yeilds shine.