"Fixed rate mortgages will probably never be as cheap as they were during the last few weeks. Insiders from the big banks tell us that those low rates of around 3.7% or even less for a 5-year term mortgage are gone. Whoever was smart enough to take it, will save big time. Those on the sidelines, who are still contemplating the economy, will end up paying more."
"On top of increasing fixed interest rates across the board, this week brought another changewith a negative effect on self employed individuals. One of the Canada's mortgage insurers again raised the bar for creditworthiness. If before self-employed were able to purchase rental properties with only 5% down payment, now they need at least 10% down payment and their credit history must be excellent. And some lenders have already discontinued their rental programs all together."
"That said, the best strategy at this point remains to go with a Variable rateit is cheaper, at least for now."
With kind regards,
Accredited Mortgage Professional
License # M08000574
Verico Capital Mortgages Inc.
106 - 18 Deakin St, Ottawa ON K2E 8B7
Direct Line: 613-882-7603