Mortgage Wars - Beware of Averages
We’ve heard of gasoline price wars, but what about mortgage rate wars?
For the third time since the beginning of August, major financial institutions have cut their fixed-term lending rates for five-year mortgages. The latest reductions have BMO, CIBC and Laurentian Bank
lowering their five-year rates by ten basis points to 5.39%.
Despite lagging sales activity, a report by the Conference Board of Canada
states that housing prices are holding steady and affordability is eroding.
Until June, external influences – namely new mortgage rules and the HST in Ontario and British Columbia – drove demand and prices upward. However, predictions are that prices will cool
toward the end of 2010.
Always take a local perspective when investigating home prices. National reports are often based on ‘average home prices’, which are heavily influenced by major metropolises across Canada. If you’re interested in buying a home in your favourite neighbourhood, don’t assume that national averages apply to your market. For example, read this report on Calgary home prices
CENTUM mortgage brokers have access to lower rates than those posted - and they look out for you, not the lender. Calculate your potential mortgage payments and compare renting versus owning, using CENTUM mortgage calculators.
Posted by CENTUM Canada
on August 25, 2010