Alberta’s Best Mortgage Rate - 3.89% on a 5 year fixed
Check out the best fixed and variable mortgage rates
Although rates were at 3.69% on a five year fixed, we are know currently at a 3.89 on a 5 year fixed and there are only a few lenders offering it. One great thing about this mortgage is it can be used purchases, Mortgage Renewals, and Mortgage refinances but it can only be held for 30 days from the time I submit the application.
Where are rates going from here? Who knows - we are on uncertain times. Generally when the economy isn’t doing so hot they keep the rates low. Our economy and especially the housing market are definitely showing all the signs of the recession being over. The problem is it isn’t that simple. You have to consider the increase in our dollar, increase in Jobs, problems with our Southern Neighbors and pretty much every other economic situation in the world. Imports, Exports, an increase of printing money and whole bunch or other factors and the rates are a result of all of that. Economists and even the bank of Canada don’t seem to be very sure what they should do.
Everyone seems to have their guesses about what this will do to interest rates, fixed and variable but as consumer confidence continues to grow I feel that we will continue to see rates low for the most part of 2010 and even into the beginning of 2011 and then look for the rollercoaster ride of rates trending upwards until we get back to normal rates of 5 – 6%. Because of the uncertainty, many will still be working hard to get Alberta’s best mortgage rate locked in.
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Newest update for Variable Rate Mortgage Fans
So if you are still trying to decide between fixed and Variable rate mortgages here is a positive for those leaning towards the variable rate mortgages. The Bank of Canada today announced that it’s overnight lending rate is staying the same. What that means is that Prime is still at 2.25%. They say the following reasons are why they have not raised rates:
- “Heightened volatility and persistent strength in the Canadian dollar are working to slow growth and subdue inflation pressures.”
Many economists with re looking at their early statements of supporting Bank of Canada’s statement of them not increasing rates until the second quarter of 2010 because of these reasons:
- “Stronger business and consumer confidence”
- “Increase in household wealth”
- “Higher Commodity prices”
Personally I have seen a huge increase in consumer confidence not only in Real-estate but also people investing in paper assets again. Although many people have noticed a huge increase in spending here are some comments the Bank of Canada is making on inflation and economic growth. “Growth is expected to be slightly higher in the second half of this year than previously projected but to average slightly lower over the balance of the projection period. The Canadian economy is projected to grow by 3.0 per cent in 2010 and 3.3 per cent in 2011, after contracting by 2.4 per cent this year. This is a somewhat more modest recovery in Canada than the average of previous economic cycles.”
All in all I feel that Prime’s days of not increasing are numbered. Australia, the first of 20 countries, has already raised their central bank rates. Could Canada be number two? Whatever report you read the ending point is always the same, you as the consumer have to make the best choice for you. Can you afford your mortgage if rates do jump up? Are you going to watch carefully enough to be able to lock in your rates if they jump up higher than what is comfortable for you? If you feel you can ride it out then Variable is a great choice. If you will lose sleep over it then getting the best fixed mortgage rate is my suggestion for you.
Fixed Mortgage Rates are going Up!
Fixed Mortgage Rates are going Up!!
So what are the rates going to do? Well here is the information and I’ll let you decide. The 5 year bond rate, one of the biggest key indicators for 5 year fixed rate mortgage rates, has just increased over 23 points. The bond 5 year bond rate has been increasing for the last couple of weeks but this is the largest jump in the last year. Not very long after the jump, Royal Bank announced an increase in their mortgage fixed rates. Here is what they have announced.
