CMT’s Mortgage Term Review has been freshly updated.
Some of the notable points:
- At the moment, 2- and 4-year fixed terms seem to be in the value zone.
- Hybrid mortgages have gained some prominence since the last go-round in May.
- Readvanceables continue to be an excellent choice for those with 20% equity.
The full comparison is posted on CMT’s Mortgage Term Review page.
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Last modified: April 28, 2014
The difference between 4-yr and 5-yr fixed is quite noticable (3.xx% is still possible for 4-yr at least)
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How do I do better than prime rate? TD is offering 2.75 one year and BMO matched it, but better than prime? Where?
I think he means better than a variable based on prime which would be prime plus XX%, or about 2.75%…
Hi Keith,
You have to wait it out to get prime on a variable. We’ll get there but it may take several months.
In some provinces (Ontario for example) you can already get prime + 0.25% on a variable.
A one-year is still a better option because you can find them slightly cheaper, you have a year of rate protection, and you can renew into a (hopefully) better priced variable in 12-months.
Talk to a good mortgage planner or drop me an email. You should be able to find 1-years with better terms.
Cheers,
-rob
Rob
Thanks for your help.
Keith
Hi Rob and others…
Another newbie question on “Readvanceable Mortgages” what typically is the repayment term on the LOC portion of your loan?
Thanks!
Hi Paul,
Readvanceable LOCs are open and can be paid out in full any time.
The minimum payments are usually interest-only.
Cheers,
-rob