What? Only 1.99
Percent Financing. Wow!
The news is all abuzz about the latest rate offered by the
Investors Group. They are now offering a 36-month closed, variable-rate
mortgage at 1.99 per cent, well below the current standard of around three per
cent.
Against the advice of
the Jim Flaherty
The late Finance Minister, Jim Flaherty opposed the rate
when in the past, the Bank of Montreal first tried it. He criticized the
mortgage rate as possibly destabilizing the economy by triggering a drop in the
housing bubble.
What Does Joe Oliver
Think?
Earlier this year, Joe Oliver took over as finance minister
from Jim Flaherty and as he has stated in the past, the government has no plans
to intervene in a private market setting. According to him, a mortgage rate set
by a ‘private’ business is a ‘private’' decision.
But, Investors Group is
Getting a lot of Press
Kerri-Lynn McAllister of RateHub.ca, a company that tracks
mortgage rates has stated, "When somebody comes out with a rate like this
it gets people talking about mortgages…it heats up the market.”
Don’t Get into
Financial Situations that You Shouldn't Be In
Peter Veselinovich, vice-president of banking and mortgage
operations at Investors Group, said, Like with any other product, when it comes
to the three-year mortgages, Investors Group will "make sure that it's the
right product for the people and that they can afford it and have the
appropriate cushion." He cautioned that the one condition attached to this
low rate is that you can't break the mortgage unless you sell the property for
the three-year period.
Check Out the Other
Guys
Royal Bank has lowered its rates on several fixed-rate
mortgages this January. This brought its five-year closed rate to 3.69 per
cent. It now sits at 4.94 per cent, while the variable five-year rate is at
three per cent. The next lowest rate for a variable three-year rate from one of
the banks came from Laurentian Bank at three per cent. The latest figures are
Scotiabank’s five-year variable rate at 2.60 per cent. BMO, TD, CIBC,
Laurentian and National Bank are all at about three per cent, according to
RateHub.
Is it the right time for you to buy a house? Have questions?
Why not give Chris a call?
Call 403-680-4479 Follow my Blog: http://www.yourhomeinalberta.blogspot.ca/
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