Mortgage Rates as of October 27,2008
Mortgage Rates:
as of October 27, 2008
|
Term |
MBDC |
Posted |
|
6 Month |
6.20 |
8.15 |
|
1 Year Closed |
4.80 |
6.35 |
|
2 Year Closed |
5.25 |
6.70 |
|
3 Year Closed |
5.50 |
7.04 |
|
4 Year Closed |
5.70 |
7.04 |
|
5 Year Closed |
5.79 |
7.20 |
|
7 Year Closed |
6.25 |
7.65 |
|
10 Year Closed |
6.45 |
7.80 |
|
Variable Rate |
5.00 |
6.35 |
Andrew Kyle said,
October 18, 2008 at 1:22 pm
Hi Wendy,
Thanks for the update – a great summery.
The variable rates seem to have gone up quite dramatically in the last 2 to 4 weeks or so. Why is this? The Bank of Canada (BoC) overnight rate has been cut (in a coordinated move with many other federal banks around the world). Do variable mortgage rates normally follow the trend setting BoC rate?
wendygoodsir said,
October 18, 2008 at 10:49 pm
The variable rates have change significantly over the past few weeks. Lenders have recently stopped offering the discount off of prime and now offering prime plus one percent on their variable mortgages.
A few weeks ago before the Bank of Canada lowered the prime lending rate the banks increased the variable rate mortgages to prime plus one. No longer offering the discount on variable mortgages. The banks / mortgage lenders do not use the same lending rate as the Bank of Canada. The prime rate varies among banks, and adjustments are generally made by banks at the same time as the Bank of Canada, although they do not have to offer the same discount.
When the Bank of Canada decreased the lending rate by a half percent the banks only decreased their rates by a quarter.
Variable Rate mortgages are currently at 5.35%
Andrew Kyle said,
October 20, 2008 at 2:12 pm
Thanks for the explanation Wendy.