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25 Apr

Variable Rate Versus Fixed Rate/Insurance Going Up May 1, 2014


Posted by: Kimberly Walker

It’s Friday and since we heard Bank of Canada Governor Stephen Poloz mention that it’s unlikely rates are increasing any time soon (article below) it’s a good day to talk variable rate mortgages. Yes, not everyone can qualify at the BOC 4.99% rate and some clients prefer fixed rates  – but there are still lots out there who prefer this option (roughly 35% of the market)

Perks of Variable Rate Mortgages:

  •  Lower payments
  •  Paying down principle faster
  •  Lower penalty if the mortgage is broken (3 months interest)
  •  Can convert to a fixed rate mortgage at any time without penalty

We have some great options for those Variable Rate Clients – 4yr at P-55% // 5yr at P-50% and our Lendwise 5yr at P-55% with stricter underwriting guidelines.

IMPORTANT REMINDER — May 1st is the deadline for when the new insurance premiums go into effect.  Which means the deals need to be underwritten and sent to CMHC/GW by Wednesday April 30th at 9pm Pacific Time.  Thanks, Cindy and Amanda