FIXED Versus VARIABLE TERM?
Here are some simple facts to consider when you think about Fixed VERSUS Variable term:
“The Bank of Canada slashed interest rates by half a percentage point Tuesday amid worrying signs that the economic slowdown could be steeper and longer than previously thought.” – Julie Beltrame (The Canadian Press), April 23, 08
“…the last time the bank cut the rate by 50 basis points on March 4, short-term lending rates dropped in response, but five-year, and 10-year bond rates actually went up.”
“The Canadian Real Estate Association offered further evidence consumers are not receiving the full benefits of monetary easing. The group said five-year conventional mortgages in Canada were 6.99 per cent prior to the central bank’s latest action, just slightly above where they stood a year ago.”-Julie Beltrame (The Canadian Press), April 23, 08
“If you’re looking to borrow money, now might be the time to be thinking of locking in the interest rate. As a matter of fact, consumer and commercial rates may have already bottomed and may not respond further to BoC easing tomorrow. Mortgage rates, for instance, are priced off 10-year government bond yields and those yields moved higher last week in spite of expectations that the BoC is going to cut its overnight rate this week. If we’re not at the bottom of the interest rate cycle, we’re darn close.” –Paul Lennox, CFA Corporate Treasurer (Custom House) April 21, 08
You’ll notice that the above suggest that the fixed rate term should be given careful consideration in today’s market condition based on where we are in the interest rate cycle.
If you consider converting your term to a fixed rate — PLEASE don’t just contact your Lender — Call me so we are getting you the best possible fixed term available on the market today !

Remember that my role is to always assist you in exercising the best possible mortgage financing option. Also keep in mind that I build my business from referrals of clients and associates like you and I appreciate your continued support. Looking forward to hearing back from you at your convenience.