There has been a slight drop in long term rates of 0.05%. Currently two lenders are offering 5.69% for a 5 year term. It is quite possible that we could see this rate edge lower by year end. There has also been a major change in some variable rate mortgages. Several major lender's lowered the discount they are offering on variable rate mortgages due to the higher cost of short term money as a result of the "world liquidity situation".
They were offering rates as low as prime minus 0.90% or 5.35% at todays prime and now have raised the rate to prime minus 0.50% to 0.70% depending on the lender. There are still several lender's who have held off raising the rate and are still offering full discounts, but we do not know how long this will last. If anyone is considering going variable they must act quickly to secure the better rates. Considering the expected drop in rates this is a viable option to take.
If you are looking to buy a home in Mississauga or the GTA, now is the time to get in the market. Don't forget about the first time home buyer's plan which will allow you to take out up to $20,000 per person out of your RRSP tax free for your downpayment.
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