Variable Rate Update - July

Good Morning , As you know, I recently announced the Variable Rate Management Plan which is available to you all as you hold a variable rate mortgage. The objective is to ensure you're up to date with what's happening in the rate market & know whether you should lock into a fixed rate. You'll be receiving this update after every Bank of Canada announcement, which dictates how the Prime Rate moves. On July 15th, as expected the Bank of Canada held the overnight interest rate at 0.25% in response to what as it calls "extremely uncertain" economic outlook due to COVID-19.  What this means to you is that the prime rate (2.45%) on your mortgage or line of credit will REMAIN the same!For the first time ever, the Bank of Canada Governor publicly stated: "If you've got a mortgage... you can be confident that interest rates will be low for a long time." Essentially reassuring homeowners & prospective homebuyers that interest rates will remain low for some time. Summary of Bank of Canada's Latest Rate Announcement

• Prime Rate: 2.45% 

• Rate Forecast: NO rate hikes until at least 2023

• Next Rate Meeting: September 9th, 2020

 How will this affect you?

• $0 - your variable rate stays the same.

 What can you do?

• Stay the course if you have a variable rate of less than 2.10% (Prime -0.35%)

 ATTN: If you have a variable rate higher than 2.10%, we can save you THOUSANDS by switching you over to today's historically low fixed rates. 5-year term fixed rates currently range between 1.99%-2.39%. 

What should you do?

• We recommend staying the course or taking advantage of our SWITCH (see above)

• This depends on your situation, remember the variable-rate still provides the flexibility of a low penalty and likely still an interest saving. 

• If you would like to lock into a fixed rate, I only recommend this IF you don't have plans on taking out equity in your current home for the next 5 years

• If you CHOOSE to switch to a fixed rate, reply to this email to book a call where we will compare the cost and interest savings now vs. your current rate to ultimately help you save money.

As always, If you have any questions or looking for guidance, feel free to reply to this email or reach out to me.If you know of anyone else that could use this same type of ongoing advice and support, your recommendation will mean a lot as I would love to help them as well. 

Best regards, Varshan ThavarajahMortgage Broker & Partner | MBL # M1600275Banyan Mortgage Group | FSRA #10530647-404-8812[email protected]Your Success Lies In Our Roots

Reach out if you are THINKING about Buying or Refinancing.  Contact us early to get ahead of the game, even if your mortgage is not up for renewal until next year.   How to Reach ME!  Call or Text @ 647-404-8812 or Email Book a call - https://calendly.com/mortgage_nerd