In his latest video blog installement, Toronto mortgage broker, Christopher Molder, summarizes mortgage interest rates.
Christopher points out that RBC's sudden move to reduce the spread on their variable rate mortgage resulted in the rest of the market to follow. Previous to the change the average spread for a 5 year variable was P-.75%. As of August 31, the spread narrowed to P-.50%. There was tremendous competition between lenders for variable rate business which really squeezed their profit margins. It has also been interesting to observe how many clients are flocking to variable rate mortgages. Not too long ago it was difficult to educate borrowers of the benefits of variable but today there is a very obvious shift in the way borrowers are understanding their mortgage financing options.
If you have a question about your mortgage or are just plain shopping around, give Christopher a call, he's always available and is ready to answer your questions. 416.461.0204x2