Current interest rates?

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sunshine
Posts: 23
Joined: Tue Jun 03, 2008 5:55 pm

Current interest rates?

Postby sunshine » Tue Jun 03, 2008 6:03 pm

Does anyone know what is the current interest rate if you get a 25 year mortgage?
First time home buyer?

spencer
Posts: 37
Joined: Thu May 29, 2008 8:46 pm

Re: Current interest rates?

Postby spencer » Tue Jun 03, 2008 6:22 pm

Are you talking about 25 years fixed mortgage or about mortgage with 25 year amortization, with locked rate for 5 years for example?

I've just check on RBC's website and they advertise 25 closed mortgage rate of 8.55%, but you'll have to call to find out their special rates (presumably lower). The 5 year closed mortgage special rate is 5.59% os of today.

theway
Posts: 26
Joined: Tue Jun 03, 2008 6:33 pm

Re: Current interest rates?

Postby theway » Tue Jun 03, 2008 6:40 pm

Most mortages offered in Canada are ARM (adjustable rate mortages). Even though you can lock in a fixed rate for a few years (usually 1, 2, 3, 4, 5, 7 and 10) the interest rate will get adjusted eventually after the end of the fixed rate period. Also don't forget that a very high percentage of all new Canadian mortgages are with less than 5% down and with 40 years amortization and with variable interest rate, which spells big trouble in the Canadian housing market for years to come.

sunshine
Posts: 23
Joined: Tue Jun 03, 2008 5:55 pm

Re: Current interest rates?

Postby sunshine » Thu Jun 12, 2008 3:28 pm

spencer wrote:Are you talking about 25 years fixed mortgage or about mortgage with 25 year amortization, with locked rate for 5 years for example?

I've just check on RBC's website and they advertise 25 closed mortgage rate of 8.55%, but you'll have to call to find out their special rates (presumably lower). The 5 year closed mortgage special rate is 5.59% os of today.


I didn't know we can get fixed mortgage for 25 years. Thanks for the info, even though the rates are very high :shock:

rock
Posts: 20
Joined: Tue Jun 10, 2008 3:06 pm

Re: Current interest rates?

Postby rock » Wed Jul 23, 2008 6:51 pm

sunshine wrote:
spencer wrote:Are you talking about 25 years fixed mortgage or about mortgage with 25 year amortization, with locked rate for 5 years for example?

I've just check on RBC's website and they advertise 25 closed mortgage rate of 8.55%, but you'll have to call to find out their special rates (presumably lower). The 5 year closed mortgage special rate is 5.59% os of today.


I didn't know we can get fixed mortgage for 25 years. Thanks for the info, even though the rates are very high :shock:


The rates might look high to you today, but just wait until the rates start rapidly rising to compensate for the out-of-control inflation. At that point you might be very happy that you locked at 8.55% for the life of your mortgage if the interest rates are let's say at 12-15%.


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