Should you buy fixed or open mortgage

Variable Rate 4.55 % 5.25 %
6 Month Closed 5.25 % 7.05 %
1 Year Open 9.35 % 9.40 %
1 Year Closed 4.99 % 7.25 %
2 Year 5.50 % 7.30 %
3 Year 5.39 % 7.30 %
4 Year 5.89 % 7.19 %
5 Year 5.39 % 7.29 %
7 Year 6.15 % 7.70 %
10 Year 6.25 % 8.05 %


Mortgage Bytes

Canadians were bitter when they heard that big banks might not follow the Bank of Canada and lower their prime rate . Big-BanksBut what about fixed rates? Author and mortgage expert Peter Kinch wonders why we aren't more angry about these rates. He says "banks have been raking it in for months and not passing the savings on to you." Kinch suggests fixed rates could be at least 3/4% lower than they are now based on costs of funds. In other words, he feels the banks are keeping fixed rates artificially high. Well, the big banks must be listening. They cut their 5-year posted rates by 0.10% last week. Tres generous! Kinch's story


Mortgage Broker Usage Up

Mortgage-Broker 33% of Canadian home buyers used mortgage brokers in 2007, according to CMHC's newly-released Mortgage Consumer Survey . That's up from 27% in 2006.

Just as importantly, mortgage brokers gained market share in all mortgage segments (1st-time buyers, repeat purchasers, renewers, and refinancers).

Its growth that will likely continue. More people seem to understand that it makes little sense to limit oneself to working with only one lender. People are now putting a greater value on fast objective advice, and would rather offload the mortgage research and paperwork to someone else.

CMHC's study included other broker-related findings as well:

* 95% would recommend their broker to a friend
* 85% were satisfied with the mortgage process
* Of those who used mortgage brokers, 92% felt their broker gave them the best deal. Of those who worked with lenders directly (going to a branch for example), the figure was lower at 82%.


Experts in Your Best Interest!
Banks work for bank, brokers work for you.