In a variable at Prime -.10 or higher?

Did you redo your mortgage in the last year or so? Did you choose a variable rate mortgage? Are you in at Prime -.10% or higher i.e. Prime +.20%?

Then it's definitely time to look at a full review of your mortgage. There's potential of HUGE savings in interest by simply doing nothing different than what you're doing right now.

Below is an example of an email I sent to a client not too long ago doing a standard yearly review of their mortgage. One of the many services incorporated for free when you choose me as your trusted mortgage adviser!

Just today I read an article by Yves St-Maurice, Desjardins’ Director and Deputy Chief Economist and one thing that really stood out was this comment - "We’ll likely see no further Bank of Canada rate hikes till spring, and probably no more US rate increases "before 2012..."

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"Looking back you are in a variable situation at Prime +.30% (3.05% today). In the last year the discounts off of prime have come down quite a bit. We’re looking at Prime -.70% now (2.05%). This is a full percentage point less than what you have now.

Seeing how just yesterday I read a report that the predictions on prime to raise in the next couple years has been dropped to about 1-2%, the thought of you locking in is probably not in your best interest long term. Today’s lock in rate at your lending institution on a five year is 3.99%, almost 2% higher.

Here’s what I propose you should do to take full maximum affect and pay down your mortgage much faster without no changes at all to what you’re doing today.

With the rate being a full 1% lower, the monthly payment would decrease by approx. $96/m. If you kept your mortgage payments at the exact same level you’re at now, you would decrease your overall amortization by 4.5 years! This is a huge interest savings. Now if you were to increase your payments by say $200/m, overall just an extra $100/m, your overall amortization will decrease by just over 8 years! Huge potential for savings.

The cost of doing this and breaking your mortgage is roughly $2,850. This will be recouped within 10 months.

Overall this could be very beneficial to you and your overall goals. And will guarantee to save you a large sum of interest overall, leaving far more money in your pocket."

Sounds pretty good!!

Call or email me for more information and to see if this is the right way to go for you. 604-786-9099 christos@bcmortgageinfo.ca