Hello Home Buyers and Sellers –
“A quick review of my product mix shows me that nearly 70% of all Edmonton brokers are selecting a five year fixed.” – Street Capital Financial
Now, we all know that borrowers have been conditioned to ask “What’s your best 5 year fixed?” – if I only had a dollar for every time I’ve heard that in my career!
What can I do to get borrowers thinking differently? ‘Why a five year’? Do they realize the banks have programmed them to think that way as it’s historically the most profitable product for the lender? Homeowners, on average, go through a major life change every 3 years – that’s a move, a job change, a new child, a child in university, a marriage, divorce, downsize, upsize… you get the idea!
By understanding alternative products and terms, I can steer you away from potentially punishing pre-payment penalties and place you in product that’s likely to better fit your inevitable life changes! And to top it off 3 year rates on fixed and variable or 50/50 mortgages are generally better than those of a 5 year!!
Dont get me wrong – 5 year fixed rates are at an all time historical low, but is the length of the term right for you? Because if it isn’t you will be paying thousands in penalties to pay out the mortgage early.
5yr Fixed – 30day QuickClose – 3.09%
5yr Fixed – 90 Day Rate Hold – 3.34%
5yr Fixed – 120 Day Rate Hold – 3.59%
3yr Fixed – 120 day Rate Hold – 3.34%
3yr Variable – 90 day rate hold – 2.20%
*Rates are OAC, subject to change at any time