The Getting is Still Good - Comparing Canadian Mortgage Rates Between 2008 and 2009
The Getting is Still Good - Comparing Canadian Mortgage Rates Between 2008 and 2009
By [http://ezinearticles.com/?expert=Brian_B_King]Brian B King
Mortgage rates in Canada on average still seem to be sitting at a good low-point compared to their all-time highs. Although Canadian mortgage rates have seen some small jumps in the last month through decisions made by the financial institution decision makers, these jumps are small enough to not really be felt by many and they still have kept Canadian mortgage rates low.
When comparing the 2008 mortgage rates to the 2009 mortgage rates for most mortgage lending organizations such as banks and independent mortgagers in Canada it makes it evident how amazing it is regards to changes within one year. Or in other words it is amazing what a difference a simple year can make.
Although the global economy has found itself in a state of "financial crisis" in many aspects and facets, the Canadian economy has fared better if not the best amongst many of the nations affected by this slumping financial time (you can refer to it as a "recession" if you will). One of the benefits of this down time in the world's economy for Canadians has been the low mortgage rates they have been enjoying for over a year now.
These lows are not quite the sub-prime lending rates that helped to lead to the real estate crashed market and which helped to jump start if not catapult the "financial crisis".
However, when comparing the rates of 2008 which seemed to be hiked up in comparison to the couple years prior, 2009 rates seem to be quite favourable to anyone interested in buying a home, renewing a mortgage, mortgaging off a business, or for anyone looking to get this kind of support from Canadian financial institutions in 2009.
Looking back at 2008 and comparing the fixed-rate (closed-rate) mortgages to those present in the 2009 Canadian mortgage market would put a smile on any home-buyers face. It seems that waiting a year was a great decision on anyone's part. And those who could not wait and just had to buy in 2008 better have hoped they jumped into a variable-rate mortgage at the time; and now is a not a bad time to switch that into a closed-rate, if that is an option your lending company offers.
The rates mentioned below are based on average found rates throughout the country.
In January of 2008 3-year fixed-rate mortgages were at around 7.40%, while in 2009 in January these same mortgages had a rate of 5.75%, meaning a difference of 1.65 percentage points and saving a lot of dollars. The 5-year fixed rate, in January of both years was a comparable difference, sitting at 7.39% in 2008 and dropping to 5.79% in 2009. When comparing April 2008 and April 2009 the 3-year fixed-rates began at 7% and dropped to 4.15%, while the 5-year rates dropped from 6.99% to 5.25%.
Also rates in October 2008 went from 7.05% for a 3-year fixed-rate and 7.20% for a 5-year fixed-rate to their current values in October 2009 at around 4.35% for a 3-year fixed rate and 5.49% for a 5-year fixed rate.
When looking at most home buyers it seems that there is a large trend to select a 5-year fixed-rate mortgage. Playing it safe with numbers people feel comfortable with at the time. It seems like the best choice. Often it is a good choice. However, many mortgage experts suggest that the 3-year term is worth looking into as well because it offers a low rate plus it covers several years of a secure interest rate for home buyers. With options beyond that point to compare what the market is doing and so you don't get locked into that rate for "too long".
For more information on acquiring a [http://www.canadianmortgagesinc.ca/]Canadian mortgage, contact a [http://www.canadianmortgagesinc.ca/mortgage_brokers/toronto_mortgage_brokers.html]mortgage broker at Canadian Mortgages Inc.
Article Source: http://EzineArticles.com/?expert=Brian_B_King http://EzineArticles.com/?The-Getting-is-Still-Good---Comparing-Canadian-Mortgage-Rates-Between-2008-and-2009&id=3142858
By [http://ezinearticles.com/?expert=Brian_B_King]Brian B King
Mortgage rates in Canada on average still seem to be sitting at a good low-point compared to their all-time highs. Although Canadian mortgage rates have seen some small jumps in the last month through decisions made by the financial institution decision makers, these jumps are small enough to not really be felt by many and they still have kept Canadian mortgage rates low.
When comparing the 2008 mortgage rates to the 2009 mortgage rates for most mortgage lending organizations such as banks and independent mortgagers in Canada it makes it evident how amazing it is regards to changes within one year. Or in other words it is amazing what a difference a simple year can make.
Although the global economy has found itself in a state of "financial crisis" in many aspects and facets, the Canadian economy has fared better if not the best amongst many of the nations affected by this slumping financial time (you can refer to it as a "recession" if you will). One of the benefits of this down time in the world's economy for Canadians has been the low mortgage rates they have been enjoying for over a year now.
These lows are not quite the sub-prime lending rates that helped to lead to the real estate crashed market and which helped to jump start if not catapult the "financial crisis".
However, when comparing the rates of 2008 which seemed to be hiked up in comparison to the couple years prior, 2009 rates seem to be quite favourable to anyone interested in buying a home, renewing a mortgage, mortgaging off a business, or for anyone looking to get this kind of support from Canadian financial institutions in 2009.
Looking back at 2008 and comparing the fixed-rate (closed-rate) mortgages to those present in the 2009 Canadian mortgage market would put a smile on any home-buyers face. It seems that waiting a year was a great decision on anyone's part. And those who could not wait and just had to buy in 2008 better have hoped they jumped into a variable-rate mortgage at the time; and now is a not a bad time to switch that into a closed-rate, if that is an option your lending company offers.
The rates mentioned below are based on average found rates throughout the country.
In January of 2008 3-year fixed-rate mortgages were at around 7.40%, while in 2009 in January these same mortgages had a rate of 5.75%, meaning a difference of 1.65 percentage points and saving a lot of dollars. The 5-year fixed rate, in January of both years was a comparable difference, sitting at 7.39% in 2008 and dropping to 5.79% in 2009. When comparing April 2008 and April 2009 the 3-year fixed-rates began at 7% and dropped to 4.15%, while the 5-year rates dropped from 6.99% to 5.25%.
Also rates in October 2008 went from 7.05% for a 3-year fixed-rate and 7.20% for a 5-year fixed-rate to their current values in October 2009 at around 4.35% for a 3-year fixed rate and 5.49% for a 5-year fixed rate.
When looking at most home buyers it seems that there is a large trend to select a 5-year fixed-rate mortgage. Playing it safe with numbers people feel comfortable with at the time. It seems like the best choice. Often it is a good choice. However, many mortgage experts suggest that the 3-year term is worth looking into as well because it offers a low rate plus it covers several years of a secure interest rate for home buyers. With options beyond that point to compare what the market is doing and so you don't get locked into that rate for "too long".
For more information on acquiring a [http://www.canadianmortgagesinc.ca/]Canadian mortgage, contact a [http://www.canadianmortgagesinc.ca/mortgage_brokers/toronto_mortgage_brokers.html]mortgage broker at Canadian Mortgages Inc.
Article Source: http://EzineArticles.com/?expert=Brian_B_King http://EzineArticles.com/?The-Getting-is-Still-Good---Comparing-Canadian-Mortgage-Rates-Between-2008-and-2009&id=3142858
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