Determining the Best Mortgage Strategy
The Best Mortgage Strategy?
If the Bank of Canada deems that its seven consecutive rates increases totaling 1.75% over the past
8½ months will be sufficient to tame inflationary pressures in the Canadian economy, the May 24,
2006 rate increase could mark the end of a tightening cycle. If this is indeed the case, consumers
deciding on a mortgage strategy may wish to explore the benefits of a variable-rate mortgage with a
mortgage consultant. Even if the Bank of Canada decides on further modest monetary tightening or
there is a plateau of several months in short-term mortgage rates, a variable-rate mortgage may still
be more effective in paying down the principal on one’s mortgage. While the most popular type of
mortgage in Canada is currently the five year fixed-rate mortgage, the carrying costs on a variable
mortgage have historically been less than on a fixed mortgage.
In an ever-shifting interest rate environment, the right mortgage strategy is crucial. Your Bank or Mortgage
Consultant can advise you on how to get the most from your mortgage.
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David Valente
www.davidvalente.com
Prudential Sussex Realty
Committed Service. Real Estate Sales.
Valente Real Estate North Vancouver. Real Estate West Vancouver. Real Estate Downtown Vancouver. Real Estate in the Lower Mainland. Buy and Sell Real Estate.