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What to Consider When Your Bank Comes Calling

August 13, 2013

MonsterMortgage.ca Mortgage Expert Kristian Harris talks about an issue that many Canadians face in today’s mortgage market – the urging of their bank or bank representative to lock in their historically low variable rate mortgages.

In today’s market, there are a number of home-owners still enjoying variable rate products of Prime – 0.75% (2.25%) or better; a rate that is no longer offered in the Canadian mortgage market. Often times home-owners will call us at MonsterMortgage.ca and will talk about how their bank has contacted them in regards to changing their 2.25% variable rate mortgage into a fixed rate mortgage at today’s fixed interest rates of 3.50% or higher.

Kristian discusses the banking institutions’ thinking behind this and asks the question, “Why didn’t my bank call me to offer a lower variable rate when I was carrying a higher fixed interest rate?”

Before making a move to lock in your variable interest rate mortgage, give your local mortgage professional a phone call and ask them to assess your mortgage situation for you. If you have any mortgage questions of your own, e-mail MonsterMortgage.ca directly at Info@MonsterMortgage.ca or leave your questions here.