Good Morning,
Great news for clients on the variable rate mortgage, as prime was reduced to 3/4 of a percent from the current 1% . Should the banks choose to follow this adjustment (which is likely however doesn’t always follow suit) bank prime shall be reduced to 2.75% from 3% and you will see a small payment reduction generally within a month or so on your variable rate mortgage or line of credit. For a variable rate mortgage holder this could mean a reduction in the minimun payment due approx $13.00 per $100,000.00 carried in mortgage on average.
Our team anticipated a reduction and when advising clients about locking in with all the media reports as of late we told them to hold off, and for good reason as you can see. The benefit you receive when working with a professional that is on the consumers side.
Should you have any questions, require a rate hold for you or someone you care about, or ensure you have the mortgage to result in the most savings please email us today at acalla@dominionlending.ca or call 604-802-3983 for us to help personally. This morning’s press release is linked below, along with another article of note this morning
Have a good week.
http://www.bankofcanada.ca/2015/01/fad-press-release-2015-01-21/
Angela Calla, AMP
DLC-Angela Calla
604-802-3983