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| Bank Rates |
Term |
Our Rates |
| 3.90% |
1 |
3.39% |
| 4.05% |
2 |
3.59% |
| 4.85% |
3 |
3.75% |
| 5.59% |
4 |
4.34% |
| 6.10% |
5 |
4.09% |
| 6.70% |
7 |
5.80 % |
| 6.80% |
10 |
5.80 % |
| Posted: 7/6/2010, OAC |
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Take advantage of the lowest interest rates in 30 years!
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The Adjustable Rate Mortgage is quickly becoming one of the most popular options for consumers. There is a tremendous spread between the prime interest rate and a fixed long term mortgage. This spread can be as much as 3% and with the average mortgage in Canada approaching $130,000, this difference in interest rates can be tremendous.
The adjustable rate mortgage is quite different than traditional mortgages in that long-term mortgages are priced according to Bond market, while the adjustable rate mortgage is priced in accordance with the prime interest rate.
The longer the term, the higher the interest rate. This is not always true but generally speaking it does hold true. By selecting a longer term mortgage you are agreeing to pay a higher interest rate for the term. It is similar to paying an insurance premium to guarantee the interest rate but the insurance premium is the higher rate.
An adjustable rate mortgage gives you total control. Your mortgage would renew every 3 months at a fixed interest rate. If you change your mind and decide to convert to a longer term, you would be guaranteed a minimum discount off the banks posted rates. This mortgage allows you to have the best of both worlds. Short term pricing with the ability to lock in your rates at any time. Don't be fooled by false advertising, the adjustable rate mortgage below is the best in the market.
• Maximum 95% LTV
• Semi-annual compounding
• Five year term delivered in automatically renewed three months fixed rates periods
• Prior to conversion open for repayment on payment of three months interest
• Monthly, weekly, or bi-weekly payments available
• 15% and 15% prepayment/payment increase
• Ability to convert to a 3, 4, or 5 year term at any time at a guaranteed discount
• The discount off Royal Bank Prime is guaranteed for the renewal periods
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