Residential Mortgage Rates
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Whistler
Real Estate Co Ltd, #137- 4370 Lorimer Road, Whistler, BC V0N 1B4
Prime Rate = 3.00%
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TERM
(fixed)
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Bank
Rate
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BEST
Broker
Rate
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1 Year
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3.50
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2.89
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2 Year
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3.85
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3.09
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3 Year
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4.35
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3.19
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4 Year
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4.99
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3.19
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5 Year
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5.39
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3.49*
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7 Year
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6.35
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4.49
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10 Year
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6.75
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4.79
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15 Year
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N/A
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9.55
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18 Year
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N/A
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9.55
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Variable Rate
Mortgages
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Prime
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Prime - 0.20%
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One of the most confusing terms prospective new home buyers get mixed-up with is the difference between the mortgage term and the amortization period. Traditionally, a Canadian mortgage has a 5-year term with a 25-year amortization period.
Mortgage Term:
The mortgage term is the length of time you commit to the mortgage rate, term and lender. The term you chose affects the interest rate and generally shorter terms offer lower rates and longer terms, higher interest rates. Canadian lenders generally offer terms from 6 months to 10 years. One lender has the ability to offer a 25 year term but the interest rate on this length of term can be quite high.
Mortgage Amortization Period:
The mortgage amortization period is the length of time it will take you with normal payments to pay of the entire mortgage. For high-ratio mortgages (less than 20% down payment), the maximum amortization in Canada is 30-years. However, if you have the required 20% down payment or more to meet the requirements of a 'conventional' mortgage there are some lenders who will allow a 35-year amortization period. The longer the amortization = the more interest you'll pay over the life of the loan.
For more information on the differences, please visit our Facebook page.
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This entry was posted on October 14th, 2011
| Posted in Mortgage Information