Posted Jan 15 2009
Do not be tempted by low 5year fixed rate terms! Consider a variable rate term with the best rate you can negotiate with your lender! Of course, all the major lenders have stopped offering the Prime minus discount product of 2008 (for example it was possible to get Prime -.75% to Prime -1.00% in 2008)... but now the lenders have all colluded to STOP this great product.... can u imagine?!!! Little wonder the big banks see their profits rising!!!
Of course prime is now 3.5% and for those who followed my advice in this blog last year and took the Prime minus discount product of 2008, you are now paying a beautiful rate of 2.5% to 2.75% until your term expires!!! Hopefully many of you took the full 5 year term and this will take you to 2013 paying these beautiful rates!!!!!!!
Now, for 2009, here is my recommendation, take a 5year closed variable term for the lowest rate you can get a lender to offer you... N E G O T I A T E with them aggressively! Remember, prime will continue to fall given world market trends, and you will be the beneficiary!
If enough of you assert your negotiating powers, then we may be able to see the big lenders wake up and start to be fair and equitable with consumers! Remember: NEGOTIATE..... do not be tempted by fixed term products! And remeber to read all the fine print before you sign! Caveat Emptor!
For more info, and for real estate advice in general, contact Oliver Teekah , M.A.
Direct Line: 416 566 7653
Oliverteekah.com hotpropertybuy.com or www.hotpropertymississauga.com
Broker, Re/Max Realty Specialists Inc. 905 272 3434
Wednesday, January 14, 2009
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