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Interest Rates for Alberta Mortgage Applicants

 

I often receive calls asking me exactly how much better mortgage rates can a good mortgage broker negotiate compared to what the big banks offer their customers.

 

Here are the rates as of today 2/18/09 from the Royal Bank's website:

Term  ROYAL BANK Posted Rate             My Available Rate
 
1 Year 4.50%                                                       3.89%
 
2 Year 5.15%                                                       4.75%
3 Year 5.15%                                                       4.24%
4 Year 5.69%                                                       4.29%
 
5 Year 5.79%                                                       4.39%
 
7 Year 7.00%                                                       5.90%
 
10 Year 7.15%                                                        6.05%
   

 

 

         
     

 Consistently, the big banks interest rates are between a quarter to more then a full percentage point higher.

 

Is that a big deal?  YES!

 

How much more exactly does that mean the banks customer will pay?

 

If you had a typical $300k mortgage over 25 years on a property in Lethbridge, your payment will be $150/ month MORE if you have a bank mortgage that is only 1% higher.  On a 5 year mortgage at the above posted rates, the bank is a full 1.5% higher, which translates into $225/mont extra that YOU pay in interest by taking their higher rate instead of getting my best rate.

STOP!  Read that again.  The same mortgage amount, on the same house, over the same amortization period!  YOU pay $225 MORE each and every month you own that house for the next 25 years if you take an interest rate from one of the big banks that is 1.5% higher than what I may be able to get for you.

 

Now don't get me wrong, not everyone qualifies for the best rates, but YOU spend months searching for the right house, and how long searching for the best mortgage?  Do yourself and your family a favor, call me before you help contribute to the BILLIONS of dollars of profits that the big banks make off of Canadian consumers.

 

Robert May

 

 

 

                           
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                                   
                           

lethbridge real estate

lethbridge realtor

Robert W May is a Real Estate Broker in Lethbridge Alberta, having now been in the industry for over 23 years. . He was also a licensed Lethbridge mortgage broker and financing expert with Canada First Mortgage of Calgary Alberta for the past 10 years.  He is an industry leader always willing to help train and educate others in how to improve their business models for financial and personal benefit.




 

 

Comment balloon 5 commentsRobert May • February 18 2009 02:14AM

Comments

no spam at active rain

Posted by Robert May, Real estate consulting (Robert W May - Lethbridge Real Estate) over 9 years ago

Interest rates are great right now here as well.  We have to try to get Buyer's to realize what a good time is it to purchase.

Posted by Susan Jackowski, Lake Norman NC & Hudson Valley NY (Lake Norman NC) over 9 years ago

Hey Robert, I like what you've done with your blog.  What sort of advice would you give to people about going variable (with prime)?  My dad says he has been going variable for about 10 years and he has always paid less.  Also, I heard that the prime should be low for quite some time due to the recession and whatnot.  However, do you see the variable going higher than the fixed rate anytime soon?  

Posted by Brian Cowan over 9 years ago

Robert, I think 1/4 percent is a big deal and it demonstrates that buyers need to do their homework when shopping interest rates.

Posted by Barb Szabo, CRS, E-pro Realtor, Cleveland Ohio Homes (RE/MAX Trinity Brecksville Ohio) over 9 years ago

I agree completely Barb.  I talked to a fellow this week who had his renewal document and they were 3/4 a percent higher and he was thinking of signing them rather then go elsewhere just because he thought it would be easier?!?!?!

 

Of course it is easier.  If you want to get screwed out of an extra hundred bucks a month they are going to make that pretty easy for ya!?!!!?!!?

 

 

Posted by Robert May, Real estate consulting (Robert W May - Lethbridge Real Estate) over 9 years ago

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