When Chris and I first bought our house in 2001 we decided to take out a variable interest rate mortgage. I have to say that it’s worked out well for us!
When we first got our house interest rates were at the lowest that they’d been in years, perhaps decades and we locked in for 6 months at something like 2% below prime and then after that it was guaranteed to be half a percent below prime.
Our luck held, probably due to poor economic times throughout this decade and the prime interest rate has stayed relatively low.
Now with the possible economic recession in the US and our own Canadian economy starting to go down the Bank of Canada has lowered the prime interest rate at least three times in the last few weeks. That of course has resulted in our mortgage company lowering our interest rate as well. We’ve received three letters from our Mortgage company in the last two weeks and with each letter our bi-weekly mortgage payments have dropped.
In all our mortgage payments have dropped about $50 a month. That’s not a huge decrease, but it will help.
Have you been experiencing the same thing? Has your mortgage company notified you that your mortgage payments will decrease slightly in the near future? Our rate drop doesn’t take effect until December and unless I’m way off I think the prime rate might drop again!
That is really good news. Our Mortgage is up next week and I am seriously looking at the variable rates right now. I’m hoping to save at least $100 a month.
have a happy halloween!
We have a variable rate mortgage, but it renews just once a year. It will renew again in April, and I am hoping it will lower. It did last April.
An Arkie’s Musings
I bought my house in 2006. I don’t really like interest so I arranged the soft cash arrangement with the developer. It means I have to pay exactly as the price but I can pay them in the period of 2 years. So I don’t have to be worried about mortgage I guess. But it’s decreasing now. It’s good thing 🙂
unlike in asia region, in this economy situation, our rate mortgage raised, and now about 15 % per year.
My rates climbed up and up and up. Now they say they will lower them, since a lot of people just can’t keep up the price. Let’s hope it’s true, when we started our mortgage it was just one third of our income, now it’s bordering the half and it’s no fun!
WOW ! this a very good news that your mortgage is going lower and lower. Enjoy the lucky time. Best of luck.
We ave rates creeping in at under 2% here in Spain as the Euribor continues to fall.
The fall in mortgage repyamnets are most welcome for many property owners here!