Is your hard earned money working for YOU or your financial institution?

Is your hard earned money working for you or your Financial Institution?

With the onset of technology and immediate news feeds, Canadians, now more than ever are provided with a vast amount of information regarding mortgage rates. While running a simple GOOGLE news search this morning, there were no less than 823 news articles on the Bank of Canada’s decision to keep the overnight lending rate at 1.00%. What this means for most Canadians is simple, record low interest rates. Now more than ever Canadians need to take advantage of low mortgage rates, reduce their overall mortgage debt, and increase their net worth.

Major financial institutions want you to lock into to their 5 year fixed rates. We have demonstrated on previous blogs the primary reason; PURE PROFIT. Consider this, in April and May of 2010, most Financial Institutions were advertising heavily across Canada that Canadians needed lock into 5 year fixed mortgage rates. The 5 year fixed rates hovered in the 4.25% range. All the advertising emphasized that you should lock in now and that rates will be rising. Currently, in a time when mortgage rates where supposed to be much higher, the average 5 year fixed rate is hovering around 3.69%. Similar to gas prices, there no real rhyme or reason for this. Therefore if you are in the market for a mortgage or have a current interest rate that is higher than 4.00% you MUST speak to a Mortgage Professional. The advisory service provided by a mortgage professional is absolutely free and the benefits can be enormous. Saving thousands of dollars, shortening your amortization and dramatically reducing your debt load are all possible in this current rate environment. Having a mortgage professional negotiate on your behalf provides Canadians with numerous advantages.

Most economists are predicting that the overnight lending rate, which dictates the banks prime rate, will remain unchanged until at least mid 2011. Given the current economic conditions in most of the European nations, there is now some predication that rates might not go up until the fourth quarter of 2011. There is now some speculation from economists that a rate drop might be in the cards if the Canadian Dollar continues to gain momentum against the US dollar.

A variable or adjustable rate mortgage can provide Canadians a great recipe to aggressively pay down their mortgage with the appropriately designed home ownership strategy. With mortgage rates as low as 2.20%, Canadians should consider taking advantage of these historically low rates and shave years of their mortgage. When you are looking at your next mortgage statement, ask yourself these very simple questions; How hard is my hard earned money working for me? How hard is my hard earned money working for my Financial Institution? Reducing your mortgage debt and increasing your overall net worth is the best possible combination.

Don’t miss this amazing opportunity.