 鲜花( 65)  鸡蛋( 0)
|
Fri Oct 23, 5:12 PM% y" J J2 E# d2 \! G1 D* K0 `0 c
By The Canadian Press
" b" t( u* V( E8 i: q8 K$ k n: ~. v# H9 s" R. O5 t- y% l5 P* S& S
TORONTO - Fixed mortgage rates may help you feel secure in your budgeting, but the Bank of Montreal (TSX: BMO.TO) says the more volatile variable rate mortgages will save you money in the long run.
# Z. f% D+ g4 i/ [; l# I6 {5 Y# ^, b: D7 v8 ?* ?# x" N
The bank put out a report Friday showing that, over the past 30 years, variable-rate mortgages have been more cost-effective about 82 per cent of the time. That may come as a surprise to some after studies have shown many Canadians prefer a fixed-rate mortgage.
0 I2 r' i* m& z \
/ e# H$ n4 g% Y% w( GA fixed rate locks the borrower into a set interest rate for a certain period of time. 7 ^* N; l: v5 ?# M8 z! \8 }
" j1 l1 M2 b/ f& t- v! MThat gives many borrowers peace of mind knowing how much money to set aside each month for their mortgage payment. ) ]; d8 ^; h5 H- u0 y* B2 P
$ w& A5 v# ?+ X5 Q1 v. IVariable rates change along with interest-rate moves. 5 K( p1 V( K6 S9 [8 @% j3 O
( T; }# t; k7 a2 U9 T% y+ }
BMO said the Bank of Canada's overnight lending rate is at its lowest possible point now, which could mean there are fewer benefits to a variable rate in the foreseeable future.
3 L" H& D7 y9 u0 ?! u) Y! q# K3 ?8 G. A5 Q: J( o0 S4 M) l4 o
BMO highlighted two historical periods when fixed rates were considered beneficial - in the late 1970s and late 1980s - and both were just before interest rates started rising again. , c1 w5 u; ?" v: A; e$ P3 W
2 n3 `7 ?6 h& b, o9 A
The bank added that the current interest environment is similar to both of these periods.
( \: u& J: c; R: t$ t9 u" ^. n. r" H# Z2 h, I- ^
"Short-term rates are at extreme lows and pressure is likely to build for higher rates in the year ahead," said deputy chief economist Doug Porter in the report.
" S0 q5 t2 s$ W$ _$ L5 S5 x9 k+ O% R8 p. f2 r% r f; P! n- V
"The question of whether to lock in to a longer-term fixed mortgage rate or stay in a variable rate has become an increasingly complex and important issue."
! m6 k2 X' a0 o6 H3 g2 c" ?, c- ?& F) |3 i1 U" H! d
Canada has been in a long-term declining rate environment since the early 1980s, the bank suggested. " G% j: [/ e4 I( x
3 ^+ j! l' `. m7 B$ s6 p1 B: @' O
As a result, the spread between five-year fixed mortgages and variable mortgages has been pushed wider in recent years, and is now near an all-time high. |
|
狗仔卡
发表于 2009-10-26 06:48
提升卡
置顶卡
沉默卡
喧嚣卡
变色卡
显身卡
