Thursday, June 21, 2012

Thurs Post #2: A tweet to ponder


A interesting tweet this afternoon from Canadian Mortgage Trends...
"If you go with a 2.99% 5yr rate, make sure you can afford payments at a 5%+ rate. Some lenders and insurers will check to ensure you can."

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4 comments:

  1. AnonymousJune 21, 2012 at 6:33 PM

    Is it because of the upcoming OSFI rule that says banks will qualify borrowers on 5-year fixed "benchmark" rate?

    Btw, is benchmark = posted = undiscounted?

    ReplyDelete
  2. CanAmericanJune 21, 2012 at 7:16 PM

    That must be it, discounted vs. posted rate. Posted is undiscounted. On face value that tweet is confusing.

    The interesting meta-point here is the concern that people getting mortgages are so tight that just a difference between discounted vs. posted rate can be the difference..Scary really.

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    Replies
    1. AnonymousJune 21, 2012 at 9:23 PM

      Second that CanAmerican. That is a little worrisome. Or is it that people are actually cheap at heart even while they are foolishly blowing the wad on a lifetimes worth of mortgage expenses at the top of the market.

      Got to make it up some where I suppose!

      Delete
  3. GGJune 22, 2012 at 6:36 AM

    I love the implication that they weren't checking before. This is what we call a teaser rate ARM down in the states.

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