May 16, 2008: Updated Mortgage Rates

May 16th – 5 year rates as low as 5.15% (offered by ING for mortgages submitted prior to end of the month). Lenders are now advertising low rates, but most come with conditions like “must close in 30 days” or have reduced features. These are good offers, as long as they meet the requirements of the borrower. Macquarie is offering 4.99% on a five year fixed term for mortgages over $500,000.

RATES:

Variable:
Prime = 4.75% (Next announcement date is June 10th)
- Prime minus 0.75% (currently 4.15%) 5 year term
- Prime minus 1.75% (currently 3.00%) for the first 6 months, prime less 0.40% (currently 4.35%) for remainder of term

Fixed:
1yr – 4.90% 2yr - 5.24% 3yr - 5.25% **5yr - 5.39% ***7yr – 5.95% 10yr - 6.15%

** Lenders offering rates of 5.15% 5 year fixed term - - applications submitted in May
** Lenders offering rate of 5.19% on 5 year term – reduced prepayment privileges.
*** 5.29% available on 7 year fixed term - quick close 45 days.



Payment per $100,000 mortgage @ 5.39% fixed rate
- 25 year amortization: $604.00
- 30 year amortization: $557.20
- 35 year amortization: $525.96
- 40 year amortization: $504.28

Payment per $100,000 mortgage @ 4.15% variable rate
- 25 year amortization: $534.00
- 30 year amortization: $484.04
- 35 year amortization: $449.67
- 40 year amortization: $425.09

Remember, the longer the amortization period, the less you will pay off of the principal in a 5 year term!

Please feel free to call us for our recommended mortgage brokers.