Never seen in Canada: A 0.99% five-year mortgage like that of HSBC is unprecedented in the country.
- This is a completely different situation from the one that led mortgage interest rates to surpass 20% in the early 1980s.
Renegotiate or renew your mortgage is not however that advantageous, nuance James Laird, co-founder of the brokerage site RateHub.ca.
- “The penalty fees for breaking mortgages generally equate to the savings of a lower interest rate,” he told InfoBref in an interview.
- Also, the HSBC mortgage is variable rate: the rate could go up before its maturity.
“If you don’t need a mortgage, that’s no reason to get one,” advises James Laird. But if you need one, now is the best time to do it. ”
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