Thread: Mortgages
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Old 20-05-2004, 15:29   #7
Jerrek
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Re: Mortgages

Well here you can pick whether you want a fixed rate over the amortization period, or whether you'll let it fluctuate. It usually is a little more costly to fix the interest rate because you get that extra security, and at this time I doubt interest rates will go down more.

The Bank of Canada pretty much follows what the Federal Reserve does. They lower interest rates, BoC does too. They raise it, BoC does that too.

In Canada, the bank rate is 2.25% and the prime rate is 3.25%. I think my parents have their mortgage fixed at prime - 1%, meaning, if interest rates go up, their interest rate will go up too.
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