Best Rates


	Simply the most Effective Mortgage Product available to you! This variable mortgage is based on a 5 year term however only the first three years are closed. Years 4 and 5 are completely open with absolutely no pre payment penalty. As an introduction the first three months are set at PRIME less 2.51%. After this great initial rate your payments are based on PRIME less .40% for the remainder of the term.

Mortgage Alliance current rates

TERM

POSTED

OUR RATES*

6 Month

6.2%

1 Year

6.95%

4.9%

2 Year

5.24%

3 Year

5.05%

4 Year

6.85%

5.54%

5 Year

6.99%

5.34%

7 Year

7.4%

10 Year

7.75%

6.25%

Variable Rate

4.15%

Prime Rate

4.75%

	* Rates may vary provincially and are subject to change without notice.
	Rates Last Updated : May 2, 2008

Prime Lending Rate vs Fixed Mortgage Rates

Differences between the two:

Prime Lending Rate:

For most Canadian’s this is what our major bank offers us for a line of credit or a variable rate mortgage. When the bank of Canada lowers or increase their over night target rate most lending institutions will follow suit. This is just a target rate that the banks aren’t forced to follow. The Major banks and lenders in this Canada will almost always follow this rate change and increase their prime lending rate. In most cases the Bank of Canada rate is much lower than the prime rate major banks offer. To finalize the prime lending rate in Canada is set by the Finance Minister and his/her staff.

Fixed Mortgage Rates:

(3yr, 5yr etc): Funds for these products come from various sources. The majorities come from the Canadian Bond Market, life insurance funds and other investment funds. You can usually gauge an increase or decrease in fixed mortgage rates if you follow the Bond Market. Fluctuation in fixed mortgage rates has little or nothing to do with the Prime Lending Rate.

As you can see the Prime Lending Rate and Fixed Mortgage Rates have very little to do with each other. It is important to remember that changes in the Prime Lending Rate are usually indicative of the general state of the economy. Bonds rates and fixed mortgages usually follow these trends; this is where the general confusion started.