Most long term mortgage terms are for a max of 5 years. CIBC not only has a 7 year term, but right now, at the time of writing, it was still set close to 4.5%.
I’m not sure this is going to last very long and by the time you’re reading this, it may have already changed, but right now this is a great deal in the current market where long term mortgage rates are on the rise.
CIBC’s seven year product has perhaps been flying under the radar as there was a significant rate spread between it and the 3 year term rates on the market. Mortgage holders have been able to be short term focused for a long period of time and haven’t been paying a whole lot of attention to longer term rates.
But with the rate changes announced last week to longer term mortgage rates in Canada, its now time to start considering where rates are headed (which is up) and how to protect yourself for an extended period of time to longer term rate moves.
As I mentioned above, I’m not sure how long CIBC will keep the seven year rate where its at, but even a small move would still be worth considering if you believe in some of the economists predictions for more rate moves before the end of the year.
One thing to keep in mind as well is that you can always apply for a pre-approval and get the current rates held for you for the next 120 days, giving you ample time to see how things are going to unfold. As an independent mortgage broker, this is something I can arrange for you at zero cost.
I know I’m biased toward mortgage broker services and the value we provide our customers, but this is another excellent example of a rate offering that many people (even mortgage brokers) may not be aware of.
We went through a period over the last couple of years where there wasn’t much new with rates for extended periods of time, but that isn’t likely going to be the case for the foreseeable future which is all the more reason to give me a call and get on my mailing list so that you can take advantage of the different rate opportunities and strategies I will be telling my readers about in the coming weeks.
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel