Interest rates are at historical lows. The Chartered Lenders’ prime variable rate is 2.50% and most offer a variable rate mortgage at prime plus .80% p.a. Their fixed mortgage rates are also extremely low, with many lenders now offering 4.15% fixed for five years and 5.25% fixed for 10 years (as at March 3, 2009)!
If you have a mortgage, I urge you to review your situation now. In many cases, an early renewal will result in significant net savings to you. Lenders have a legal and contractual right to charge you an interest penalty if you choose to break your mortgage contract, so you need to find out what your penalty would be. Most lenders charge you the greater of three months’ interest OR what they call IRD or Interest Rate Differential. You can determine your penalty by obtaining without charge from your lender what is usually called a ” mortgage discharge inquiry”. I can help you with this, should you prefer.
There are loads of lenders looking for your business. Their interest rates are fantastic. Your net gain in five or more years, net of any payout penalty, may astound you.