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The Sophisticated Mortgage Strategy,
That If Implemented Correctly,
Could Benefit YOU By More Than $16,000
- The Alberta Prime Time TV Interview
June 1, 2010: The Bank of Canada raises the prime interest rate by 25 basis points. Is this the end of the world? In a rising interest rate environment what is the senior, yet simple, strategy you implement to pay yourself instead of the bank?
Watch this interview where Jefferson Humphries and I talk about:
- Are there more interest rate increases coming and when?
- Interest rates are rising. Knowing this, how can you take advantage of this information?
- Should you lock-in your mortgages or stay variable?
- What should you do if a) you are taking out a brand new mortgage or b) about 2 years into a current mortgage?
>> Click here to watch this interview on Alberta Prime Time
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View Comments to “The Sophisticated Mortgage Strategy, That If Implemented Correctly, Could Benefit YOU By More Than $16,000 – The Alberta Prime Time TV Interview”
Kevin says:
June 4, 2010 at 11:43 pm
Hi Don,
I’ve created a model that pretty much arrives at your $16,000 savings. Could you clarifying your assumptions for rate of increase of the variable rate (e.g. 25 basis points, every four months)? My challenge, I have a pre-approval at 3.79%. When I plug that into the model rather than the 4.3% for 5-yr fixed, the $16,000 benefit evaporates. It’s about break-even depending on the rate of increase. I totally agree with the approach when comparing current variable to current fixed. The pre-approval at 0.5% below current rates is the double-edged sword – nice option, but makes the decision more difficult.
Thanks!
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