Peter Kinch is a great mortgage broker, and I use one of his brokers. He’s also a frequent speaker on various radio and tv programs. Here’s a transcript from News 1130 last Friday (June 5th) between Peter Kinch and Russell Byth last Vancouver.
Russ:
The Bank of Canada is standing pat on rates keeping the Prime rate at 2.25%, but the banks have been increasing their long-term rates this week. On the line with me is the #1 Mortgage Broker in Canada, as ranked by Canadian Mortgage Professional magazine, Peter Kinch. Pete, congratulations first of all, that’s quite an honour.
Peter:
Thanks Russ, it’s certainly something I couldn’t have done without a strong team supporting me.
Russ:
Good stuff, now down to business… it can be confusing when we see rates going up one day and then hearing that there’s no change the next.
Peter:
Exactly Russ, and it comes right down to an issue that confuses a lot of consumers – there are two types of rates: Fixed and Variable. When you hear the Bank of Canada talk about not changing rates – they are referring to the Prime or Variable rate – and we don’t expect any movement there for at least a year.
Russ:
But the long term rates are not controlled by the Central Bank?
Peter:
No, they are governed by the bond yields and can be constantly fluctuating based on market conditions. Right now we have a rising Loonie, and fear of pending inflation causing the bond yields to rise – which in turn has caused a jump in the long-term rates. So it’s important not to make assumptions on your long-term rates, based on announcements by the Bank of Canada.
Russ:
Thanks Pete – We have to be sure not to confuse the two – In the Business Center, I’m Russell Byth.
