Mike Rampf & Shawn Anderson-

Vancouver Real Estate Marketing Done Right

Mike and Shawn have more than a combined fourteen years experience in the Vancouver Real Estate market. They specialize in selling houses, condominiums, land, townhouses, and investment properties in Vancouver and the surrounding area. Both Mike and Shawn have UBC Commerce Degrees and as a result are able to provide an unparalleled range of real estate services. Mike and Shawn's team has sold hundreds of homes at present; last year the team sold over one home per week. Please read below for some of Mike and Shawn's Vancouver Real Estate Blogs as well as about some of their other interests.

Blog by Rampf-Anderson Real Estate Group

<< back to article list

  • +1
Some mortgage tips

Mortgage Rates: Fixed or Floating

Wayne Schmitz sent me this email and I found it very interesting. Kind of relates to my tips for buyers and how to save your money.

October 11th, 2006

A friend of mine asked me if he should get a fixed rate or floating rate mortgage. When we purchased our house about four years ago, we opted for a five-year, fixed-rate mortgage and in the past four years, the variable, below-prime mortgage rate has never been above our fixed rate of 5.25%. The Bank of Canada is now holding interest rates steady and the consensus opinion is that the Bank will cut interest rates in 2007. In our case, we could have saved a bundle on interest costs if we had opted for the variable rate mortgage.
Prof. Moshe Milevsky, a Professor of Finance at York University has done extensive research on this topic and has published an easy-to-read paper titled Mortgage Financing: Floating Your Way to Prosperity. He analyzed interest rate data from 1950 to 2000 and found that Canadians would have been better off borrowing at the prime rate versus the 5-year rate 88.6% of the time.
Prof. Milevsky revisited his original article (Mortgage Financing: Should You Still Float? Four Answers) in 2004 when interest rates were at historical lows and offers this advice:
The decision of whether to go long (fixed) or short (floating) should depend on your tolerance for risk as well as your ability to withstand increases in mortgage payments. You can always expect a financial reward for going with the float, although the precise magnitude will ebb and flow depending on the economic environment.


Thanks Wayne.