A handful of mortgage lenders started trimming the discount they offer on variable rate mortgage last week. They have gone from prime -.75% to prime -.65% and in some cases prime -.50%. So far four out the of the top ten mortgage brokers lenders have decreased rates. The reason behind the tighten in the discount rate is the spreads that the lenders make on the product. The product is not as profitable to the lenders as it once was.
If you have a mortgage coming up for renewal, need to refinance or plan on purchasing a new property soon you should have a preapproval put in place to lock in your discount spread on the variable rate product.