On 6/5/2014 12:48 PM, Tony Hwang wrote:
Frank wrote:
On 6/4/2014 4:54 PM, Robert Green wrote:
"Frank" wrote in message
...
On 6/4/2014 2:03 PM, BurfordTJustice wrote:

"HomeGuy" Home@Guy.com wrote in message
...

But yes, just recently some financial instututions here in Canada
began
offering 1.99% mortgages (3 year fixed term I think).
--
Please provide a picture of the hunting shack you live in at 1.99
for 3 years....LOL!!


Probably a balloon mortgage where all outstanding is then due and you
are forced to refinance.

http://business.financialpost.com/20...e-rate-canada/



says:

Investors Group rolls out 1.99% variable rate mortgage
If you thought mortgage rates could not go any lower, you were wrong.

Investors Group is rocking the mortgage world with what appears to be
the
deepest discount in Canadian history on a floating rate loan, offering a
deal that takes an effective mortgage rate down to 1.99%.

The company is now offering 101 basis points or 1.01 percentage points
off
its prime rate of 3% for a variable rate mortgage. Consumers can get the
deal for a 36-month term which is shorter than the length offered by
some of
the major banks on the deep discounted five-year fixed rate mortgage
which
has dropped to around 3% - a controversial level that once drew the
wrath of
the department of finance.

"We haven't seen a rate like this from a lender," said Rob McLister,
founder
of www.ratespy.com., referring to the steep discount.

The offer from Investors Group is not available from brokers and is
coming
from the company's own sources, designed to make a major splash in the
marketplace.

--

Bobby G.


I don't know details in Canada but do know in the US that to refinance,
you pay a lot of refinance charges not related to the mortgage
percentage. These costs can be considerable and may be a major source
of profits to the mortgage holder.

Hi,
In U.S. still your mortgage intewreste payment is tax deductible?
Never up here. Refinancing has no fees or charges unless we switch lender.

Others have correctly stated that it is a tax deduction, i.e. not
taxable. Tax deductions for other interest payments were done away with
years ago. I believe one of my sons took out a homeowners loan to pay
off his college loans and increased his home mortgage to get the deduction.