For those that are shopping for a new house, or looking to do a refinance (or even just a simple mortgage renewal), rates and numbers are an important part of the mortgage equation. When rates change even the slightest of percentage points, it could cost or save you thousands of dollars. Every once in a while, here on the Mortgage Monday posts, I’ll update you on what’s going on in the world of mortgage rates. If this kind of stuff doesn’t really interest you, I won’t be offended if you just skim through it – I’ll try to make it as painless as possible. 😉
- The Bank of Canada interest rate continues to be stuck at 1.00%. The next meeting is scheduled for March 6th, 2013, but forecasters are now predicting this will stay at 1% for the foreseeable future.
- The Bank of Canada prime lending rate is also holding steady at 3.00%. It has also been holding steady since Fall 2010 – if the bank rate goes up, the prime lending rate will follow. We probably won’t see this start to move up well into 2013 or even 2014.
- The qualifying rate (the rate you would need to qualify at for a variable mortgage) for a 5-year mortgage is still at 5.24% (its been holding steady there since June 2012), though ot many folks are getting into a variable mortgage these days with fixed rates being so low.
- The current best variable rate (can change on a daily basis) is in the prime-0.35% (2.65%) ballpark, though many lenders are still currently offering ‘prime’ as their variable rate.
- The current best 5-year fixed mortgage rate (changes daily) hasn’t really moved around much and is still in the area of 2.99%-3.09%, though it looks like rates are starting to move a little higher. Again, always contact your mortgage broker for current best rates for your situation (and as we’ve talked about previously, The Best Mortgage Rate is Not Always the Best Option). Be careful when looking at some of the heavily discounted rates – many of them are considered “no-frills” mortgages and can come with restrictive options which could end up costing you $1,000’s.
- The “hot term” in Canada these days continues to be full-featured, 10-year fixed mortgage with rates as low as 3.79% (check out my posts from last year on the 10-Year Mortgage Below 4% and Should You Consider a 10-Year Mortgage?). If you want to lock in for a decade and record-low rates, definitely take a look at locking in for 10 years at less than 4%. I had more clients moving into 10-year terms than any other term in the last quater of 2012.
If you’ve been following along with my rate updates, they have been very repetitive for the past 6-8 months – very few of the numbers have changed since mid-2012. While I’m happy to provide an update on what’s going on as rates, if you’re interested on getting personalized mortgage advice, speak to your favorite mortgage broker who can help you decide the best rates and options for you.
