Whether you like it or not, stats and numbers are a part of the world of mortgages. 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 is holding steady at 1.00%. Doesn’t look like this will be changing any time soon. The next meeting date is March 8th, 2012.
- The Bank of Canada prime lending rate is also holding steady at 3.00%. It has also been holding steady since Fall 2010 – I also wouldn’t be surprised if we see ‘prime’ at 3% for quite a while still (the next meeting date is March 9th, 2012).
- The qualifying rate (the rate you would need to qualify at for a variable mortgage) for a 5-year mortgage has dropped from 5.29% down to 5.14%. This is low as it’s been in, well, decades (though it was down as low as 5.19% as recently as September 2011).
- The current best variable rate (changes daily) is still in the prime-0.2% (2.8%) ballpark, though many lenders currently are offering ‘prime’ as their variable rate. With the loss of “discounted” variable rates, the majority of mortgage-seekers are opting for fixed rates.
- The current best 5-year fixed mortgage rate (changes daily) is still hovering around the 3.19% – 3.39% range – again, always contact your mortgage broker for current best rates for your situation.
- The new “hot term” in Canada these days in the 10-year fixed mortgage (changes daily), with rates as low as around 4% (though watch out for the restrictions on these heavily discounted rates – check out my post from a couple of weeks ago on the 10-Year Mortgage Below 4%).
As noted above, some of these numbers change monthly, where as some change daily. 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.
