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. As has been the case pretty much since we started these Mortgage Monday Rate Updates, there hasn’t been a tonne of movement in the world of mortgage rates.
- The Bank of Canada interest rate continues to be stuck at 1.00%. The next meeting is at the end of May, but indications are it will continue to stay where it is for a while yet.
- 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 5.14% (recently down from 5.24%). That being said, there are still not too many folks getting into a variable mortgage these days with fixed rates continuing to be so low.
- The current best variable rate (can change on a daily basis) is in the prime-0.40% (2.60%) ballpark, though many lenders are still currently offering ‘prime’ as their variable rate.
- The current best 5-year fixed mortgage rate (this can change daily) continues to hang out in the 2.79%-2.99% range, depending on qualifications and options. 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 thousands.
- While the “hot term” in Canada these days may be moving away from the 10-year and back toward the more common 5-year term, the full-featured, 10-year fixed mortgage continues to be popular with rates as low as 3.69% (check out my posts from last year on the 10-Year Mortgage Below 4% and Should You Consider a 10-Year Mortgage?). Based on the history of lending rates, locking in for 10 years at well-below 4%, or 5 years for less than 3% is nothing short of fantastic.
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.
