We’ve been doing these Mortgage Monday Rate Updates for going on two years now, and haven’t had much movement the entire time… but finally, there’s actually some movement to report. 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.
- The Bank of Canada interest rate continues to be stuck at 1.00%. The next meeting is in a couple of days, 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 until late 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%. With fixed rates starting to rise again, Canadians may again look to the variable rate mortgage for long-term savings.
- The current best variable rate (can change on a daily basis) is still in the prime-0.40% (2.60%) ballpark, though many lenders are currently offering in and around ‘prime’ as their variable rate.
- The current best 5-year fixed mortgage rate (this can change daily) has started to creep upwards over the past month and is now in the 3.29%-3.59% range (for a full-featured mortgage, and closer to 3% for a limited, no-frills mortgage), depending on qualifications and options. Again, always contact your mortgage broker for current best rates and options for your situation (and as we’ve talked about previously, The Best Mortgage Rate is Not Always the Best Option).
- 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 continuing to stay below 4% (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 below 4%, or 5 years for around 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 favourite mortgage broker who can help you decide the best rates and options for you.
