As our Panel noted in our latest Mortgage Rate Outlook Panel, the recent trend of fixed mortgage rate increases should be over for the time being, while George Hugh, Vice-President, Treasury, ING DIRECT, even thought that fixed rates could decline. We saw the first evidence of this today, as 2 brokers are now offering a 5 year fixed rate in Ontario at 3.99%, which is 0.30% lower than earlier in the week.
The 3.99% 5 year fixed rate is a discount rate being offered by Safebridge Financial Solutions and Verico Designer Mortgages. These are also sometimes called “no frills” mortgages as they offer lower rates but have less features then “full-featured” products, which contain all the bells and whistles, such as higher pre-payment options, but come at a higher price (ie. higher rate).
The 3.99% 5 year fixed has the following details:
- 30 day quick close
- Refinances and Purchases only
- No renewals or transfers
The discounted rates were expected to react more quickly to changing market conditions versus full-featured products until economic visibility becomes clearer, which should happen later this month with the release of the latest economic indicators.
You can compare these latest rate changes with the rest of the market here.
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