The Bank of Canada’s rate announcement is tomorrow and many of the expert expect the Federal Bank to hold their target for the overnight rate steady at 0.25%. This means variable rates should, in theory, remain steady for the next little while. However, we’ve seen some variable rates come down to as low as Prime – 0.10% for a 4 year variable closed rate, with a 45 day quick close. This is the first variable rate offered below prime that we’ve seen for months and is great news for mortgage shoppers. Could this be a sign of confidence in an economic recovery from the banks? Or simply that inter bank lending is returning to normal and banks no longer need to hoarde cash.
|
|
5-year variable | ||
|
Company |
10-Sep-09 |
03-Sep-09 |
Difference |
|
Best broker |
2.25% |
2.40% |
-0.15% |
|
BMO |
2.55% |
2.65% |
-0.10% |
|
CIBC |
2.65% |
2.65% |
0.00% |
|
HSBC |
2.60% |
2.70% |
-0.10% |
|
ICICI |
3.50% |
3.50% |
0.00% |
|
ING |
2.55% |
2.55% |
0.00% |
|
RBC |
2.55% |
2.65% |
-0.10% |
|
Scotia |
2.45% |
2.65% |
-0.20% |
|
TD |
2.55% |
2.45% |
0.10% |
We’ve also seen fixed mortgage rates come down in the past week as shown below. This is mainly attributable to the fact that the Government of Canada 5 year bond price has increased over the past week by 2.80%, reducing the yield, and enabling banks to drop 5 year rates. After speaking to a few brokers in the last day or so, they believe rates will come off a bit more in the near future. Again, it’s difficult to time these things, and if you do need a mortgage soon, it’s probably best to look into it now and get pre-approved, rather than trying to time the absolute bottom of the market.
You can keep track of the latest mortgage rates here, or through our Ratewatch service, which will send you a quick update whenever the best mortgage rates on the site change.
|
|
5-year fixed rates | ||
|
Company |
10-Sep-09 |
03-Sep-09 |
Difference |
|
Best broker |
3.79% |
3.79% |
0.00% |
|
BMO |
5.49% |
5.85% |
-0.36% |
|
CIBC |
5.85% |
5.85% |
0.00% |
|
HSBC |
5.79% |
5.79% |
0.00% |
|
ICICI |
5.85% |
5.85% |
0.00% |
|
ING |
4.19% |
4.19% |
0.00% |
|
RBC |
5.49% |
5.79% |
-0.30% |
|
Scotia |
5.49% |
5.85% |
-0.36% |
|
TD |
5.55% |
5.85% |
-0.30% |
We’ll look out for the Bank of Canada announcement tomorrow and post the results as soon as we get them.
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