Good things come to those who wait – and those timing the mortgage market are in for savings, as fixed mortgage rates plummet below the three per cent barrier once again.
Lenders have cut 5-year fixed mortgage rates to 2.99 per cent, not offered in Canada since August of last year. The rate, which will initially be available in Ontario, Alberta and British Columbia, will be a full featured mortgage product complete with prepayment options.
Consumers Poised To Save Big
What would you do with an extra $100 each month? Those are the savings Canadian home buyers can expect when financing their mortgage at 2.99 per cent, compared to the lowest big bank five-year fixed offering of 3.49 per cent.
– Canadians will pay $1,787 per month
– Canadians will save $98 per month
– Canadians will save $1,176 per year
– Canadians will save $29,400 over the course of a 25-year mortgage
Kelvin Mangaroo, President of RateSupermarket.ca, says lenders are taking their cue from the current economic climate. Investors have flocked back to government of Canada bonds due to fluctuations in the global economy, pushing yields to some of the lowest levels of the new year.
“Changes to the global economic landscape have created a favourable interest rate environment for Canadian consumers,” he says. “Those currently on the market for a new home have much to gain as such competitive rates re-emerge in the marketplace.”
Want to see what you could save with this rate? Check out our Mortgage Calculator to compare your monthly payments or