Lenders to continue competitive discounting tactics through summer months
June 4, 2014: Toronto, Ontario – There’s nothing lukewarm about lenders’ efforts to stay competitive in this spring’s mortgage market. Rate discounting battles have risen with the mercury, providing buyers with a slew of affordable options. Lenders big and small have cut their fixed mortgage rates to 2.99 per cent and below, while variable mortgage borrowers will continue to enjoy low central and Prime rates for some time to come.
Fixed Mortgage Rates: Unchanged
The fixed-mortgage-rate battle wages on, as brokers and big banks alike wade in with discounted offers. Bond yields, which have trended lower during the spring months, show no sign of reversal, leading RateSupermarket.ca’s panelists to anticipate low rates to linger in the coming weeks.
Variable Mortgage Rates: Unchanged
Canada’s long-lagging inflation rate made news this month, reported to have finally hit the 2 per cent benchmark decreed by the Bank of Canada. However such progress, while removing the possibility of a central rate cut, is not yet enough to warrant an increase to Canada’s cost of borrowing. As a result, variable mortgage rates are in for no change in the coming months.
This month’s panel members:
Ron Butler, Mortgage Broker, Verico Butler Mortgage
Will Dunning, Chief Economist, CAAMP; President, Will Dunning Inc.
Dan Eisner, MBA. AMP. President, True North Mortgage
- Dr. Ian Lee, Director of the MBA program at the Sprott School of Business and Chair of the MBA Committee
Kelvin Mangaroo, President, RateSupermarket.ca
This post is also available in: French