This rate is worth it’s own blog post!
Currently on RateSupermarket.ca (Monday November 21, 2011) you can get a 5 year fixed mortgage rate for only 2.99%. Yes you heard right, 2.99%! The offer is only available to Ontario residents and comes with a 21 day rate hold. It also allows for 20% annual lump sum payments and a 20% increase on your monthly payments – two features that allow you to pay off your mortgage faster and save loads on interest.
5 year bond yields, which are closely aligned to the 5 year fixed mortgage rates, have dropped over 40 basis points since the end of October. With fixed mortgage rates under 3%, this makes variable mortgage rates look less attractive. Why not pay a few extra basis points for the security of knowing what your monthly mortgage payments will be for the next 5 years?
It looks like Dr. Ian Lee had the right idea when he submitted his mortgage rate outlook for November!