RBC and BMO are chopping fixed rates in a mad dash for market share.
As of today we’re seeing deals like 4.79% for a 4-year and 4.99% for a 5-year. We’re hearing rumours of even lower rates from bank road reps.
It may soon become all-out warfare in the rate market. Thus far, however, non-bank lenders and the other “big-5” banks are nowhere close on four and five-year terms. (That will probably change soon)
Of course, for solid applicants, there are a few other excellent deals to be had as well–most notably:
- 1-year fixed’s at 4.35%
- Open variable HELOCs at 4.00% (the better choice for most well-qualified borrowers)
A lot of people are currently choosing these options in order to ride down rates for the next 12 months. This includes people who want a 5-year fixed, but think rates are coming down further. Put another way, there are a lot of folks out there who don’t want to paint themselves into a corner by locking in today. We’re not big proponents of market timing, but it is true that most economists are predicting a decline in rates for the foreseeable future.
In any event, as we always preach, if you’re in the market for a mortgage, find a mortgage planner who:
- Shops all lenders on your behalf, including lenders without broker channels; and,
- Focuses not just on today’s rates, but on your overall financial strategy.
This applies now more than ever.
Last modified: April 29, 2014
TD is chopping the rates tomorrow. I think they do the 1 year at 4.35% as well.
Mike S,
You can definitely get 1 year @ 4.35% from TD. Ask any broker and you will get it!
Awesome advice and awesome site…Do you guys thing Scotia will drop soon?
Nice site, currently shopping with a broker and RBC. I need to renew at the end of January, how long can I wait before I start the paperwork (i.e. commit to an offer?) Thanks
Spudman, call a mortgage planner like Rob.
Hi Spudman,
It depends on the lender and product you pick. The earlier the better. If you need more time, however, you can often tell your lender to simply renew you into a fully open mortgage with no penalties. The rate may be a little higher but it’s a way to extend your decision period a bit.
Hi Herb,
Thanks for the plug. There are a lot of great mortgage planners out there but sometimes it’s hard to find one you really click with. If you don’t want to work by phone, fax, and email (that’s how we work) then here’s a link that lets you search for mortgage planners by radius to your postal code. Come to think of it, we should do a story on this. It’s a relatively new feature on CAAMP’s website.
Anyways, just make sure you do lots of homework on whomever you entrust with funding your biggest asset.
Cheers,
Rob
Check out http://www.Klickit.ca to serch for a mortgage professional that works in your area.
I have to make my decision tomorrow. Its either a 4.99% for a 5 yr fixed or an open variable for prime + 0.5. Any advice?
Where are you finding 4.99% for 5 year fixed rates? I’m still waiting for TD to come down with there fixed rates. Maybe I need to go to other banks.
Hi Al,
There are open variable all-in-one products at better rates. Have you considered those?
Cora,
Try calling a mortgage planner that deals with all lenders. Or feel free to shoot me an email and I’ll give you the list of lenders I know of with 4.99% or better.
Cheers,
Rob
I got 4.99% for a 5yr fixed at BMO
what do you think about 5years open variable at 5.2%?
Hi Zorglub, It depends on your situation. Generally speaking, there are better open deals available right now. What I’d suggest would be to call a mortgage professional for a comparison of the terms out there. A well qualified applicant will definitely find options under 5% on an open variable. – Rob
I have a few questions I hope hyou can help me with.
1) Which banks are offering 4.99% or a variable rate at prime? National Bank did go to 4% today unfortunately.
2) Besides National Bank, is anybody else offering a fully open line of credit at decent rates?
I just found your site and love it.
Thanks.
Hi Steve,
Thanks for the very nice feedback.
I think you meant that National Banks has gone to 5% on their All-in-One, correct? If so, that is true.
For rate quotes the best bet is to contact a good mortgage professional for a comparison of the options. Alternatively, feel free to shoot an email over to:
info [at] canadianmortgagetrends [dot] com