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.