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.
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