RBC, BMO, and TD have all dropped their posted 5-year fixed rates to 5.25%.
RBC and BMO also lowered their advertised 5-year fixed “special offer” rates to 3.95%. (Usually, with a bit of negotiation, you can save a bit more.)
In the broker channel, 5-year fixed mortgages currently range from 3.59% for a no-frills mortgage to 3.89% for a full-featured mortgage with 120-day rate hold—with several options in between.
The above rates apply to well qualified borrowers with approved credit.
(Chart data courtesy of the Bank of Canada)
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Last modified: April 29, 2014
TD’s rate drops take effect tomorrow. If you are with them and considering refinancing get your IRD penalty quote today!
Any word from CIBC yet. They are the slowest to announce. Any word?
I did a quick scan and noticed Prospera Credit Union (BC) is offering a 5yr mortgage @ 3.79% – has anyone checked this one out?
Yah, but check out their penalty to break the contract early …12 months interest!!
https://www.prospera.ca/SharedContent/documents/MortgageComparison.pdf
Hey Rob-
Good point, but with rates this low I can’t see myself paying this out early… and 3.79 is still pretty decent for 5yr money.
Most people rarely stick with a mortgage term for more than 3 years.
Ya but you can port a 5 year to keep your rate if you move.
CIBC haas been 3.95% for a long time now, RBC/BMO/TD is actually following CIBC for a change.
Are you sure? CIBCs website says 4.38% as of right now.
http://www.cibc.com/ca/rates/index.html
Bank of Nova Scotia dropped its rate to 5.25% as well
My mortgage at RBC is up for early renewal tomorrow. Great timing on the rate drop.
I got a promise for 3.7 last week at TD. As I haven’t closed yet they said they would drop it further to reflect today’s drop.
Unsubstantiated rate claims should be completely ignored.
Show proof and let’s talk.
I’ve got 4 years remaining with TD Variable at P-0.8%. BoC says prime may stay flat until 2010, so that’s nice.
But in 2010, variable may start to rise, and fixed rates will likely be higher than they are today.
I’d like to model this to see if it makes sense to lock in now. Any suggestions as to how variable rate might increase from mid-2010 to 2013? My initial guess was 0.25% per quarter – does that seem reasonable to you all ?
I recently got 3.75 for 5 year fixed at BMO and RBC offered me the same.
You could have got better. There are 5-6 lenders advertising better rates.
I was told they would do better than the quoted 3.7 5year because of a drop coming through the next day (a few days ago at TD). When the drop came the next day they said their room to discount was reduced and best was 3.69. They dropped it then 1/100th for me :) I see 5.59 advertised on ratesupermarket.ca, anyone seen lower?
3.59% is a crappy no frills mortgage with no prepayments and tons of restrictions. Don’t bother.
If you got a variable at P-0.8 with 4 years remaining you should consider your self very lucky. If I were you I would not lock in any time soon.
Reasons: you have to remember that variable rates are based on Prime, which in turn is based on Bank of Canada over night rate (currently at 0.25). The bank said it will hold this rate for about a year. Fix rates are based on comparable bond rate, in your case a 4 year bond. Under normal cases prime and bond rates are moving in the same direction (up or down) at the same time. However, at times they may not move at the same time or at the same speed.
The way I see it Prime it very much at its lowest. With the government’s quatitative easing, the bond (4 or 5 year) may still go down a little purther.
In your situation, your break even point for your variable rate versus locking in now at 3.7% is when Prime moving to 4.5%. When would you see Prime at 4.5% again? My guess is at least 2.5 years from now, more likely 3. If get to pay 3 out of the 4 year at a lower rate why lock in now? If I wre you I would take my chances with the 4th year, or at least wait till prime starts moving up.
Good luck.
Can anyone let me know where to find the best 3 year open variable rate? BMO currently offers P+1. I’m sure some body can beat this rate. The banks are being greedy with the variables. They are guaranteed to make the spread. Used to be P-0.5 to P-1.
Prosper why would you go with a 3 year open when you can get a 5 year open at the same price?
Michael K, you’re right if 3 year and 5 year OPEN variables are at the same rate then I would go with the 5 year. However, the banks that I looked at offers the same rate for the 5 year but it is a 5 year CLOSED variable, which I don’t want. Can you tell me which bank offers P+1 for 5 year OPEN variable? Thanks.
Prospera’s 5 yr fixed is now 3.59%. I’m a member, their lenders are saying they’re swamped with applications.
Don’t they have a one year interest penalty if you want to get out of that mortgage?
There is also no prepayments, no pre-approvals, and they don’t hold your rate for more than 30 days.