The typical discounted rate for a 5-year closed variable mortgage now seems to be prime + .60% (2.85% as of today).
Various discount lenders have gravitated to this number in the last week or so.
Most of the big banks, however, (besides Scotia) are still advertising prime + 0.80%. A capital markets consultant we spoke with finds that interesting because the big banks generally have the lowest cost of short-term capital right now.
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Last modified: April 29, 2014
Variable rates will keep getting better—1-years are the way to go!
Scotia is P+0.6 closed and P+0.8 open now.
I also think that the one year rate is the way to go now, hoping to take full benefit of Prime MINUS maybe….too optimistic???
Hi Adrian, Prime minus will be back. No one has any idea when, but it will be back… – rob
Is 3.65% good enough for 5 year fixed closed rate? Thanks.
Hi Birdie,
Mortgages entail more than just an interest rate. So that’s a tough one to answer.
You, or your mortgage professional, should compare all of that mortgage’s specific terms to the alternatives.
Cheers,
-rob
4 year closed for 3.5% or Prime+0.8% open variable- which is better?