Top News

Mortgage rates sitting near historic lows

Mortgage rates are expected to remain near historic lows until the economy shows signs of recovery, says James Laird, co-founder of Ratehub.ca and president of CanWise Financial Mortgage Brokerage.

“The Bank of Canada’s target for the overnight rate is currently at a historic low of 0.25 percent. The Bank has reiterated in its announcements that it is at its lower bound and will maintain this rate as long as required,” says Laird. “For borrowers interested in getting a variable rate, prime rates are likely as low as they will get. However, there is still some room for lenders to offer further discounts to prime.

“Fixed rates are already close to their historic lows. There’s little room for rates to go down much further. There’s more room for them to move up.”

According to Ratehub.ca , the lowest five-year variable rate available in the last 10 years was 1.69 percent in 2017; today, the best five-year variable rate is 1.95 percent. The lowest five-year fixed rate available in the last 10 years was 2.09 percent in 2016; today, the best five-year fixed rate is 2.14 percent.

“With rates at historic lows, there is minimal room for any further cuts. If you have a renewal coming up, compare mortgage rates to make sure you are getting the best one. So long as your employment is secure and your income has not decreased, you should have no issues re-qualifying with a new provider at renewal time,” says Laird. “Once you are four months away from your renewal date, start comparing rates and apply for a rate hold. This holds the rate until your renewal date and protects you from rate increases. If rates go down, you can still get the lower rate.”

Copyright Postmedia Network Inc., 2020

Recent Stories