Most major lenders have now dropped their 5 Year Posted Fixed Rates down to 5.39% this week!  This seems to be the trend over the last few weeks that lenders have been dropping their 5 Year Fixed Rates by approximately 10 basis points each week.  Could we see further rate reductions ahead?  Quite possibly!  Fixed rate mortgages are based on the bond market which still have strong spreads.  Let’s wait and see what happens next week.

The Bank of Canada Mortgage Qualification rate for clients who are putting down less than 20% of a down payment towards purchasing their home or refinancing above 80% of the value of the home is now 5.39%.  This will only apply for those clients who need high ratio financing for terms less than the 5 year closed (3 year, 4 year etc.) or a Variable Rate Mortgage.  If clients are looking for high ratio financing but are opting for the discounted 5 year closed term, clients will qualify based on the fully discounted mortgage rate.  We are currently offering our fully discounted 5 year fixed closed mortgage at 3.75%!

If you have a question about mortgage rates, please contact us for more information.