The past month has yielded some excellent results for borrowers in continued historic low interest rates as well as strong competition in the mortgage marketplace. I will provide you with a breakdown of what is affecting rates and more info on some of the best mortgage products available today.
Bank Of Canada Lending Rates
First things first in understanding mortgages and what affects your mortgage – we have to find out where the Bank of Canada sits today. As of this writing we have a qualifying rate of 5.14%. This affects all mortgage qualification outside of the popular 5 year fixed mortgage. On the variable and line of credit mortgage products – the Bank of Canada’s prime rate is holding steady at 3.00%.
Best Fixed Mortgage Rates
As mentioned – if you are pursuing any fixed mortgage term less than 5 years – you will be required to utilize the 5.14% qualifying rate to see if you can afford the mortgage. This makes the 5 year fixed mortgage term that much more popular. As of this writing – there is available a five year fixed rate mortgage with an interest rate of 2.74%! The exciting part of this mortgage product is not only the interest rate but in addition it comes with full 20% prepayment privileges and a 120 day rate hold. This mortgage is only available by referral so please reach out to me to ensure you will qualify based on your credit and income.
Variable Mortgages Are Improving
The variable rate mortgage has taken a back seat in the last year as the economy began to improve. The reality is that there are still very real obstacles to a robust recovery and this causes the Bank of Canada to have to ensure interest rates stay low to try and stimulate the economy. Another factor is the discounts lenders provide off of the BOC’s prime rate of 3.00%. I have a lender who is offering a 5 year variable rate mortgage today with a discount of 0.45% off of the prime rate. Again as of this writing – you can access a five year variable rate mortgage with an interest rate of 2.55%! This is again a fully featured mortgage with 20% prepayment privileges and a 90 day rate hold. Keep in mind that with variable mortgages – you will need to qualify at the Bank of Canada’s rate of 5.14% to access this low rate mortgage product.
100 Percent Cash Back Mortgage Still Available
For those who are not content to sit idly by and watch their hard earned dollars go to pay the landlord’s mortgage – there is still available the cash back mortgage providing effectively 100% of your purchase price. This means that all you have to come up with to purchase a home is your closing costs. I have access to a lender today who is offering their cash back mortgage at 4.85%! The plus here is we have full 20% prepayment privileges and a 90 day rate hold. This is an incredible interest rate for a first time buyer to get themselves into a home and not have to wait until they have paid that much more toward someone else’s retirement.
Competition Benefits You
We are in the midst of a very competitive time of the mortgage calendar year and one not to overlook lightly. Even if your mortgage is not up for renewal today or you are putting off purchasing a home until you have more saved up – you will want to complete the exercise to ensure you are not losing out on these low rates. May is a great month to jump in before the kids are out of school and the summer is in full swing to do a spring cleaning of your financial house. Don’t forget your mortgage and remember my services are completely free up until you decide on a course of action – and in the majority of cases my compensation is paid to me by the lender we bring your business to. Fill out the form below or give me a call to determine how we can get you a super low rate mortgage that will work for you!