Borrowers could soon see lowest 5-year fixed rates in more than 2 years
Canada’s central bank just tossed borrowers another bone with a quarter-point rate cut. That has brought Canada’s benchmark prime rate down to 6.45 per cent, directly benefitting floating-rate borrowers.
Leading variable rates are now as low as 5.15 per cent (if default insured) at the likes of Nesto. You’ll shell out at least 45 basis points more (5.60 per cent) if your mortgage is uninsured.
As for home equity lines of credit, they now start with a “6” again. A slew of lenders dropped HELOC rates to 6.95 per cent, but you might be able to negotiate even less if you’re super well qualified.
The same forces pushing the Bank of Canada to cut rates are also helping fixed-rate borrowers. Fixed rates are benchmarked to bond market yields, which are currently tanking faster than the Liberal government’s reelection hopes.
One popular gauge of the price lenders pay for mortgage funds is Canada’s five-year government bond yield. As this is being written, the yield has sunk to a 17-month low.
As a result, we’re probably not far from seeing 3.99 per cent five-year fixed rates for the first time in more than two years — at least of the insured variety. That’s a welcomed departure from the 5.54 per cent peak we hit at this time last year.
The rates displayed below are updated by the end of each day and are sourced from the Canadian Mortgage Rate Survey produced by MortgageLogic.news. Postmedia and Imaginative. Online Inc., parent of MortgageLogic.news, are compensated by certain mortgage providers when you click on their links in the charts.
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