5-year hybrid mortgages built for topsy-turvy economic times

By
Millicent Wong
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Don't look now, but core inflation is rising again — Not just in Canada, but also in the USA. Some of this is expected due to a statistical quirk called base effects, but much of it could be due to inflation bottoming out or at least slowing significantly.

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What happens next depends in part on the impact of US President-elect Donald Trump's tariff threat. A 25 percent tariff on Canada would be a blow to Americans given how tied their economy is to ours, but it could send Canada into an economic meltdown. Trump effects aside, consumer spending and employment in Canada are not as bad as economists expected mid-year.

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This potential economic roller coaster requires a hedged approach to mortgage lending. A five-year hybrid mortgage – partly fixed, partly variable – is designed for this purpose. Most lenders don't offer competitive hybrid mortgages, but you'll find a few gems with combined advertised interest rates that start at around 4.75.

For the crème-de-la-crème hybrid interest rates, turn to major banks like the Bank of Nova Scotia. The best way to get one is to negotiate the lowest five-year fixed and variable interest rates separately. To do this, you need to contact a mortgage broker with top banking status or simply find an aggressive banker.

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  1. Bookmark this page to find the lowest national mortgage rates in Canada.

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  2. Starting Thursday, uninsured bank borrowers will no longer have to prove they can afford a higher interest rate when switching lenders.

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Elsewhere in this week's Tariff Rodeo, we saw five moves in the top nationally advertised deals:

  • One-year fixed term (uninsured): -5 basis points
  • Four-year fixed term (uninsured): +5 basis points
  • Variable (uninsured): +5 basis points
  • Five-year hybrid (uninsured): +14 basis points
  • Five-year fixed term (insured): +5 base interest rates

Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.

Mortgage interest rates

The interest rates shown below are updated at the end of each day and come from MortgageLogic.news' Canadian Mortgage Rate Survey. Postmedia and imagination. Online Inc., parent company of MortgageLogic.news, will be compensated by certain mortgage providers if you click on their links in the charts.

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