Borrowers shouldn’t expect any big rate moves until next year

By
Millicent Wong
-
0
37
There's a

Mortgage rates continue to hover somewhere between flat and slightly falling.

This, coupled with slightly better pricing and rumors of no further rate cuts from the Bank of Canada, has borrowers favoring three-year fixed and variable contracts over the venerable five-year fixed rate deals.

Whether a short-term or variable strategy pays off depends in part on whether Canada and the US resolve their trade dispute positively – we won't get clarity until next year at the earliest.

In the meantime, the fog of uncertainty will weigh on business investment in Canada. Barring upward growth or inflation booms, bond yields are likely to remain flat or fall through the end of the year. I don't expect any big moves – either up or down – in mortgage rates until after the New Year.

When we looked at interest rates this week, we saw national lenders cut two default mortgage rates:

  • At True North Mortgage, the two-year fixed rate fell 40 basis points to 3.59 percent
  • At Citadel Mortgage, the four-year fixed rate fell 10 basis points to 3.89 percent

True North's two-year offer is a Black Friday special and earns the title of lowest advertised fixed price in Canada.

Some leading rates for the uninsured have also fallen:

  • At Citadel Mortgage, the three-year interest rate fell five basis points to 3.79 percent
  • At Citadel Mortgage, the four-year interest rate fell five basis points to 3.99 percent

Regional players also have some offers worth mentioning:

  • Coast Capital Savings in BC now offers the lowest advertised uninsured five-year fixed interest rate at 3.94 percent.
  • Ratebuzz currently has the lowest rate in Canada at 3.39 percent for an insured variable rate.

Among reverse mortgage rates, Bloom Financial's new 6.69 percent lifetime guaranteed rate is seeing strong demand because it is only slightly higher than standard five-year rates.

  • The best mortgage rates in Canada today
  • The best reverse mortgage rates in Canada today

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

Do you want to save on your mortgage?

For the best national mortgage rates for both insured and uninsured mortgages, updated daily, visit our mortgage rates page

Here

.