Fixed mortgage rates falling fast

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Millicent Wong
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Lenders are having a fixed-rate mortgage sale – and everyone is invited.

This week marked new two-year lows for several plans advertised nationwide. Including:

  • The three-year fixed term (insured) fell by 20 basis points to 4.24 percent
  • The three-year fixed (uninsured) pension fell 10 basis points to 4.64 percent
  • The five-year fixed (uninsured) annuity fell 10 basis points to 4.54 percent

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In some provinces, well-qualified borrowers can secure even more attractive deals through a regional provider (see rate table below) or by pitting major banks against each other. In some cases, banks offer their rates 20 to 40 basis points below their advertised interest rates.

The three-year rates above are still your best fixed-rate mortgage options, assuming: (A) you don't want to go with a variable rate and (B) you need a minimum three-year mortgage.

Three-year mortgages are particularly tempting if you get a good deal from a lender that offers cash refunds. In this case, the projected effective borrowing cost of a shorter 36-month term can easily dwarf all other fixed rate options.

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  2. Industry players had complained about the imbalance, which required re-application of the stress test when switching banks, but not when remaining with the same financial institution at the time of renewal.

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Meanwhile, on paper, variables remain the best bet for people who can stomach the possibility that inflation will rise again and push interest rates higher. This assumes interest rates go where bond traders think they will go. All it would take is a series of unexpectedly inflationary economic reports to radically change the “thinking” of bond traders.

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

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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