Leading mortgage rates remained low again this week as markets watch oil prices in a hostage situation.
Due to the impact of inflation, crude oil prices have held mortgage rates captive for a month and a half.
The longer WTI oil stays near $100 a barrel, the worse inflation will be – and the higher fixed mortgage rates are likely to be.
Yet none of this seems to bother more than four out of ten Canadians.
So far this month, 47.1 per cent of prime borrowers at Canada’s largest mortgage lender and market agent – Dominion Lending Centers Inc. – have chosen variable interest rates.
Beyond the obvious risk, variable rate discounts are historically stingier than usual.
That means borrowers not only face upside interest rate risk as markets bet on a Bank of Canada rate hike, but they also pay a premium for the privilege.
However, the variables still have their place, and if you want flexibility with lower early repayment penalties, here are the leading rates:
Butler Mortgage: 3.30 percent insured (Alberta, BC, Ontario)
RateHub: 3.35 percent insured (national)
Steinbach Credit Union: 3.45 percent uninsured (Manitoba)
Citadel mortgage: 3.69 percent uninsured (national, excluding Quebec)
Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.
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