The new year starts with a handful of increases in default insurance rates, but nothing that causes panic.
The lowest nationally advertised two-year fixed financing rose 20 basis points to 3.99 percent this week (True North Mortgage), while the cheapest three-year fixed financing rose a modest five basis points to 3.89 percent (Citadel Mortgage).
There are lots of offers regionally. Below, in no particular order:
- Ratebuzz’s five-year fixed interest rate is 3.69 percent (in Ontario; insured only)
- Five-year variable from Ratebuzz at 3.39 percent (also in Ontario; only for insured people)
- Butler Mortgage’s three-year term is 3.64 percent (in Alberta, BC, Ontario; insured only)
- Coast Capital’s three-year maturity is 3.84 percent (in B.C.)
- Five-year interest rate from Coast Capital set at 3.94 percent (in B.C.).
- Access the Credit Union’s 3.45 percent variable (in Manitoba)
Based on what can currently be observed without clairvoyance, derivatives markets are pricing in about 100 basis points of interest rate increases over the next five years.
This suggests better protection in the medium to longer term
fixed interest rates, especially if lenders combine them with fair prepayment penalties and flexible refinancing options.
However, a well-timed global crisis could upend this entire prospect – just to remind everyone who’s really in charge: the universe and its random events.
In the short term, Friday’s Canadian and U.S. jobs reports could change the mortgage rates you see below, so keep an eye on these headlines.
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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