Posted fixed-rate mortgages at TD Bank, CIBC, Scotiabank, Bank of Montreal and Royal Bank were cut last week, reflecting lower rates in the bond market.
Bank of Montreal was the first to announce its cuts last Wednesday while Scotiabank waited until Thursday afternoon, the last among the big banks. Laurentian Bank also lowered posted rates.
The largest percentage cuts were at Scotiabank and CIBC; however, these cuts kept all the lenders at close to the same rates. Across the board, five-year fixed rates were at 5.59 per cent and two-year fixed rates dropped to between 3.75 per cent and 3.95 per cent . Scotiabank and BMO also offered a five-year fixed closed special of 4.29 per cent.
Overall, when comparing the lowest ten-year fixed closed rate, BMO and TD have rates of 6.7 per cent, whereas CIBC is slightly higher at 6.80 per cent. Variable closed mortgage rates did not change.
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hen speaking about the ‘Big 5′ lowering their rates… there are some things to keep in mind. Above and beyond the banks lowest rates, there are promotional rates that are available to consumers. These lower rates might be available on a 30-day ‘Quick-close’ product OR available only to select brokers who have exceeded a certain quota in mortgage volume. Fortunately, I’m in a position to discount past a lot of advertised rates. Call me to discuss your deals today!
Canadian home ownership costs have become more expensive for the first time in 18 months, according to a report today by the Royal Bank of Canada.
Rising property values and a recent pickup in mortgage rates are at cause behind the numbers.
The decline in affordability was true in all major markets and in all types of housing, and follows steep declines since the spring of 2008. Yet despite the latest decline in affordability, it’s still better than it was a year ago.
“The current levels in the RBC measures are in line with those in early 2006 when housing market activity was shifting into high gear in Canada,” the report says.
The average rate on a five-year conventional mortgage went from 5.45 per cent to 5.73 per cent in the third quarter, according to the RBC. It was the first quarterly increase since last year.
The overall property market has also picked up.
“In markets such as Vancouver, which had been badly hurt last year, the turnaround has been nothing short of breathtaking,” says the report. “In that market, as well as in parts of the Greater Toronto Area, bidding contests are common again.”
