3 August 2011

With the American recent debt uncertainty and Canadian yields falling, lenders may now start cutting their fixed rates.  
Some financial institutions have already started acting:  

  • A major Canadian bank reduced its discounted fixed rates by 10bps (0,10%) to 3.69%.
  • A few non-bank lenders cut their 5-year fixed rates by 10bps (0,10%).
  • Some brokers offer 3.39% on no-frills mortgages.

In this case variable mortgage holders may also have certain benefits. If the Overnight Index Swap forecasts are true, the Bank of Canada will hardly raise rates this year. But it should be noted that such predictions can change according to different market tendencies, so it’s always better to consult a mortgage professional before making any serious decisions.

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