Recent Mortgage Rate trends in Canada
We have seen an increase in mortgage rates due to the largest bond yield hike in 5 years. Find out more on the current mortgage rate trends in this article.
To some this has come with no surprise but for others it comes as a shock. Lets not get too carried away now, rates are still historically incredible and still much lower than the average rates over the last 15 years. Lets go back and take a look at rates over the recent history. In 2000 the 5 year fixed rates were around 8.75%. Over the next four and a half years the lowest they got was 5.75%. Between 2005 and 2008 they climbed back up to 7.5% and have since plummeted down to where we now sit in the mid 3% range. Rates are still great when you look at our recent history.
That being said, because they are so low, they inevitably have nowhere to go but up. That’s why some risk adverse people are seeking longer-term products such as the 10 year fixed. The theory behind this notion is that because they will inevitably rise, why not lock in an affordable payment now for the next decade.
There are still those of us who enjoy the ride, who feel we can manage the risk and go with the flow. These people should certainly consider a Variable Rate mortgage. The Bank of Canada Prime rate has remained 3% since September of 2010 and many consumers welcome the risk of taking a variable rate that will fluctuate with the Prime rate should it move.
There is no right or wrong theory, each person has their own risk tolerance. The best advice is to talk to your mortgages.ca broker and figure out what you are most comfortable with. At the end of the day as mortgage brokers, we want you to feel comfortable with your product. We will give you advise and expertise but only the client can decide what’s best for themselves and their families. At mortgages.ca we are currently offering our clients a variable rate of 2.45%*
For more information on the recent mortgage rate trends, please call 1-877-245-1185 or email [email protected]