The lowest fixed rates advertised nationwide fell again this week in line with the booming spring housing market.
For the first time since the Bank of Canada's interest rate hike last June, you can now get a fixed five-year policy for less than 5% if you are uninsured and just 4.64% if you are insured.
But for smart people, a three-year fixed is the way to go. You'll pay a little more in interest, but you'll have the luxury of refinancing sooner amid whispers of interest rate cuts.
On the variable side, we have heard many instances of large banks offering much lower discretionary variable rates to eligible uninsured borrowers, especially those who have other business with the bank.We're talking Prime Minus 0.75 percent (6.45 percent) or more, and the lowest nationally advertised price is Scotiabank eHOME's uninsured floating rate is 6.64%.
To obtain these discretionary interest rates, all you have to do is beg your bank or broker nicely (you may have to shop around a bit), flaunt your impeccable financial standing, and demonstrate your willingness to enter into new banking transactions. .
Following the Bank of Canada's snoozefest rate meeting on Wednesday, bond market odds suggest there is a 1 in 4 chance that policy rates will be cut on April 10th. However, the first rate cut will not be fully priced in until July.
Weary renters will believe it when they see it.
Robert Maclister is a mortgage strategist, interest rate analyst, and magazine editor. MortgageLogic.news. You can follow him at X. @RobMcLister.
