After months of rate increases where we saw 5 year fixed rates increase by almost 1%, we now see mortgage rates dropping again. They have now dropped again by about ½% in most cases. Rates rose steadily during the latter half of 2013 and then started to drop again in November & December. Most 5 year fixed rates are now between 3.19% and 3.39% where they were as high as 3.89% only a couple of months ago.
The discount on the variable rate mortgages has also improved as well. We now have variable rates as low as Prime – .55% for a rate of 2.45%. This is still a great option considering the Bank of Canada will most likely leave the Prime rate as is for at least another year or two.
If you’re considering purchasing, refinancing or renewing your mortgage in the next few months then now is the time to get a rate secured at no cost to you.