Mortgage Rates Dropping

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Mortgage Rates Dropping

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.

Important Reminder Regarding Your Mortgage Renewal

If your mortgage is up for renewal and you are being contacted by your lender to early renew before the maturity date please call or email us before signing the renewal. We are able to give you a quick recap of rates in the market to make sure you aren’t signing for a rate/term that isn’t beneficial for you. Often times your lender will tell you that you only have a very limited time to sign the renewal to pressure you into taking the rate they want. Get in touch with us for a quick 2nd opinion!

If you require any further information regarding this article or any other mortgage matters please contact our office at 604‐556‐3893. Also, as a reminder to anyone looking for a mortgage, we offer 4 month pre-approvals at no cost to you. This means that you can get a rate hold for up to 4 months to protect yourself in case rates rise.

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About the Author:

Alex Kotai
Alex Kotai has worked in the mortgage lending business for over 10 years. His career started at HSBC Bank Canada where he spent most of his time in senior management roles which involved training and managing the sales staff at his branch. After leaving HSBC, Alex decided to open his own mortgage brokerage firm, Your Mortgage Source. Through his company, Alex has access to many lenders across the country with a very expansive list of products.