Mortgage rates

beaver hunter · #1 02-13-2016, 08:10 AM

Anybody sign or due to sign right away? I got offered 2.79 for 5 yr fixed, I think I can get lower though.

Lefty-Canuck · #2 02-13-2016, 08:12 AM

I got 2.64 fixed 5 years in October.

LC

elkhunter1234 · #3 02-13-2016, 08:23 AM

Mine is due in April, talk to the bank yesterday and was quoted 2.99 for a 5 year fixed. Maybe I should shop around a bit..

Domestique · #4 02-13-2016, 08:40 AM

https://cgymortgage.com/rates

dend · #5 02-13-2016, 09:29 AM

I was offered 2.79 and said if you can do 2.59 ill sign up. Got a call a day later and im at 2.59 for 5 years. Dealing directly with the bank.

trouty · #6 02-13-2016, 10:47 AM

2.65 five years. Now I read today canada may be in negative interest rates in a year. Can't win.

rugatika · #7 02-13-2016, 11:18 AM

Just curious if there's a reason to go fixed right now as opposed to variable? I understand rates are at all time lows and completely irrational, BUT, is there any real chance of Canada increasing rates in the next few years given energy prices and the current state of economy?

tirebob · #8 02-13-2016, 11:29 AM

I am paying 2.14 on a 5 year variable with the option to lock in at I think 0.5 higher at anytime (might be a bit more to lock in but I can't remember right now exactly). Doesn't really matter to me anyways. I always go variable as you are always getting the lowest available rate and I pay extra on my mortgage every month so with the extra low rates my principle savings have more than compensated for even a big jump in rates by the time one needs to renew anyways... Locking in costs you more in the long run almost every time.

Twisted Canuck · #9 02-13-2016, 12:02 PM

Quote:

Originally Posted by rugatika

Just curious if there's a reason to go fixed right now as opposed to variable? I understand rates are at all time lows and completely irrational, BUT, is there any real chance of Canada increasing rates in the next few years given energy prices and the current state of economy?

I've always had variable, and done much better than fixed (as low as 1.5%, when my variable was 3/4% under prime!)...but when I renewed in Summer of 2013 fixed rates were for the first time lower than I could get with variable and I think that may be the case now, so I locked in for the first time ever at 2.79% for 5 years. Watching it closely, I am marginally ahead of where variables have been in this time frame.

Etownguy · #10 02-13-2016, 03:33 PM

http://www.ratehub.ca/

justsomeguy · #11 02-13-2016, 03:58 PM

Post the 2009 financial mess the banks switched from variables being prime minus to prime plus. At that point the difference between variable and fixed closed quite a bit. That and the fact that everyone assumed the economy would continue firing on all cylinders leading to inflation that would require interest rates to rise meant everyone switched to fixed.

I'm presently on a variable that expires this year. I've been planning to wait for them to drop interest rates this spring before signing up again. I'm hoping to be mortgage free in a few years and might just go for a LOC if I can get a good enough rate.

whitetail Junkie · #12 02-13-2016, 04:13 PM

Quote:

Originally Posted by rugatika

Just curious if there's a reason to go fixed right now as opposed to variable? I understand rates are at all time lows and completely irrational, BUT, is there any real chance of Canada increasing rates in the next few years given energy prices and the current state of economy?

They might go lower if anything.

nelsonob1 · #13 02-13-2016, 05:16 PM

Quote:

Originally Posted by rugatika

Just curious if there's a reason to go fixed right now as opposed to variable? I understand rates are at all time lows and completely irrational, BUT, is there any real chance of Canada increasing rates in the next few years given energy prices and the current state of economy?

Realistically the is virtually zero risk in variable rates increasing in the next few years and it is very likely that interest rates will fall over the next twelve months.

In terms of stagnation, the economy has yet to realize what it faces and the proposed spending by the Liberals will not stimulate except on a localized scale. Canada is very much facing a period of negative inflation and interest rates will fall in parallel.

79ford · #14 02-13-2016, 05:45 PM

Quote:

Originally Posted by nelsonob1

Realistically the is virtually zero risk in variable rates increasing in the next few years and it is very likely that interest rates will fall over the next twelve months.

In terms of stagnation, the economy has yet to realize what it faces and the proposed spending by the Liberals will not stimulate except on a localized scale. Canada is very much facing a period of negative inflation and interest rates will fall in parallel.

I would be curious what would go on with rates if the dollar doesnt stabilize. Everyone thought they would cut rates again but the dollar was sliding soo badly they chickened out. Just hope the currency stays good or they ll have to hike like theres no tommorow to turn it around.... look at brazil and russia, 11% and 14% rates at the central bank so probably 18% for the people.

AdverseCity · #15 02-13-2016, 06:01 PM

I got a 120 day rate hold at 2.64 fixed 5 year term in December but my broker said she'll shop around before closing if rates go lower. They dropped slightly so I'll likely sign at a couple points less in late March.

nelsonob1 · #16 02-13-2016, 06:24 PM

couple of lenders are already below 2.5. with the mortgage rules tightening up there will be increased competition bringing it lower over the next few months.

Skybuster · #17 02-14-2016, 08:42 AM

If you are willing to accept the risk a Variable will save you a few points on interest. But for me I like the security of locking in for a good period of time with these rates. I don't watch rates that closely and I know that the rate will have jumped before I can lock in. And if you have to add 0.5 to the new current rate, after a 0.5 jump, that would be a Doh! moment.

I just locked in a 5 year at 2.59%. But I had to show my bank where I could get that rate before they would come down from 2.79. I almost switched banks but convenience kept me.

geezer55 · #18 02-14-2016, 09:23 AM

Love reading how people are trying to get .1% lower rates for mortgage rate. I can remember when paying off our house the lowest rate we paid was 7% for 5 year locked in. My brother just about left the keys for his house on the dining room table and walk away because the best rate he could get was 18%. We were happy for a .5% rate drop. Man how times have changed!

From The Hip · #19 02-14-2016, 09:49 AM

Best rate I ever got was 2.94% and that was only in effect for 2 years as I paid off my home by slamming it with yearly over payments.The first 3 years I had my place I was with Exceed because the banks said I could not afford my home and the rate was 6.78%.In those 3 years I never missed a payment and I managed to save up enough to get CMHC out of the picture so then the banks jumped at the paper when I went looking for a mortgage.

Glad I got the home paid off in 11 years but in hindsight I wish I had not hit "middle age crazy" early.If I had focused on slaying my mortgage debt I could have had it paid off in 7 years.

Mortgage rates are just one factor.A lot of people dont take into consideration the ammortisation period.If you have the property ammortised over 15 years instead of 25 it make a HUGE difference in the money you pay in interest.

Combine a decent mortgage rate with accelerated payments and a shortened ammortisation along with yearly over payments and that mortgage balance gets reduced real fast.

FTH

jtiwana · #20 02-14-2016, 12:17 PM

i just renewed for two of my rentals in Jan 2016. The best I got was 2.2% fixed for three years with National Bank

threeforthree · #21 02-14-2016, 12:57 PM

Man ,our first house lowest intrest rate we had was 12.75

denied access · #22 02-14-2016, 08:55 PM

I would encourage anyone to renew now at a locked in rate for as long a term as they can muster. Mortgage rates are more closely related to bond returns than to BofC rate as they are in competition with the bond market for investment. In fact BofC rates have very little to do with mortgage rates at all. US Bond rates are on the rise with the recovery of their economy and we will soon see our mortgage rates rising with them.

As well the Gov neither controls the BofC rate or the value of the Canadian dollar but through policies affect the economy and therefore these 2 numbers. At the current orgy of useless spending as well as PM Selfie's undeclared war on our prime export in the name of legacy I think we are in for a bumpy ride and you will see mortgage and BofC rates start to ratchet up to early 80's levels to offset what is sure to be a falling dollar, rapid inflation and a drop in our credit rating. As well as our economy splutters mortgage rates will have to come up to cover the increased risk and defaults in the Canadian market.

beaver hunter · #23 02-14-2016, 09:31 PM

Lot's of great info. thanks.

Big~stretch · #24 02-21-2016, 09:30 PM

im on a 2.0 fixed 5 year with bmo

chuck0039 · #25 02-22-2016, 07:56 AM

how long do you guys think the rates will stay this low? Right now I have mine locked in at 2.89%, and due for renewal Feb 1st 2018. I'm hoping that they stay low until then and lock in in for another 5 years. That would be sweet to have 10 years of mortgage rates below 3%

SamSteele · #26 02-22-2016, 09:12 AM

Used a broker last fall and got 2.38 on a 5 year fixed at TD. This is the second time I've used the broker and she always gets me 0.5-1% lower than posted rates. Plus, I don't have to go into the bank to do the dealing. Saves me time and headache.

SS