April 19, 2016 Best Mortgage Rates Update

April 19, 2016 Best Mortgage Rates Update:

The Bank of Canada met last week and kept the overnight lending rate unchanged. Not an unexpected turn of events considering that Canada's economy seems to be gaining traction with oil showing signs of recovery and the Canadian Dollar gaining almost 10% in recent months.

The BOC will likely remain careful and wait to measure any impacts of upcoming government stimulus programs. The next meeting will be May 25th, 2016.

The mortgage market is seeing strong competition right now, with most lenders going head to head. Fixed rates range from 2.44-2.59%, with a few special deals as low as 2.39%. 

Variable rates are still seeing weak discounts off prime, but I am beginning to see some improvement in this area. Some full featured quick close variable rates are closing in on P-0.4% (2.3%) and some low basic rate products are digging into P-0.5% (2.2%) territory.

Big Banks, namely RBC, and CIBC continue to lag behind the mono-line lenders. They simply are not in the game right now. If you have a renewal notice from your big bank, call me right away. I guarantee I will beat their rate and save you some serious money.

Credit unions are getting more competitive lately as well. Best credit union option for a 5-year fixed is currently is Coast Capital at 2.59% for high ratio deals, and 2.64% for conventional deals. There are several other credit unions sitting between 2.69% and 2.79%, which still beats the offerings of RBC and CIBC! Coast Capital is also offering a $1000 to be used in a registered investment product of your choice, and $500 towards legal and appraisal fees to first time homebuyers.

5 Year Fixed Rates5 Year Variable RatesHELOC
Quick Close Specials2.49% - Must Close within 45 Days - High Ratio Only P-0.35% (2.3%) 45 Day CloseP +0.5%
Best Standard Rates2.54% - High Ratio - 90 Day Close 2.59% -Conventional - 120 Day CloseP-0.4% (2.3%)P +0.5%
Low Rate Basic Products2.49% -Must Close in 90 Days - High Ratio Only 2.54% - Must Close in 90 Days - ConventionalP-0.5% (2.2%) - Must Close in 90 Days - High Ratio Only P-0.4% (2.3%) - Must Close in 90 Days - Conventionaln/a
Credit Unions2.64% - Conventional 2.59% - High RatioP-0.25% (2.45%)P +0.5%
Pre-Approvals2.79%--

* Low Rate Basic Products have great rates, but have restrictions that include high discharge penalties, inability to blend mortgage rates if you sell & buy, inability to leave lender during term, etc.

Other Rates:

Lender Prime2.7%
Bank of Canada Key Overnight Lending Rate0.5%
Next Bank of Canada Rate Update May 25, 2016
Benchmark Rate4.64%
5 Year Government of Canada Bond Yield (April 11, 2016)0.78%

Mike Grace is an independent full-time mortgage planner and industry insider located in Victoria, BC. If you are purchasing, refinancing or renewing your mortgage, contact Mike to obtain the best available rates and terms.