June 28, 2016 Best Mortgage Rates Update

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Awesome graphs and data courtesy of House Hunt Victoria

June 28, 2016 Best Mortgage Rates Update:

Despite summer fast approaching, Victoria's real estate market is still experiencing the low supply and high demand conditions that have prevailed throughout most of 2016. Sales per day are ticking downwards, but supply just can't seem to re-establish itself at normal levels.

Lots of turmoil in international markets with Brexit making headlines all week long. Financial markets have been in a real funk coming up 10 months now, and certainly don't look like they're going to improve anytime soon.

Mortgage Rates:

Best fixed rates still range from 2.44-2.59%.

Bond yields are still struggling to breakout of the low .50%'s rates - this will serve to keep fixed rates low for some time.

Variable rates stayed the same this week. Some full featured quick close variable rates are closing in on P-0.45% (2.25%) and some low basic rate products are digging into P-0.55% (2.15%) territory.

I've seen some improvement with the big banks like RBC - with clients showing me their pre-approvals. Still, they are generally all over the place, with renewal notices being unusually greedy. If you have a renewal notice, be sure to check out available rates elsewhere - a few hours spent with a mortgage broker could save you some serious cash.

Credit unions are still very much in the game... offering some of the best rates in the industry. Best credit union option for a 5-year fixed is currently is Coast Capital at 2.54% for high ratio deals, and 2.59% 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-0.4% (2.3%) 45 Day CloseP +0.5%
Best Standard Rates2.49% - High Ratio - 90 Day Close 2.54% -Conventional - 120 Day CloseP-0.4% (2.3%)P +0.5%
Low Rate Basic Products2.44% -Must Close in 120 Days - High Ratio Only 2.54% - Must Close in 90 Days - ConventionalP-0.55% (2.15%) - Must Close in 90 Days - High Ratio Only P-0.4% (2.3%) - Must Close in 90 Days - Conventionaln/a
Credit Unions2.59% - Conventional 2.54% - High RatioP-0.35% (2.35%)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 July 13, 2016
Benchmark Rate4.64%
5 Year Government of Canada Bond Yield (May 31, 2016)0.57%

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.