November 4, 2016 Best Mortgage Rates Update

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It’s been a spooky fall for the mortgage world with a lot of systemic changes!  Moving forward, I think we can benefit from a more consistent approval processes across the board. 

November 4, 2016 Best Mortgage Rates Update:

It's been an interesting fall so far. The Victoria Real Estate market is still a firmly entrenched sellers market. Inventory is still unbelievably low, so when a good property appears on MLS, it garnishes ALOT of attention. Recent changes to the mortgage qualification process have a lot of people scratching their heads and resetting their expectations. What has been true to some extent will now become a reality for most: If you want to be a homeowner, you will have to actively plan and strategize your entry into the market. Mortgage financing is becoming increasingly difficult - and should be your first step in beginning your Real Estate adventure.

Mortgage Rates:

Overall, mortgage rates have trended lower in the last 2 months.

Best fixed rates are now ranging from 2.34% to 2.44% depending on product. I'm seeing consistent rate drops and increased competition across the entire lender spectrum right now - which probably points to a decrease in overall real estate market activity in BC - with Vancouver leading the way.

Some full featured quick close variable rates are closing in on P-0.5% (2.25%) and some low basic rate products are digging into P-0.55% (2.15%) territory.

The big banks have been forced to compete somewhat, but if you're talking to a mortgage advisor in a big bank like RBC or CIBC, be sure to check your rate and product with a mortgage broker, as the big banks usually can't help themselves from getting a little greedy if they think you aren't savvy. Another thing - I've heard anecdotal evidence of in-branch mortgage advisors being extremely pushy and convincing people to use their own sales motivated realtor contacts. Just remember, you don't have to go hat in hand to the bank. They WANT your business - better to make them compete for it, than being taken for a ride.

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 2.44% for high ratio deals, and 2.54% for conventional deals. There are several other credit unions sitting between 2.69% and 2.79%, which are still great rates when you need a bit of flexibility in your borrowing situation. 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 Specials2.34% - Must Close within 60 Days - High Ratio Only P-0.45% (2.25%) 45 Day CloseP +0.5%
Best Standard Rates2.34% - High Ratio - 60 Day Close 2.44% -Conventional - 120 Day CloseP-0.45% (2.25%)P +0.5%
Low Rate Basic Products2.24% -Must Close in 90 Days - High Ratio Only 2.39% - 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 Unions2.54% - Conventional 2.44% - High RatioP-0.30% (2.4%)P +0.5%
Pre-Approvals2.54%--

* 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% (2.85% at TD)
Bank of Canada Key Overnight Lending Rate0.5%
Next Bank of Canada Rate Update December 7, 2016
Benchmark Rate4.64%
5 Year Government of Canada Bond Yield (Nov 4, 2016)0.65%

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.