Rainy Labour Day Weekend Best Mortgage Rates Update

Summer’s over? A Rainy Labour Day is going to get us started on a busy fall real estate season. When it rains, it pours in Victoria!

Rainy Labour Day Weekend Best Mortgage Rates Update:

Well, after a monster heat wave the last 2 weeks in August, it seems summer is now over with the rains arriving in Victoria just in time for September 1st. 

Well, when it rains it pours - both in actuality and in the real estate market. The fall market feels like it's about to ramp up big time. Traditionally mortgage brokers get busy after labour day, however I've noticed a massive uptick already, in the last 2 weeks of August with people looking for financing, getting pre-approved and basically getting themselves prepped for battle.

Mortgage Rates:

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

Best fixed rates are now ranging from 2.34% to 2.44% depending on product. Some lenders are still keeping their rates around the 2.49% level, as the volume of business is still more than sufficient.

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.

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 2.64% 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 Specials2.44% - Must Close within 45 Days - High Ratio Only P-0.45% (2.25%) 45 Day CloseP +0.5%
Best Standard Rates2.44% - High Ratio - 90 Day Close 2.44% -Conventional - 120 Day CloseP-0.45% (2.25%)P +0.5%
Low Rate Basic Products2.34% -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 Unions2.64% - Conventional 2.49% - High RatioP-0.35% (2.35%)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%
Bank of Canada Key Overnight Lending Rate0.5%
Next Bank of Canada Rate Update September 7, 2016
Benchmark Rate4.74%
5 Year Government of Canada Bond Yield (Aug 31, 2016)0.67%

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.