April 12, 2016 Best Mortgage Rates Update

April 12, 2016 Best Mortgage Rates Update:

I've been swamped this last week so I'll keep the commentary short. 

The Bank of Canada meets tomorrow and will review the overnight lending rate. Commentary may be interesting as Canada's economy has shown some recent and unexpected signs of strength.

Fixed mortgage rates dropped slightly among some of the bigger lenders this week. Scotia is finally entering the game with their 5 year fixed rates dropping to 2.59%.  The lowest fixed rate offered right now is a 2.49% quick close - high ratio special. In some cases, I can beat this by another .10% to 2.39%.  Ask me if this is possible in your scenario. Several mono-line lenders are competing with decent products in the 2.44% - 2.59% range. 

Variable rates are still relatively unattractive right now. Discounts off prime are still weak. Some full featured quick close variable rates are closing in on P-0.3% (2.4%) and some low basic rate products are digging into P-0.4% (2.25%) territory.

Big Banks, namely RBC 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.

Best credit union option for a 5-year fixed is currently is Coast Capital at 2.69% for high ratio deals, and 2.74% for conventional deals. 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-0.3% (2.35%)P +0.5%
Low Rate Basic Products2.49% -Must Close in 90 Days - High Ratio Only 2.54% - Must Close in 90 Days - ConventionalP-0.4% (2.2%) - Must Close in 90 Days - High Ratio Only P-0.35% (2.25%) - Must Close in 90 Days - Conventionaln/a
Credit Unions2.74% - Conventional 2.69% - High RatioP-0.25% (2.45%)P +0.5%

* 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 April 13, 2016
Benchmark Rate4.64%
5 Year Government of Canada Bond Yield (April 11, 2016)0.71%

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.