April 5, 2016 Best Mortgage Rates Update

April 5, 2016 Best Mortgage Rates Update:

Not much new action on rates this week. 

Fixed mortgage rates dropped slightly among more lenders this week - with the net result being more lenders offering the same lower rates. The lowest fixed rate offered right now is 2.39%. Several mono-line lenders are competing with decent products in the 2.44% - 2.54% range. 

Variable rates are still sitting rather stagnant. Discounts off prime are pretty weak, and with the super low fixed rates, the spread between fixed and variable rate mortgages is super thin. Considering a brighter outlook for Canada's economy, it makes real sense to lock into a fixed-rate product right now, rather than perhaps endure potential rate hikes over the next 3-4 years. 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-.45 (2.25%) territory again.

Big Banks 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, come see me right away. I guarantee I will beat their rate and save you some 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 Specials2.39% - Must Close within 45 Days - High Ratio Only P-0.4% (2.3%) 45 Day CloseP +0.5%
Best Standard Rates2.54% - High Ratio - 90 Day Close 2.59% -Conventional - 120 Day CloseP-0.35% (2.35%)P +0.5%
Low Rate Basic Products2.39% -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-0.45% (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 4, 2016)0.7%

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.