June 7, 2016 Best Mortgage Rates Update
June 7, 2016 Best Mortgage Rates Update:
Best fixed rates still range from 2.44-2.59%, with a few special deals as low as 2.39%.
Variable rates are getting better with more lenders jumping onboard to compete. 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 out of the game.
Credit unions are now 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 Rates | 5 Year Variable Rates | HELOC | |
|---|---|---|---|
| Quick Close Specials | 2.49% - Must Close within 45 Days - High Ratio Only | P-0.4% (2.3%) 45 Day Close | P +0.5% |
| Best Standard Rates | 2.49% - High Ratio - 90 Day Close 2.54% -Conventional - 120 Day Close | P-0.4% (2.3%) | P +0.5% |
| Low Rate Basic Products | 2.44% -Must Close in 120 Days - High Ratio Only 2.54% - Must Close in 90 Days - Conventional | P-0.55% (2.15%) - Must Close in 90 Days - High Ratio Only P-0.4% (2.3%) - Must Close in 90 Days - Conventional | n/a |
| Credit Unions | 2.59% - Conventional 2.54% - High Ratio | P-0.35% (2.35%) | P +0.5% |
| Pre-Approvals | 2.79% | - | - |
* 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 Prime | 2.7% |
| Bank of Canada Key Overnight Lending Rate | 0.5% |
| Next Bank of Canada Rate Update | July 13, 2016 |
| Benchmark Rate | 4.64% |
| 5 Year Government of Canada Bond Yield (May 31, 2016) | 0.62% |
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.
