March 22, 2016 Best Mortgage Rates Update
This week I released my newest calculator. This Property Transfer Tax Calculator determines the property transfer taxes due on purchases in BC (under the new rules established in March 2016). It will also calculate the first time homebuyers, and newly built home tax exemptions.
If you're a first time homebuyer, or considering purchasing a 'newly built home' - use this calculator to plan for your closing costs!
New downpayment rules are now in effect after February 15, 2016.
Use my new Closing Cost Calculator for First Time Homebuyers to figure out what your minimum downpayment would be under the new rules. (You don't have to be a first time homebuyer to use the calculator)
Fixed mortgage rates held steady this week after a slight dip last week. 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-0.4% (2.3%) and some low basic rate products are digging into P-.55 (2.15%) 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 Rates||5 Year Variable Rates||HELOC|
|Quick Close Specials||2.39% - Must Close within 45 Days - High Ratio Only||P-0.4% (2.3%) 45 Day Close||P +0.5%|
|Best Standard Rates||2.54% - High Ratio - 90 Day Close 2.59% -Conventional - 90 Day Close||P-0.35% (2.35%)||P +0.5%|
|Low Rate Basic Products||2.44% -Must Close in 90 Days - High Ratio Only 2.54% - Must Close in 90 Days - Conventional||P-0.5% (2.2%) - Must Close in 90 Days - High Ratio Only P-0.4% (2.3%) - Must Close in 90 Days - Conventional||n/a|
|Credit Unions||2.74% - Conventional 2.69% - High Ratio||P-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.
|Bank of Canada Key Overnight Lending Rate||0.5%|
|Next Bank of Canada Rate Update||April 13, 2016|
|5 Year Government of Canada Bond Yield (March 21, 2016)||0.74%|