May 31, 2016 Best Mortgage Rates Update

Creatures from the deep... and the May 31, 2016 Best Mortgage Rates Update:

So... I spent the majority of last week fishing off Northern Vancouver Island... but mostly trying to avoid a visit to Davy Jones' locker. Not to worry, I made it back to civilization safe and sound, but did have an interesting encounter with a giant octopus after he (or she?) tried to eat the irresistable herring that was intended for his other ocean going buddy, the halibut. Pic above is of the octopus sliming his way to freedom off the back of the boat!

Ok, ok... back to mortgages.

Best fixed rates still range from 2.44-2.59%, with a few special deals as low as 2.39%. A few lenders  increased their fixed rates this last week, but a few lenders also decreased their rates, so no real trends showing themselves just yet.

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.

Big Banks, namely RBC, and CIBC 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.

Credit unions who were slow to lower their rates, 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 Rates5 Year Variable RatesHELOC
Quick Close Specials2.49% - Must Close within 45 Days - High Ratio Only P-0.4% (2.3%) 45 Day CloseP +0.5%
Best Standard Rates2.49% - High Ratio - 90 Day Close 2.54% -Conventional - 120 Day CloseP-0.4% (2.3%)P +0.5%
Low Rate Basic Products2.44% -Must Close in 120 Days - High Ratio Only 2.54% - 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 Unions2.59% - Conventional 2.54% - High RatioP-0.35% (2.35%)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 July 13, 2016
Benchmark Rate4.64%
5 Year Government of Canada Bond Yield (May 31, 2016)0.79%

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.