80 Athol Street East, Oshawa, ON L1H 8B7  
Phone: 905 576-4111  Toll Free: 1-866-525-4111  Fax: 905 435-5383

Pat Dyck

Sales Representative


Roxanne Meek

Sales Representative

Matt Dyck

Sales Representative 

Friday January the 18th, 2019 

Updated Mortgage Information

November 20, 2010


Yet again the 5 year fixed mortgage rates have sunk to all time lows but are poised to bump up slightly, if perhaps only temporarily.

Therefore some of you are asking yourselves “Should I lock in to a five-year rate?” 

With the news that TD Canada Trust and Royal Bank just raised their 5 year from 5.19% to 5.44%, many of you are wondering if you should lock in right now before the rates go any higher. While it’s most likely other lenders will follow TD’s lead – the banks have been holding firm together all year in keeping margins very high – it's believed the variable rate is still the best course to take with your mortgage. The fixed rates are based on the bond market but the variable rate is based on the Bank of Canada’s (BOC) overnight rate.

It appears that the BOC will hold its overnight rate at 1% for some time, due to the weakness in the U.S. economy; however it would be remiss if it was noted that the current conversion rate is still between 3.59% and 3.79%, meaning there is still time to lock into the all-time low 5 year rate.

Most lenders will not be advising their variable rate clients to convert to the fixed rate. Most are currently in the 2.25% rate range and they don’t foresee this rate getting close to the current conversion rates for at least another year, or possibly two. Given that the global economic instabilities may continue for many years, it is possible that we have entered a protracted period of historically low borrowing costs. Low interest rates have become a necessity due to their inherent stimulative effects.

But, if any of you are nervous and want or need to convert to a guaranteed low rate for the next five years, and are comfortable increasing your interest costs by 50% to secure some peace of mind, you can’t go terribly wrong doing it now.

Please feel free to call or e-mail us and we can refer you to a mortgage specialist to discuss your options.

Source: The Mortgage Centre

Tagged with: mortgage rates fixed variable
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