Buyers will be happy to hear this, but interest rates are at a really good level right now! You can lock into a better rate than we’ve seen in the last 5 years, which helps keep your costs low and helps you navigate the stress test a little easier. Keep in mind that your rate always depends on other details of your mortgage application, but a mortgage broker can help you make sense of your particular situation. Contact our fantastic mortgage brokers for more information on what rates you can expect and lock in a pre-approval so you can take your time to find a property while the rates are good.
Eitan Pinsky with Pinsky Mortgages
5 Year Fixed Rates
Interest Rates are often based on bond yields (one aspect of the financial market in North America) and in 2018 bond yields increased and decreased, which lead interest rates to do the same. At this point, bond yields are low, and fixed interest rates have dropped to a low of 2.99% which is fantastic compared to last year. Based on the current financial outlook, don’t expect rates to drop further.
Eitan and his team follow the bond market on a daily basis so they’re always up to date on realistic expectations for rates, ready to get you locked into a good rate or negotiate a better rate.
Another interesting note – at this point some 5 year fixed rates are better than 5 year variable rates, which is a rare occurrence, and great for Buyers looking for stability and options! This is only in certain situations and would only apply to certain buyers, so talk to Eitan and his team if you want to know what your mortgage options are.
5 Year Variable Rates
The Canadian Government kept the variable interest rates the same recently, and aren’t talk about raising rates this year either – great news for anyone with a variable rate. Variable has often been a good option for Buyers who can stomach some changes to their mortgage payments since the rates are often slightly better, though right now there are opportunities with both options, depending on your situation.
The market is pretty active right now, and good properties still tend to sell quickly (and sometimes in multiple offers) so having a hard working and knowledgeable mortgage team on your side will do wonders for ensuring that you know what to expect during the purchase process and over the next few years.
