Canadian Mortgage rates are the lowest in history. Can they go any lower?
Canadian mortgage rates are the lowest in history. Can they go any lower?
Sep 28, 2020
Canadian mortgages rates are at a record low, but should potential home buyers lock in rates right now or will rates go any lower?
Not by much, but yes, rates will go lower is the answer from several analysts citing the Bank of Canada’s policy, competition among lenders, seasonal factors and the pandemic’s impact on the economy.
Canada’s central bank slashed the benchmark interest rate by 0.5 per cent on three separate occasions in March to bring them down to 0.25 per cent. Government of Canada five-year bond yields fell to 0.41 per cent in August from 1.64 per cent last December.
Both measures affect how mortgage rates are set. By June most major banks and mortgage brokers were offering five-year fixed-rate loans at less than two per cent. A rate of 1.64 per cent a year can be found on RateHub, a Toronto-based personal finance website co-founded by James Laird.