Toronto, ON (PRWEB) September 11, 2013
Are Fixed Mortgage rates on the rise, and how will news of fixed Mortgage Rates on the rise affect Canadians looking to renew their mortgage, refinance their mortgage or first time home buyers looking to obtain a mortgage? First we need to find out what has been happening in the past few months with fixed mortgage rates and variable mortgage rates.
Fixed Mortgage Rates in Canada
Since a fixed mortgage rate hike in June 2013, news of fixed mortgage rates on the rise has been on the mind of many home owners who have a mortgage and potential home owners looking to obtain a mortgage. Many Canadians are wondering the future of mortgage rates Canada and how this will affect them. The news of rising fixed mortgage rates emerged again August 20th, as the Bank of Montreal took the lead in raising 2 five year fixed closed mortgage rates by .20% with their 5 year Eco Smart ™ fixed closed to 3.79% and their 5 year low rate fixed closed to 3.79% effective August 21st. They were soon followed by RBC with increase by 0.20 per cent on 4 of their special rate fixed offers of four-year closed at 3.59%, five-year closed at 3.89%, seven-year closed at 4.19% and ten-year closed at 4.59%; and 3 of their fixed rate posted rates of the three-year closed at 3.95%. four-year closed at 4.74% and five-year closed at 5.34%. RBC announced the rate increase on August 21st, effective August 22th followed by the other leading banks. So, should we be concerned? Today, interest rates are still the lowest in history with best mortgage rates, and how much more of an increase to expect can be anyone's guess.
Variable Mortgage Rates in Canada
News for the variable mortgage rate came on September 4th, 2013 with the Bank of Canada issuing a press release stating “Ottawa -The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent.” This press release comes as good news for those with variable mortgage rates, as the Bank of Canada overnight rate has a direct impact on variable mortgage rates. Variable rate mortgages typically offer a lower interest rate than fixed rate mortgages and when interest rates are low, you could pay off your mortgage faster and save money on reduced interest costs. The Bank of Canada overnight rate has been at 1% since October of 2012 and experts agree, the overnight rate will not be changing anytime in the near future. Read More from the Press Release.
In the past, a fixed rate was the stable and safe bet with the 5 year fixed rate the most popular rate in Canada while the variable rate was being chosen by Canadians who took the gamble to get the best mortgage rates in Canada and save on mortgage interest. There are many Canadian economic experts who believe a mortgage rate that varies with fluctuations in the bank’s prime rate will offer the greatest advantage when it comes to long-term savings on interest making the variable rate a better choice and best rates Canada.
If Canadians are wondering about mortgage rates on the rise, here is a great quote from Herbert Hoover – “About the time we can make the ends meet, somebody moves the ends.” Talk to your mortgage broker, or have Ratesheet.ca find a local mortgage broker by using their quote system. Your mortgage broker is knowledgeable and is better able to assist with the best choices for you, whether you are a first time home buyer, need to renew, or wish to refinance your mortgage.
Ratesheet.ca is trusted by leading mortgage brokers and borrowers and has assisted thousands of Canadians in their search for getting the best mortgage rates. Ratesheet.ca has the best mortgage rates Canada, whether looking for Mortgage Rates Ontario, Mortgage Rates Alberta, Mortgage Rates BC or anywhere else in Canada. Ratesheet has the tools, services and rates for the home buyer or potential home buyer.
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