Do you have a fixed or variable mortgage? Below is the latest Pulse of Interest Rates in Canada!
The current Overnight Interest Rate is 1.75%. The Bank of Canada left it unchanged during its December 4th meeting. The next meeting of the Bank of Canada is on the 22nd of January. The expectation by most market Analysts is that the Overnight Rate will remain at 1.75% at the next meeting. The Bank of Canada has cited better then expected exports, a resilient housing market and fairly stable inflation as the main factors that affected its most recent decision. The current benchmark rate is at 5.19% and this is the rate all insured purchases are qualified at. Every overnight rate increase affects all borrowers that have a HELOC or a Variable rate by an immediate 0.25% increase and does not affect at all borrowers that have fixed rates of 1-5 years unless they have a pending mortgage renewal.
The best 5-year fixed rate available is 2.69% while the best 5-year variable is 2.85% for this month for an insured purchase with less than a 20% down payment or with a down payment over 35%. For applicants with a credit score over 620 and over 680 respectively there is the option to qualify without the 2% stress test for a rate between 3.09% to 3.89%. The preceding rates are valid only for applicants with a strong credit history and scores over 620, 650, 680 or 700 depending on the Lender. Rates are higher for conventional and uninsurable mortgages and may also be higher in other parts of the province as certain lenders only lend in the Lower Mainland and major Metropolitan areas across Canada.
If you are considering buying or refinancing and would like to know who are the Top 2 best mortgage brokers in Campbell River, please do not heistate to contact me.