A "SOLD" sign decorates the lawn of a new house in Pearl, Miss., Sept. 23, 2021.Rogelio V. Solis/The Associated Press
Rate options below 6 per cent are scarce
None of the leading mortgage rates changed this week, apart from the 10-year fixed, which no one cares about anyway. For now, we’re in a holding pattern unless five-year government bond yields start pricing in more inflation and BoC rate tightening.
Any uninsured borrower who wants a rate under six per cent has to choose either a five-year fixed term or deal with a small regional lender, like a credit union.
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The former isn’t a good option unless you’re risk-averse or need the lowest possible qualifying rate. (The lower the rate, the more a typical borrower can qualify for.)
The latter is a great option. The fact is, however, fewer people think of credit unions when they’re mortgage shopping.
Examples of credit unions with tremendous rates include:
Community savings in B.C. (5.29 per cent five-year fixed.)
Rapport Credit Union in Ontario. (5.79 per cent five-year fixed.)
Too many to mention in Manitoba. (This province consistently has among the best rates in the country thanks to its liquid deposit-taking lenders.)
Rates were sourced from the MortgageLogic.news Canadian Mortgage Rate Survey on Sept. 7, 2023. We include only providers who advertise rates online and lend in at least nine provinces. Insured rates apply to those buying with less than a 20 per cent down payment or switching a pre-existing insured mortgage to a new lender. Uninsured rates apply to refinances and purchases over $1-million and may include applicable lender rate premiums. For providers whose rates vary by province, their highest rate is shown.
Robert McLister is an interest rate analyst, mortgage strategist and editor of MortgageLogic.news. You can follow him on Twitter at @RobMcLister.
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