A look at this week’s available mortgage rates on fixed and variable terms and HELOCsRobert F. Bukaty/The Associated Press
Fixed mortgage rates edge higher
Our bond market is rather unhappy with the piping-hot job growth and inflation reports as of late. And when bond investors aren’t happy, they sell bonds, which drives up interest rates. That’s exactly what’s been happening for the past few weeks.
The impact on mortgages this week was a five- to 10-basis-point boost to some of the lowest rates in the market. Variable rates are unchanged.
McLister: Homeowners beware, cash bonuses on mortgages come with strings
Among the standouts this week, QuestMortgage still has unbelievably low short-term default-insured rates. If you’re a believer that rates and inflation have peaked, and you’re risk-tolerant and financially stable, a one- or two-year fixed at 4.64 per cent is sensational.
For those needing uninsured mortgages, the 5.19 per cent three-year at HSBC has value – mainly for risk-averse borrowers who need financing for three full years.
Meanwhile, many risk-tolerant borrowers are gravitating to shorter terms and paying a premium for it. The thinking is that they’ll refinance into a falling rate market in 2024 or 2025. If the Bank of Canada trims rates by early next year as markets now anticipate, those shorter terms will outperform longer terms, even though they cost more up front.
Rates are as of Feb. 16, 2023, from providers that 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 those 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.