Various default-insured fixed rates mortgages dropped again this week.Gene J. Puskar/The Associated Press
Mortgage rates fall again
Various default-insured fixed rates dropped another 10 basis points this week. The lowest national lender, Nesto, is down to 4.29 per cent on five-year money, for example. (A basis point is one-hundredth of a percentage point.)
That said, if you believe the bond market’s forecast of lower rates next year, Nesto’s leading five-year variable at prime minus 1.25 per cent projects to be a better value, assuming you’re a financially stable risk-tolerant borrower.
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For conventional borrowers with 20 per cent or more equity, there was little change atop the leaderboard this week. The one exception was in the four-year space, where First National dropped into the lead with its new 5.04-per-cent offer.
With most mortgage terms, rates are now meaningfully below their trailing 12-month peak. Assuming they stay this low – and it’s hard to call 4 and 5 per cent rates “low” – it should support a spring housing market that’s starting to come to life.
Rates are as of April 13, 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.