A look at the lowest available mortgage rates on fixed and variable terms and HELOCs in Canada this weekGene J. Puskar/The Associated Press
The calm before the Fed
Short-term mortgage rates took a turn for the worse this week. The lowest nationally-advertised uninsured two- and three-year fixed offers increased by 20 and 15 basis points, respectively. (One basis point is one-hundredth of a percentage point.)
Apart from this, it was a quiet week in the rate market as lenders await the critical U.S. Federal Reserve rate announcement on May 3 that could alter the direction of interest yields for weeks to come, depending on how worried the Fed seems about inflation. And yes, Fed policy has a major effect on Canadian mortgage rates — mainly because it moves our bond yields, which affect lenders’ capital costs.
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For those of you buying or refinancing in the next four months, it’s generally smart to secure a no-cost rate hold sooner than later. Even though seemingly everyone and their dog expects lower inflation and lower rates by year-end, that doesn’t mean rates can’t jump in the interim.
Rates are as of April 27, 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.