Very recently we reported that BMO (Bank of Montreal) has lowered their five-year fixed closed mortgage rate from 5.89% to 5.79%. Before that, we mentioned that Royal Bank was dropping its 5 year fixed mortgage rate by .10% and TD bank was also lowering its fixed mortgage rate. Hot on the heels of BMO lowering their fixed mortgage rates, as well as Royal and TD lowering fixed mortgage rates, we have another Canadian Bank joining the trend.
Canadian Imperial Bank of Commerce (CIBC) has made the announcement that they will be reducing their mortgage rate by .10%. Much like BMO and the other Canadian banks that have recently lowered their own rates by as many basis points, this new rate will affect fixed rates only.
Desjardins Group has made a similar separate announcement earlier in the week. So with BMO, Royal Bank, TD, CIBC and even the smaller Desjardins Group lowering their fixed rates, the question remaining is when will the Bank of Nova Scotia follow suit?
Another question remaining is what other factors and influences should be taken into consideration when Canadian home buyers select their mortgage. Choosing a mortgage based on rate alone is akin to purchasing a suit based solely on price. And just as with purchasing a suit, there is no such thing as one size fits all. Canadians who are planning to enter into their first mortgage agreement or second mortgage agreement, for that matter should sign on the dotted line without carefully considering their options and discussing possibilities with a skilled mortgage broker.
