How Low Can Rates Go?
While standing in line at my bank the other day I noticed that their fixed rate for a five-year closed term mortgage is 4.09 per cent. It seemed like a good deal. Later that day I noticed that a different bank had lowered their fixed rate for a five-year closed term to 3.75 per cent. In this competitive market, I’m sure that it won’t be long until the other big banks follow suit.
Meanwhile, this week, the Bank of Canada renewed their pledge to keep the overnight lending rate steady until July. While it is certain that rates will increase, how low can they go in the meantime?
With the new mortgage rules set to come into effect in April, now seems like a great time to either jump into the real estate market or to get the most equity out of the home you already own.
