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Yesterday, the bond yields hit their highest levels since January 14th where rates were higher (fixed mortgage rates are determined by bond yields). On January 14, 2014, 5 year fixed rates were in the 3.39% - 3.49% range. Compare that with today's lowest 5 year fixed of 2.84%. This puts SERIOUS upward pressure on fixed mortgage rates. If you haven't locked in a mortgage rate yet, now is a good time to do so without delay.
In addition to the 5 year fixed at 2.84% (for CMHC insured mortgages only - 2.89% for conventional), there is also a 3 year fixed at 2.49%, which is a great product and is also a great alternative to variable for those unsure. The lowest variable rate is prime -0.65% (2.35%), so the fixed is only 0.14% higher. A single increase, and you are behind on rate. At the end of three years, THEN take a look at variable again to see if there are better options at that time. It's a solid plan.
If you have a mortgage closing coming up, or are just starting to shop for a home, get a mortgage rate locked up as soon as you can to ensure you get the lowest rate possible.
Please visit www.easy123mortgage.ca for more information!
