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Mortgage rates ended the year about the same place they started. That place being, still, at historically low levels. This is due, in part, to no changes in fiscal policy at the Bank of Canada. The BofC has kept their key lending rate the same for a long time now. 847 days to be exact! There wasn't really any reason or appetite for investors to move long term bond rates up either. The 5 year government bond yielded it's smallest increase in 5 years. Because of this both the Prime rate and 5 year mortgage rates basically stayed the same throughout the year. 
Where does this leave someone who needs a mortgage. Essentially in a good place and historically in the best place ever when looking at interest rates only. I've seen 5 year fixed mortgage rates as low as 2.99% out there. And if you're wanting to secure your rate hold even longer, in case inflation starts to creep up over the next few years, RBC has a 7 year fixed rate term at 3.59%
A competitive rate is a very important component when it comes to factoring in your Total Cost of Borrowing. Your mortgage advisor should be discussing many other factors, as well, which can affect the amount of money you have to payout over the life of your mortgage. 
If you have any questions about this or want to discuss further please feel free to call or email me. 
Sincerely, 
Tony


Tony Marchigiano | Mortgage Specialist - Mortgage Sales BC Region, RBC Royal Bank | Royal Bank of Canada | T. 604-505-7109 | F. 778-737-0054
Follow me on Twitter: http://twitter.com/RBCTMarchigiano 
Website: http://mortgage.rbc.com/tony.marchigiano

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