We have continued to see mortgage rates trend downward over the past few weeks for fixed products. Today we are seeing 5 year fixed starting around the 4.2-4.3% range, and 3 year fixed about 10 – 20 points higher at 4.5 -4.6%. Shorter one and 2 year fixed are in the mid to high 5 range with a variety of lenders. With 3 cuts now to the Bank of Canada overnight rate we are seeing variable mortgages start around the 5.45% range.
The Bank of Canada meets again on Oct 23rd and there will be another rate cut to the overnight rate, the question is will it be 25 or 50 points? The markets have the odds around a 75% chance we’ll see a 50 point cut, but we have some key data points to be released between now and then that will impact the odds of that 50 point cut. Dates to watch are Oct 11th where we get Canadian employment data for September, and Oct 15th we get the inflation figures for September. My money is on a 50 point cut, but we’ll have to wait a few weeks to see what happens!
If you have a mortgage pre approval in place, or a renewal coming up I encourage you to reach out for a second opinion on your rates as some banks are adjusting downwards faster than others on their fixed products, and some banks are being more flexible than others when it comes to rate exceptions and discounts from posted rates.
Questions about your mortgage? I encourage you to reach out!
519 372 8524
Craig Van Dolder
BC Mortgage Broker
ON Mortgage Agent Level 2
C. 519-372-8524 E. craig@vandoldermortgages.com Web: vandoldermortgages.com