Mortgage Agent Level 2
C 519-372-8524
craig@vandoldermortgages.com
Brokerage #12728 | M21003442
INTEREST RATES UPDATE JUNE, 2024
The Bank of Canada sits down on April 10th for their next interest rate meeting. There is some chatter out there about a possible rate cut during this meeting, but I am thinking we’ll have to wait until June or July to see any rate relief.
We did see some good news earlier in March with the February inflation readings coming in well under market expectations. Forecasts were calling for headline CPI readings to jump from January’s 2.9% up to 3.1%, but we saw it fall to 2.8%, the lowest reading since June 2023. If we were to exclude the shelter component (which is largely made up of mortgage interest carrying costs) the CPI inflation number would have only been 1.3%, well below the Bank of Canada’s 2% target. This is encouraging news, as the BOC governor Tiff Macklem wants to see inflation continue to cool before adjusting rates downwards. Our next inflation reading comes on April 16th, lets hope for another drop!
As there has been no change in the prime lending rate, there has been no changes to variable mortgage rates, which are currently starting in the low 6% range for an insured mortgage. On the fixed rate side we have seen some stability in the bond market over the past few weeks, with the 5 year bond yield hovering in the mid 3% range, this means we continue to see 5 year fixed mortgage rates starting in the high 4% range for insured mortgages, and 3 year fixed mortgages starting in the low 5% range.
The best rate that a borrower can secure on their mortgage will depend on many factors, when quoting rates to a client, the following questions fist need to be answered, and this is not an exhaustive list:
- Is the home a rental or your primary residence?
- Is the mortgage insured, insurable, or conventional?
- What is the amortization?
- What is the term length you are looking for?
- Is the property held personally or in a corporation?
- Fixed or Variable?
- What is your credit score?
- What is the amount of the loan?
- Is it a closed or open loan?
If you are looking to get a new mortgage, or renewing an existing mortgage I’d be happy to assist and answer any question you may have. If you are already in the process and want a second opinion of what you are being offered, don’t hesitate to contact me. And remember, the services of a mortgage broker are free, and there is no contract involved, it is a very low commitment arrangement!
Craig Van Dolder
BC Mortgage Broker
ON Mortgage Agent Level 2
C. 519-372-8524
E. craig@vandoldermortgages.com
