Evaluate all of Canada’s best mortgage rates in one place. RATESDOTCA’s Rate Matrix let’s you compare pricing for all key mortgage types and terms.
|Insured||80% LTV||65% LTV||Uninsured||Editor's Tips|
Mortgage rates are likely near their bottom for this economic cycle, for three reasons:
1) The Bank of Canada stated its aversion to negative interest rates repeatedly, declaring rates are already at the “effective lower bound”
2) Economists project higher inflation and bond yields in 2021
3) BoC bond buying is expected to reduce fixed mortgage rates only 0.05 percentage points more from here.
While rates are likely sideways-bound for many months (maybe a few years), the unlikelihood of further prime rate reductions suggests that fixed rates may have a better risk/reward profile than variable rates.
The BoC’s own forecasts, as well as the economist consensus, now project no rate increases until at least 2023 (2+ years). Keep an eye on the 5-year bond yield, however, as a move above 0.60% could indicate a change in rate trend from sideways to up.
Rates with exceptional value this month include:
Glossary: Insured: A mortgage that has customer-paid default insurance (typically purchases with less than a 20% down payment); Insurable: A mortgage that has lender-paid default insurance and 20% equity or more; Uninsured: A mortgage without default insurance (this includes all refinances, amortizations over 25 years, purchases of properties over $1 million, non-owner occupied rental properties and other mortgages not meeting default-insurance rules).
Most benchmark rates were little changed last month. These values are as of November 1, 2020:
*Lowest nationally available mortgage rates.
The economy remains fragile to say the least. Here are the main indicators worth watching: