"What a stampede this week to crank up the fixed rate mortgages. The action started when Royal Bank increased their 5-year rate by 40 basis points to 4.34%. Quickly afterwards TD Bank, Scotia Bank, you name it, all followed suite… The reason? Simple economics—the bond yield jumped significantly during the previous week making it more costly to raise money for lending."
"While within a couple of days all the big players more or less unified their offerings for the most popular 5-year term, but a smart mortgage shopper has still better options to explore. Unfortunately they are not offered by brick and mortar banks where you can walk in and demand their best rate. To save that extra buck, you have to use a mortgage broker who is willing to locate and negotiate the lower rate."
"After all the action this week the best option continues to be the variable rate. As of today we offer:"
Prime minus 0.1 for a variable rate — which is currently 2.15%
3.70% for 5-years closed (special conditions apply)
With kind regards,
Vasko DeLev, AMP
Accredited Mortgage Professional
License # M08000574
Verico Capital Mortgages Inc.
106-18 Deakin St, Ottawa, ON K2E 8B7
Direct Line: 613-882-7603