Are you on the hunt for a budget-friendly mortgage? You’ve just struck gold. This is Canada’s one and only compilation of mortgage rates that aims to showcase top-notch pricing from every mainstream lender and rate aggregator — provided their rates pass muster.
This vast array of options is key because having a buffet of reputable lenders at one’s disposal improves the odds of landing a killer deal.
But if you want the lowest overall borrowing cost, the quest doesn’t end with the headline rate. Below, you’ll find the ultimate playbook for negotiating the lowest overall borrowing costs in Canada.
How To Qualify For The Lowest Mortgage Rates?
First off, it’s essential to understand that the lowest mortgage rates require default insurance. Why? Because mortgage insurance is like a safety net for lenders, making loans less risky and, therefore, cheaper to offer.
Most new mortgages with less than a 20 percent down payment require this insurance by law.
Now, we get that it might seem backward to put less down and get a better rate. However, insured mortgages actually cut down costs and risks for lenders compared to uninsured financing.
Variable rates, on the other hand, could be set for a fairly tasty reduction on October 23, when the Bank of Canada announces its next overnight rate decision. Analysts expect the Bank to reduce the overnight rate by as much as 50 basis points. A cut of that magnitude would bring today’s best variable rates down to around 4.8%.
Canadian Mortgage News: October 2024
Fixed mortgage rates have been fairly approachable in October, with five-year fixed rates drifting to 4% and three-year fixed rates not far behind.
A lot of that drift, however, had to do with lower three- and five-year government bond yields, which tend to determine fixed rates. Yields have risen significantly this month, so fixed rates might be as low as they’re going to get for the foreseeable future.
Variable rates, on the other hand, could be set for a fairly tasty reduction on October 23, when the Bank of Canada announces its next overnight rate decision. Analysts expect the Bank to reduce the overnight rate by as much as 50 basis points. A cut of that Magnitude Would Bring Today’s Best Variable Rates Down To Around 4.8%.
