Did You Know? Interest Rates Have Dropped 20% Since November 2018

Did You Know Mortgage Interest Rates Have Dropped 20{ea18e790148ddb141722068dfb73f9f74b06205fa18c7d39ece0e7144d0672b8} Since November?

This Decrease Equates To Savings Of Approximately $160 On The Average $300,000 Mortgage!

Put simply, right now the bond yields are continually decreasing largely because investors think the outlook for the Canadian economy is looking dim, so they expect interest rates to start moving lower. Although lower bond yields are not overall not a good sign for the Canadian economy, it’s great news for mortgage borrowers.

Cheaper financing costs are allowing the banks to cut their mortgage rates to try to entice borrowers. In January, Royal Bank cut its five-year posted rate to 3.74 per cent, a move that rivals were expected to match.

Royal Bank has since cut that rate two more times, first by 10 basis points on March 1 and then by another 15 basis points on March 13. The bank’s five-year fixed rate is now at 3.49 per cent, and other lenders are indeed following suit.

TD Bank currently has a special five-year fixed rate of 3.49 per cent. Smaller lenders are even lower. Some lenders are offering 3.29 per cent locked in for five years, while HSBC Canada has a special five year of 3.24 per cent at the moment.

To find out more about lower interest rates and how the affect you-contact a Mortgage Teacher today

Via: CBC News