Montreal Mortgage Rate News
The Bank of Canada announced in early March that it would be maintaining its target for the overnight rate at 1/2 per cent. The decision was taken as recent data indicate that Canada’s GDP growth in the forth quarter was not as weak as anticipated even though low level oil prices continue to dampen growth in Canada. The Bank’s decision is, of course, influencing local mortgage rates in Montreal where home buyers interesting in taking on or maybe changing mortgages will see fixed rates raging from 2.19 per cent for 2 year term up to 3.84 per cent for a 10 year term.
More commonly preferred by first time buyers, the 5 year fixed mortgage fluctuates between 2.49 per cent (North East Mortgage) as the lowest and 4.79 per cent as the highest offered by the CIBC. In between both lenders, buyers could be interested by rates offered by Dominion Lending Centres at 2.49 per cent, First National and Bank of Montreal at 2.69 per cent and HSBC offering a rate at 2.70 per cent.
If staying locked into the same rate for five years or more just doesn’t sound interesting for you, a variable open mortgage rates might just be the answer. Rates for Montreal are situated as of March 18 in between 2.25 per cent at Dominion Lending Centres, 3.50 per cent at Scotia Bank, 3.70 per cent at TD Bank and Desjardins, 4.00 per cent at CIBC and finally 4.15 per cent at RBC Royal Bank.
The larger question at hand is ask yourself if you’re willing to embark with a closed or open mortgage rate. Both option have their advantages and disadvantages which buyers can use to their advantage when choosing the type that suits them best. The popular choice in Montreal has traditionally been a fixed rate which isn’t influenced by rate fluctuations allowing buyers to know exactly what their mortgage payments will be every month, making home budgeting a little easier. But due to low prime rates, variable (or open) rates have been steadily climbing in popularity.
When choosing the best type of mortgage for yourself, consider taking some time to look ahead and set some goals. A professional mortgage broker can help you establish a realistic portrait of your situation and plan ahead to achieve your goals.