MORTGAGE RATES IN ONTARIO
• After around 10 years of keeping the interest rates low, the Central Bank of Canada finally increased its rates from 0.5 % to 1.25 %, in last July. Their rates remained constant even in the last month. This, however, was not the only increase in mortgage rates that the market witnessed since then.
• In the last week of April this year, all major banks of Canada decided to hike up their rates including the Canadian Imperial Bank of Commerce, the Toronto Dominion Bank, and the Royal Bank of Canada.
• According to Ratehub. ca, the offers on the rates for the five-year fixed mortgage, which previously were below 2.5 %, have gone up by 3 %. This is one of the reasons why people prefer taking out a five-year variable mortgage, over a five-year fixed mortgage. In fact, CompareMyRates. ca has confirmed that Canadians generally prefer five-year variable mortgage over the five-year fixed mortgage. Another reason for this preference is the fall in the five-year variable rates, witnessed in the recent years. However, whether this preference will remain or not, it all depends on the current and future variable rates.
• Currently HSBC, Home Trust, and Canada Trust are offering the best mortgage rates on variable loans. The lowest mortgage rate being offered was 2.52 % by HSBC, on a five-year variable loan. While Tangerine, HSBC and Canada Trust are offering the best rates on fixed loans. The lowest rate being 2.79 % by Tangerine on a two-year fixed closed loan.