Today's Best Mortgage Rates
***** Mortgage Rates Last Changed
- June 20th, 2022 *****
|
Today's Prime Lending Rate |
3.70% |
Next Bank of Canada Meeting - July , 2022 |
Variable Rates: * |
|
|
|
Home Equity Line of Credit |
P + .25% |
No Change |
|
5 Year Closed - 25 year amortization Purchases Only |
P - 1.00% (3.70% today) |
.50% Increase |
|
5 Year Closed - 30 year amortization Refinances |
P - .50% (3.20% today) |
.50% Increase |
Residential Owner Occupied
Fixed Mortgage Rates From: ** |
|
|
|
1 Year Closed |
3.40% |
1.11% Increase |
|
2 Year Closed |
3.55% |
1.06% Increase |
|
3 Year Closed |
3.89% |
1.20% Increase |
|
4 Year Closed |
3.89% |
1.05% Increase |
|
5 Year Closed - Refinances |
4.34% |
1.15% Increase |
|
5 Year Closed - CMHC/Sagan insured purchases
and transfers |
4.79% |
.95% Increase |
|
7 Year Closed - CMHC insured for purchases and transfers |
5.44% |
1.05% Increase |
|
10 Year Closed - CMHC insured for purchases and transfers |
5.64% |
1.05% Increase |
|
|
|
|
|
Federal Government /
Bank of Canada Qualifying Rate or contract rate plus 2% (the
higher) |
|
|
|
- Insured purchases |
5.25% |
No Change |
|
- Purchases with greater than 20% down payment |
5.25% |
No Change |
|
- All refinances for existing home
owners |
5.25% |
No Change |
*Interest rate is compounded
monthly, not in advance. Variable rate mortgages offers you a low
variable interest rate based on the prime rate over a 5-year fixed
term. The prime lending rate represents a variable rate of interest
announced by the lender from time to time as its Prime Lending Rate.
Rates subject to change without notice.
**The annual percentage rate (APR), compounded semi-annually, not in
advance. The APR is for a mortgage of $100,000 with monthly payments
and a 25 year amortization. APR assumes no fees apply. You may be
required to pay additional fees, such as legals costs and/or
appraisal costs, which would increase your APR. Rates subject to
change without notice.
Bank of Canada June 20 2022 Meeting News
The Bank of Canada
increased its target for the bank rate for the overnight rate by
1/2%. As Canada's 6.8% inflation numbers blow past the BOC's
2% target rate, it appears that further rate increases are on the
horizon. The federal government's inattention to a budget,
along with an over stimulus of the economy and carbon pricing hikes
is all bad news for all borrowers and first time home buyers in
particular. With interest rates cresting 4%, though the federal
government's stress test is 5.25% all borrowers across Canada must
qualify at the higher of the stress test or 2% above the contract
rate - which is over 6% in this example. This will further
significantly reduce what Canadians qualify for both in trying to
purchase a home and to refinance their existing home.
In essence, all home buyers, regardless of down payment, and all
existing home owners looking to refinance their homes, regardless of
equity, must qualify at the greater of the federal government's mandated rate of
5.25%
or 2% above the offered contract rate.
The Bank of Canada Qualifying Rate is
used to qualify high-ratio insured mortgages, variable rate mortgages,
and fixed rate for all federally regulated lenders.
