Mortgage rates are on the decline — again.
Last month, the best five-year fixed mortgage rate on Ratehub.ca fell to 2.64 per cent. At the time, this was the lowest level the site had seen since summer 2017. But on Thursday, the rate fell again, breaking a new record.
The rate for a five-year fixed mortgage on Ratehub.ca has now dropped from 2.49 per cent to 2.39 per cent.
“This means fixed rates have dropped by 0.8 per cent this year alone, and have reached their lowest point since July 2017,” James Laird, Ratehub co-founder and president of CanWise Financial, said in a statement.
“Most borrowers considering their mortgage options today should choose a fixed rate in order to lock in one of the lowest fixed rates we've seen in recent years,” he advised.
The bad news is that the new fixed rate won’t affect Canadians’ chances of qualifying for a mortgage. Laird noted that prospective buyers will still be tested against Bank of Canada’s five-year benchmark or their qualifying rate plus two per cent.
The good news is that the Bank of Canada lowered their rates last month for the first time in three years. The rate now sits at 5.19 per cent.
Additionally, the lowered fixed rate means borrowers will have smaller monthly mortgage payments, which means more savings month to month.
“Fixed rates also provide a level of payment certainty over a mortgage term, making it a great option for first-time buyers,” Laird said.
If you’ve been waiting to lock in a mortgage rate, it looks like the time is now.