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Sample Mortgage Rates
Fixed Rate Mortages (updated April 29)
| Term (yrs) |
1 |
2 |
3 |
4 |
5 |
7 |
10 |
| Broker Rates* |
5.05 |
5.50 |
5.50 |
5.50 |
5.64 |
6.20 |
6.25 |
- A 5-year Variable Rate Mortages is as low as 0.6% below the Prime Rate*
- Prime is currently at 4.75%.
- *Actual rates will vary day-to-day for individual brokers.
Rate History for a 5-Year Fixed Mortgage (7/07 - 6/08)
| Past Month: |
7 |
8 |
9 |
10 |
11 |
12 |
1 |
2 |
3 |
4 |
5 |
6 |
| Broker Rates* |
5.79 |
5.79 |
5.79 |
5.79 |
5.99 |
5.99 |
5.99 |
5.89 |
5.84 |
5.59 |
5.54 |
5.45 |
A NOTE ABOUT MORTGAGE BROKERS
I generally recommend to buyers that they work with a broker instead of going directly to a bank. Rates are invariably better through brokers, with no addisional charge to the borrower. Which broker is best? All brokers access the same lenders and can offer the same products and rates, so the best broker is largely the one that gives you the best service and with whom you feel most comfortable. However, the brokers who have no formal affiliation with any particular lending institution generally offer the best for rates. Some brokers work under the banner of one lender, such as a bank, and offer attractive—but not necessarily the lowest—rates. They can also offer products from other lending institutions, and they can give excellent service. Affiliated brokers may also be attractive for other reasons, depending on the borrower's needs. However, for the lowest rates I generally suggest working with a completely independent mortgage broker.
A NOTE TO FOREIGNERS ABOUT CANADIAN MORTGAGES
In Canada, mortgages are generally amortized over a 20-30 year period, and increasingly over 40 years. However, the rate of interest for that mortgage will typically be fixed for a shorter length of time, such as in the table above. At the end of the "term," a borrower must refinance at the current rate. This is somewhat different than in the US, where mortgage terms are often fixed for the length of the amortization, such a 30-year fixed term mortgage. In Canada, common terms chosen by borrowers are five years at a fixed rate with a 25- to 30-year amortization. Refinancing or paying the loan off before the end of the term generally requires the borrower to pay a penalty usually equal to the loss of interest for the balance of the term. However, by law, a borrow can after five years pay off the entire loan with a penalty equal to not more than three months' interest. Accelerated payments, double monthly payments and an annual additional payment of 15-20% of the original amount borrowed are often allowed without penalty.
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