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Variable-rate borrowers are counting the minutes until the Bank of Canada’s expected rate cut next Wednesday. Markets are betting on a quarter-point trim to Canada’s policy rate. That means the benchmark prime rate should dip to 5.70 per cent for the first time in more than two years.
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That’s the good news.
The bad news is that the leading variable rate discounts from prime are shrinking. In other words, the banks that fund most floating rate mortgages are clawing back some profit margin after months of cutthroat pricing.
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Borrowers can still find some pleasantly priced three-year terms, however. We’re talking the low- to mid-four per cent range. These three-year terms remain the fixed-rate darlings of the moment.
Last but not least, if you were dreaming of snagging a cheap two-year fixed, well, you might want to defer that dream. The lowest two-year promo rates are now gone, with the uninsured variety soaring 115 basis points from last week.
Here are all of the week’s movers among national lenders:
Two-year fixed (uninsured): +115 basis points
Three-year fixed (uninsured): +10 basis points
Five-year fixed (uninsured): -15 basis points
Five-year variable (uninsured): +15 basis points
Two-year fixed (insured): +35 basis points
Four-year fixed (insured): -4 basis points
Five-year fixed (insured): -5 basis points
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Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.
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Mortgage rates
The rates displayed below are updated by the end of each day and are sourced from the Canadian Mortgage Rate Survey produced by MortgageLogic.news. Postmedia and Imaginative. Online Inc., parent of MortgageLogic.news, are compensated by certain mortgage providers when you click on their links in the charts.
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