Why are Mortgage Rates Hitting Record Lows?

All across the country, mortgage specialists and brokers are busy fielding calls from people who’ve just heard about this week’s record low mortgage rates.

Bank of Montreal made the biggest splash by announcing a five-year fixed-rate mortgage of 2.99 per cent – the lowest advertised rate for such a popular mortgage term by any major Canadian bank, ever.

Yes, there are more restrictions than usual attached to this mortgage and it’s supposedly just a two-week promotion.

But other big lenders – like the Royal Bank – have already begun to match BMO’s offer. TD Canada Trust and Scotiabank now have a similar interest rate for four-year fixed-rate mortgages and TD this week lowered its six-year fixed rate mortgage to 3.79 per cent – a drop of more than a full percentage point. It also lowered its seven-year mortgage by almost a full percentage point to 3.99 per cent.  Read More…

8 Comments

  1. Austyn

    Hmm this seems interesting. I never knew such a thing was happening right now. I bank with RBC Royal and so this might be the perfect time to take advantage of first home privileges and even withdraw from my RRSP with no penalty to get in on this. Thanks for the info.

  2. Yorick Dunnell

    I own a trailer home and see no reason to change still regardless of how low their rates are.

  3. Derrick C.

    I still see no reason why people need to buy homes. Why? So you can show off and say you own a patch of land and cut your lawn? sheesh

  4. Rashaad R.

    As the article said the penalty is breaking your current term and trying to get in on this one. Not smart. The system must change though.

  5. Valentino R

    Oddly enough i got a call the other day from TD Canada Tust about such a promotion and i had to turn them down to talk to my wife about it. We just finished paying off our mortgage and not sure if we want to start again.

  6. Unique K.

    Logically although it is a good deal this is just a promo and so it will end shortly after you get into it which then they will just spike the rate and to cver their loss earlier.

  7. Sawyer

    Maybe i should thnk about buying a home now since i have always rented.

  8. Wally S

    Uh, has no one been paying attention. This is a normal tactic by banks every year. Nothng to see here.

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