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…