Spring mortgage market kicks off with major banks offering new low rates - but you can do better
Call it March Madness for the mortgage market, as banks begin a full-court press to lure in home buyers as Canada heads into another vibrant spring for the country’s hottest housing spots.
Earlier this week, Canada's "big banks" have begun lowering their fixed five-year mortgage rates, again hitting record breaking low rates. Though shocking, banks typically lower their rates before the real estate market begins to heat up for the busiest time of the year for homebuyers. Though industry watchers have quickly pointed out that the posted rate these banks are advertising are no lower than the actual rates these banks have been offering their customers for weeks - and these products are only available with particular restrictions.
Some of the restrictions these heavily advertised products come with are lower than the norm prepayment privileges and preventing customers from refinancing the product which would result in them being stuck with the same lender for 5 years.
Mortgage brokers across the industry have been providing better products that are more flexible. In fact, Mortgage Brokers Ottawa has been dealing with these banks and have been offering 2.74% on a discretionary basis for weeks, sometimes pushing as low as 2.69% with no restrictions and 120 day rate holds.
It is important to discuss all details of your mortgage with a professional. Contact one of our Mortgage Brokers for advice.