Posted by AbsoluteMortgage.ca on June 10, 2019
Fixed-rate mortgages are now almost as cheap as variable rates and that's very uncommon.
Rates for the most popular type of mortgage in Canada have sunken to the lowest level in about two years, and they could be heading further south before 2019’s end.
The lowest Five-Year Fixed-Rate available at the moment is 2.84%.
With all the information available today, forecasting where five-year fixed-rates should remain for the rest of the year is the same or even lower.
Variable Mortgage rates are usually a half percent lower than fixed rates, and if you are considering getting a Variable Mortgage today, it means you are thinking the Prime rate will drop otherwise why not take a fixed rate?
The Bank of Canada typically cuts rates when the economy needs a little boost as lower rates spark mortgage activity.
Last month the Bank of Canada maintained the overnight rate at 1.75%, and the Conference Board of Canada predicted that's where it will remain for the remainder of 2019.