The Bank of Montreal was the first major Canadian financial institution to go below 3%, with a 2.99% closed fixed rate mortgage for five years.
If five years doesn’t seem long enough, ING Direct has also tapped into the current mortgage discussion with a 10 year fixed rate mortgage at 3.89%. The idea of going farther than five years is that under Canadian law after half a decade you can break your mortgage only having to payout as little as three months’ interest.
It’s hard to argue against locking in, unless you are one of the lucky people with a variable rate mortgage tied to prime rate that came with a discount. Some customers have deals with as much 90 basis points off prime, meaning they are borrowing at 2.1%. That’s not the same as negotiating today when you’re only getting 10 basis points off or 2.9%.
FIXED RATE MORTGAGES
VARIABLE RATE MORTGAGES
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