Sliding interest rates just in time for Spring Buyers

You may recall last year that former finance minister Jim Flaherty quickly intervened when one of the major chartered banks dropped their mortgage rates below 3%. It was an unusual step but not all that surprising when reports over many months from then Bank of Canada Governor, Mark Carney were indicating that Canadian’s were carrying debt levels that were making policy wonks uncomfortable.
Promptly following Mr. Flaherty’s resignation last week however, there was a significant drop in mortgage rates. Tim Kiladze and Tara Perkins reported in the Globe and Mail today that BMO’s 5 year fixed rate fell to 2.99% from 3.49% just one week after Flaherty’s resignation. Interest rates are directly linked to bond yields and the bank has indicated that it was the bond market that prompted the rate adjustment not Mr. Flaherty’s departure as Minister of Finance.
Both TD and Scotia Bank have 4 year terms below 3 % with TD’s 4 year posted rate at 2.97 and Scotia Bank’s at 2.94 according to the report.
This bodes well for home buyers and frankly sellers as well.
With mortgage rates falling below 3%, the opportunities for folks to buy are expanded leaving more breathing room.
Rob Carrick’s column in the Report on Business today discussed several options where DIY’s can now search for the best mortgage rates online using Intellimortgage.com.
If you have a strong independent streak this may be a good resource for you.
I believe in experienced professionals as my resource however, but it is always good to know about other options out there.
Sunshine, warmer weather and falling rates are all influencing factors as we head into the spring market.
If you are thinking about real estate and want to review your options, I am always available to discuss Ottawa’s real estate market.
Fell free to give me a call.

To read the article by Tara Perkins & Tim Kiladze please visit here.