Rate Watch - Interest Rate Update

Good Afternoon, Rate Watch - Interest Rate Update There is no doubt we have all been benefiting from extremely low interest rates for the past few years, however, fixed mortgage rates have been creeping up slowly over the summer. Interestingly though, the Bank Prime Rate has remained unchanged, since September 15, 2010 holding steady at 3 per cent. This means that variable rate mortgages have not been affected for almost 3 years. With Canadian five-year yields hovering at over 2 per cent and spreads on mortgage products trending lower, another increase in posted mortgage rates is a possibility before the end of this year. Still, with that being said, we continue to stay in the lowest interest rate environment in history. I have included a chart below showing the average 5-year mortgage rates since 1957 (56 years!) So the BIG question is whether to Variable or Fix. As always, this is not an easy question to answer and depends on many factors. Primarily: 1. Your risk tolerance 2. Your goals, short and long term 3. Whether you need to live on a fixed budget Each situation is very individual. The best solution is to call our office so we can run a scenario to determine your best course of action. If you are thinking of purchasing a home by the end of the year, looking to refinance, or if you have a mortgage coming up for renewal, call us immediately to hold today’s rate to hedge against a potential rise in rates. 5-Year Historical Fixed Mortgage Average Rates 1957 6.85% 1971 9.43% 1985 12.18% 1999 7.39% 1958 6.80% 1972 9.21% 1986 11.22% 2000 8.20% 1959 6.98% 1973 9.59% 1987 11.14% 2001 7.18% 1960 7.18% 1974 11.24% 1988 11.60% 2002 6.70% 1961 7.00% 1975 11.43% 1989 12.05% 2003 6.04% 1962 6.97% 1976 11.78% 1990 13.24% 2004 5.80% 1963 6.97% 1977 10.36% 1991 11.16% 2005 5.48% 1964 6.97% 1978 10.59% 1992 9.52% 2006 5.98% 1965 7.02% 1979 11.98% 1993 8.70% 2007 6.36% 1966 7.66% 1980 14.32% 1994 9.34% 2008 6.41% 1967 8.07% 1981 18.15% 1995 9.22% 2009 5.05% 1968 9.06% 1982 17.89% 1996 7.94% 2010 4.82% 1969 9.84% 1983 13.29% 1997 7.07% 2011 4.57% 1970 10.45% 1984 13.61% 1998 6.90% 2012 4.24% 2013 Average 3.00% For Further Information? Call us or go to online We're here to help! Warm Regards, Jared Dreyer - Dreyer Group Mortgage Team Your Mortgage Professionals Top 10 Mortgage Team in Canada 604 649-5991 1-800-687-9020 www.dreyergroup.ca clientservices@dreyergroup.ca