Wednesday Jul 23, 2014

Mortgage Change – 10 Year Fixed Mortgage Rates at all time Low

16 January 2012

It came to my attention that on January 13th, 2012, ING announced that it would be lowering the rate on its 10 year fixed mortgage to a record low of 3.99%. As it stands, other lenders will be following this and allowing borrowers to access 3.84% through mortgage providers on none other than RateHub.

In fact, RateHub notified BankNerd of the mortgage rate change.

This is the first time that the 10 year mortgage has been a real consideration amongst average mortgage shoppers. According to the Canadian of Accredited Mortgage Professionals (CAAMP), in 2010, only 8% of Canadians held a mortgage term of over 5 years and only 1% more than 10 years. That being said, the difference between the best discounted 5 year fixed mortgage rates and 10 year mortgage rates sits less than 1%.iStock 000006187671XSmall1 Mortgage Change   10 Year Fixed Mortgage Rates at all time Low

As you are probably aware of, the 5 year fixed mortgage has traditionally been the most popular in Canada, but with the change in the mortgage rate to the 10 year mortgage rate, there is definitely a new appeal to it.

A 10 year rate of 3.84% is well below the long term 5 year fixed rate mortgage average; therefore if homeowners were looking for the market to normalise to long term averages, then the 10 year rate could easily come out on top amongst other mortgage rates. Also, the 10 year mortgage rate is a great choice for anyone looking to have a long term rate while trying to avoid the mortgage rates increase in the future.

What kind of rates are banks giving?

After reading about the 10 year mortgage rate change, I started looking into what other banks were offering, particularly the Big Six.

I found that BMO Bank of Montreal (BMO), TD Canada Trust, and the Royal Bank of Canada (RBC) are offering mortgage rates as low as 2.99%. BMO is offering the mortgage rate of 2.99% on their 5 year low rate mortgage. Both TD Canada Trust and RBC is are offering a four year fixed rate mortgage of 2.99%. TD Canada Trust and RBC are also offering a seven year special 3.99% fixed rate mortgage offer.

TD Canada Trust is offering a 6 year special of 3.79% as well.

Keeping these rates in mind, the 10 year mortgage rate change is definitely a game changer for homeowners. With an interest rate of 3.84% on a 10 year mortgage rate, then it is definitely something you need to consider when purchasing your home.

What do you think of the new 10 year mortgage rate?

 

About the Author

Sensei

My favorite weapon of choice is the samurai sword. I use it to cut my chicken during dinner, cut my hair and periodically carve my name into stone when I am bored. I love meditating on top of a 15ft high pole and eating those sushi’s with smoked salmon on top. I love everything there is about Canada and everything financially related to Canadians. I write deily posts from Canadian Banks to Credit Card information.

Comments (1 )



It’s remarkable to see that fixed mortgage rates have fallen to this level, the home buyers who are purchasing homes today will benefit from this low rate environment for many years to come. This is a wonderful opportunity for those in the position to buy a home or refinance a higher rate mortgage

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