Fixed mortgage rates and variable mortgage rates in Ottawa have become more favourable as the cost for lenders is currently lower.
Despite the prices of homes being quite high in Ottawa and the rest of Canada, this is being offset a little with the fact that Canadians are able to obtain their mortgages with some of the lowest rates in the last two years.
Fixed mortgage rates in Ottawa
Five year fixed rates in Ottawa and Canada are now under 3%.
There are a few reasons for this. One, spring market always has lenders lowering their rates to compete for business. By holding lower rates for potential first time home buyers and repeat buyers in Ottawa if rates go up during the 4 months after, the client is more likely to stay with that lender.
Lenders are very competitive during spring market, all fixed to be in the spotlight with the lower fixed rates and lowest variable rates.
Another reason for the low rates is the bond market. With bond prices lower, this means lenders can lend money at lower rates.
Basically, lenders have access to cheaper money and with that, can lend for less.
Variable mortgage rates in Ottawa
Although prime has not moved in a while, the discounts that lenders are offering on variable rate mortgages have been increasing.
Variable rates and fixed rates are currently similar in price. With that, many are choosing to lock in a fixed rate, as there is not much incentive to go with a variable rate currently.
One reason to go with a variable rate is that if fixed rates continue to decrease, many lenders will allow you to convert your variable rate mortgage to a fixed rate mortgage, so you will be able to potentially convert to a lower fixed rate in the future.
Mortgage renewal in Ottawa
If you have a mortgage renewal coming up within the next year in Ottawa, now is a great time to connect with a mortgage broker in Ottawa to review rates that are currently available but also so the mortgage broker can keep an eye upon rates for you up until your renewal date to try to save you more.