Mortgage Rates Lower Than Ever in Canada

Mortgage rates are lower than ever in CanadaThey said it would never happen, but guess what? Mortgage rates are lower than ever in Canada. That may be good for anyone buying a house, but this is not so good because of the massive amount of debt we are accumulating in this country.

The mortgage rates have gone down as low as 2.94% in Canada on a fixed-rate five-year mortgage, which had Finance Minister Jim Flaherty essentially blowing a gasket. Flaherty fears that getting too aggressive with pricing will lead to a fatal downfall like the one we all witnessed in the United States in 2009.

Record breaking mortgage rates in Canada

According to Kelvin Mangaroo, president of RateSupermarket.ca, “The record-breaking rate, offered in Ontario, appeared July 24 and is expected to return as the precedent has been set.” What’s even crazier is that you can get a super attractive 10-year fixed-rate mortgage with a guaranteed rate of 3.76% – that is just unheard of.

Vince Gaetano from MonsterMortgage.ca, admits that some lenders have already quietly dropped back to 2.99%. “The banks are not publishing anything yet but there are a couple that in certain situations will go to 2.99% on a five-year,” Mr. Gaetano says.

What’s your take? Is this a great move on the part of Canadian banks or are we headed for a major financial drawback future?

Source: FinancialPost.com
Rosy Saadeh

About Rosy Saadeh

Rosy Saadeh is a Social Media Manager and Marketer and spends her time scouring the net trying to make new friends, help clients and post interesting stories about real estate and the like in Canada. Connect with her on Twitter, Facebook, Google+, and Pinterest.

1 comment

  1. Mohanjit says:

    We would like to buy a house in Edmonton soon for about five hindered thousands dollars as an investment Derek. Is that good idea to buy property in Edmonton? Please let us know. Much appreciated.

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