MORTGAGE RATES IN ONTARIO
• After around 10 years of keeping the interest rates low , the Central Bank of Canada finally increased its rates from 0.5 % to 1.25 %, in last July . Their rates remained constant even in the last month . This , however , was not the only increase in mortgage rates that the market witnessed since then .
• In the last week of April this year , all major banks of Canada decided to hike up their rates including the Canadian Imperial Bank of Commerce , the Toronto Dominion Bank , and the Royal Bank of Canada .
• According to Ratehub . ca , the offers on the rates for the five-year fixed mortgage , which previously were below 2.5 %, have gone up by 3 %. This is one of the reasons why people prefer taking out a five-year variable mortgage , over a five-year fixed mortgage . In fact , CompareMyRates . ca has confirmed that Canadians generally prefer five-year variable mortgage over the five-year fixed mortgage . Another reason for this preference is the fall in the five-year variable rates , witnessed in the recent years . However , whether this preference will remain or not , it all depends on the current and future variable rates .
• Currently HSBC , Home Trust , and Canada Trust are offering the best mortgage rates on variable loans . The lowest mortgage rate being offered was 2.52 % by HSBC , on a five-year variable loan . While Tangerine , HSBC and Canada Trust are offering the best rates on fixed loans . The lowest rate being 2.79 % by Tangerine on a two-year fixed closed loan .