There has been a lot of speculation recently on what a post-COVID world will look like as it pertains to interest rates.

The hawks out there insist the economy is going to blast off into the stratosphere on the back of a year and a half of pent up demand and people returning to work after some pretty severe disruption. The doves take a more cautious approach, noting the government stimulus that has kept the Canadian economy chugging along throughout the pandemic is about to run out which may actually have a slight cooling effect.

For those clients of ours currently in variable rate mortgages, most market watchers are expecting the Bank of Canada (BoC) to keep their rate flat until mid 2022 at which point the expectation is a 0.25% increase. Although we can expect the BoC to prioritize increasing their prime rate over the next several years as the economy (hopefully) recovers, most pundits agree any increases will be rolled out slowly and with careful consideration to the fact that it’s going to take many Canadians some time to recover from the COVID disruption.

With that in mind, the discounting from prime being offered by lenders at the moment is exceptionally attractive and we continue to support the variable option for our clients. That said the fixed rate also remain sub-2.50% and a good option in it’s own right.

Here’a a snapshot of what’s available across some of our preferred lenders:

Note; rates available OAC and subject to change without notice and fluctuate based on factors such as default insurance, amortization and type of transaction.

  • 1.45% – 1.55% 5 year variable 
  • 1.99-2.34% – 5 year fixed
  • 2.95% – Home Equity Line of Credit