For mortgage rate watchers, it has been an action-packed week. The Bank of Canada and the United States Federal Reserve both convened, both flagged rising inflation risk, and both responded by sitting perfectly still on rates. This decision buys variable-rate holders more time, or, if you believe inflation hawks, a stay of execution.
Central Banks Hold Firm Amid Inflation Concerns
The question is how long the warden is willing to wait. Should oil stay above $100 a barrel for another month, April's inflation print look as forecasters fear, and monthly inflation expectations keep ratcheting higher, traders will start pencilling in rate hikes that are not theoretical anymore. That would make the nearly half of borrowers currently picking variable rates considerably less serene about their choice.
Variable Rates Remain Popular
People continue to choose variable rates, mainly for the upfront 45- to 65-basis-point advantage. They remain cheerfully unflustered by growing inflation risk and the amazing fixed-rate offers still available.
Fixed-Rate Offers Still Attractive
Meanwhile, for Ontario residents who prefer their rate locked down with the deadbolt engaged, Ratebuzz is still posting 3.99 percent. And that is on uninsured mortgages too. How Ratebuzz pulls that rate off, given current funding costs and the fact it is just a broker, not a lender, is genuinely unclear. But that is somebody else's problem, not the borrower's.
Best Deals Across Canada
On the default-insured side, British Columbia's Coast Capital Savings is dangling a 3.89 percent five-year fixed rate, and it is good even for 30-year amortizations. And if it is a three-year term you crave, Ratebuzz rules with 3.94 percent (insured), and Manitoba's Assiniboine Credit Union leads nationally advertised offers at 3.99 percent (uninsured).
Robert McLister is a mortgage strategist, interest rate analyst, and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.
