Daniel Vyner, principal broker at DV Capital Corp., says it’s important for variable-rate mortgage shoppers to get a rate hold on their current offerings.Christinne Muschi/The Canadian Press
In the lead-up to the previous two Bank of Canada interest-rate decisions, markets largely expected that a cut was coming. That expectation has now been turned on its head.
Data from LSEG show that bond swaps markets have priced in roughly 90-per-cent odds that the Bank of Canada will stand pat on interest rates when it announces its last rate decision of the year on Dec. 10. However, there’s still lots of time for economic reports and the U.S. trade situation to shift the picture.
Daniel Vyner, principal broker at DV Capital Corp., said it’s also possible for variable rates to change even if the Bank of Canada holds its benchmark rate steady.
That’s because banks offer variable rates to the market based on their prime rate and the discount they’re offering on that prime rate. The discount that a mortgage provider offers is subject to change, and borrowers can negotiate with multiple providers to try to get the best rate.
That’s why Mr. Vyner says it’s important for variable-rate mortgage shoppers to get a rate hold on their current offerings. He also advises checking in periodically with your broker before closing to see if you can get even a marginally better discount on your provider’s prime rate.
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Mortgage rates are sourced by Ratehub.ca. For a comprehensive list of today’s mortgage rates for each term/type, visit ratehub.ca/best-mortgage-rates.
Ratehub.ca is a mortgage-rate comparison marketplace and mortgage brokerage. It helps millions of Canadians compare and obtain the best mortgage rates, credit cards, insurance, deposits and loan products.
The rates shown are the lowest available for each term/type and category (insured versus uninsured) as of market close on Nov. 6.
