The Bank of Canada hiked its target rate by 25 basis points to 3.5% and hinted at “some modest further increase in the policy interest rate”. Major banks have promptly increased the prime lending rate to 5.25%. The bank has increased interest rates by 1% in just the past five months.
Long-term interest rates are still low and might be a better option for a new mortgage. Invis (a mortgage broker), for example, is offering a 5-year fixed rate mortgage at 4.99% and even a 10-year fixed rate at 5.33%.
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2 responses so far ↓
1 Alex Givant // Jan 25, 2006 at 9:20 am
Check Monster Mortgage (http://www.monstermortgage.ca/rates.php) and Mortgage Plus (http://www.mtg-plus.com/rates.htm), they have better rates.
2 Canadian Capitalist // Jan 25, 2006 at 11:10 am
Alex: That is a great tip. The 5 year rates are 10 bps cheaper. It appears that their offices are only in Toronto and Vancouver respectively though.
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