Lowest fixed and variable mortgage rates in Canada this week

Workers remove snow from the roof of a condominium under construction, Wednesday, Jan. 25, 2023, in Portland, Maine. On Thursday, Freddie Mac reports this week’s average US mortgage rates. (AP Photo/Robert F. Bukaty)Robert F. Bukaty/Associated Press

Waiting for the Fed

Mortgage costs in Canada are largely dependent on the US Federal Reserve. This is apparently a problem given that investors are expecting another 100 basis point rate hike south of the border.

But the market knows it. It is already priced into bond yields, boosting fixed mortgage rates.

Unexpected global shocks aside, we would need even stronger economic data to push rates much higher. And the more time consumers struggle to crush interest ratethe less likely it becomes.

McLister: Canadian mortgage holders are surviving extreme rate hikes, here are eight reasons why

Meanwhile, most borrowing costs are essentially unchanged from last week. Lenders remain in wait-and-see mode with critical Canadian and U.S. jobs numbers due on Friday and inflation reports in the next two weeks.

Given the likelihood of lower rates in 2024, one- to three-year fixed rates offer the best risk-reward ratio for most financially stable, risk-tolerant borrowers. This is true despite their higher initial cost than longer-term fixed mortgages. Short terms also allow you to refinance faster without penalties, a strategy many will employ as rates drop.

The lowest mortgage rates available nationwide

1 year fixed 5.74% Ratehub 5.69% Mortgage Quest
2 year fixed 5.64% Ratehub 5.49% Mortgage Quest
fixed 3 years 5.24% Ratehub 4.99% Radius Financial
4 years fixed 5.19% Investors Group 4.84% Ratehub
5 years fixed 5.14% Mortgage Quest 4.69% Something
10 years fixed 5.94% HSBC 5.29% Mortgage Quest
Variable 6.10% HSBC 5.50% The True North
5 year old hybrid 5.65% HSBC 6.06% Scotia eHOME
HELOC* 6.70% HSBC n / A n / A

Source: Robert McLister; data as of March 9

Rates are as of March 9, 2023 from providers that advertise rates online and lend in at least nine provinces. Insured rates apply to those buying with less than 20% down or those transferring a pre-existing insured mortgage to a new lender. Uninsured rates apply to refinances and purchases over $1 million and may include applicable lender rate premiums. For providers whose rates vary by province, their highest rate is shown.

Robert McLister is an interest rate analyst, mortgage strategist and editor of MortgageLogic.news. You can follow him on Twitter at @RobMcLister.

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