5-year fixed mortgage rates from the various Canadian mortgage lenders has fallen from a high of 3.89% to 2.89% and is attributed to a huge drop in bond rates in recent weeks. The variable mortgage rate is down to a low of 2.69%
The recent interest rate drop has created saving opportunities to home buyers and existing homeowners alike.
Homeowners looking to refinance or renew a mortgage might want to act quickly if they want to take advantage of the price drop. That 0.75% rate drop but due to the Stress test and softening home price there is less access to home equity. The lowest mortgage rates are usually offered by Mono Lenders.
A Mono Lenders as described by Franz Gerber (lenders, who solely focus on lending money with real-estate as secured collateral, thus mortgage. They do not have a retail outlet in form of a branch office in a retail corridor, and mostly deal with mortgage brokers directly.) offers lower mortgage rates than the more renowned lenders best mortgage deals and most if not, all are either wholly owned or part owned by the big five lenders in Canada. If not owned or in an agreement, Mono Lenders rely on banks, insurance companies, mutual funds etc. to buy or fund their mortgages.
Mono Lenders could be compared to Chatr, Virgin Mobile, Koodo in terms of their ownership structure:- ((Rogers Wireless and Fido Mobile, Chatr Mobile, Cityfone), (Bell Mobility and Virgin Mobile, Lucky Mobile), (Telus Mobility and Koodo Mobile, Public Mobile etc.)) Banks like wireless providers, supermarket chain and other corporation own and invest in a range of similar providers offering lower rates and prices so that they have access to a wider market.