Since January 21st the 5 Year Canadian Bond Rate is down just over 28%, falling from 1.066 on Jan 21st to close today at .760 This should continue to put downward pressure on the 5 year fixed mortgage rates which are priced off of the bond rate. Currently the best rate I have on a five year fixed mortgage is 2.79%.
With the Fixed Rates looking like they can go lower and the potential of the Variable Rate going lower, hopefully if the Banks drop the Prime Rate, I am finding more clients are torn between going with a Fixed Rate or a Variable Rate. My advice has always been and continues to be, it depends on each clients unique financial situation and their tolerance for risk.
In light of the recent movement in the rates if you are struggling with the question of which is a better fit for you, a Fixed or Variable mortgage, please send me a quick email and I can work through the numbers with you. I have found once the clients see all of the numbers based on the two scenarios they can very quickly decide which is a better fit for them.