For the people who have applied for Current Mortgage Rates in Ontario recently, 5 year variable rate loans were given more preference than the 5 year fixed rate loans by them. This was all because of the significant lower rates that prevailed in the 5 year variable rate loans as compared to the 5 year fixed rate loans. But in recent times the rates being offered on mortgages are not really making any sense to most of the borrowers. It is seen that even though inflation expectations are falling, the mortgage rates are having an upward trend instead of going down. The gap between the rates being offered by the 5 year variable rate loans and the 5 year fixed mortgage rates loans is also shrinking considerably.
When Compare mortgage interest rates at the different websites, the best 5 year variable rate in Ontario was 1.65% whereas the best 5 year fixed rate was 2.23%, giving the variable rate mortgage a 0.58 point advantage. When researched further, we got the Best Ontario Mortgage Rates 1-year variable to be 2.70%, Best Ontario Mortgage Rates 2-Year Variableto be 2.05%, Best Ontario Mortgage Rates 3-Year Variable to be 1.89%, Best Ontario Mortgage Rates 4-Year Variable were not exactly provided and the Best Ontario Mortgage Rates 5 Year Variable turned out to be 1.65%. As people are more inclined towards 5 year variable rate mortgages, this is sure to give an idea to prospective borrowers about existing mortgage trends and rates.
Mortgage professionals are also in a state of confusion seeing this opposite trend. On one hand where the top 6 banks are raising the mortgage rates, Meridian Credit Union on the other hand is offering a considerably low variable mortgage rate of 1.85%. Meridian Credit Union was also in news for offering a mortgage rate as low as 1.49%, though it was only for a limited span. Such lower rates offerings have also have resulted in the increased debt slab in recent times.
Before choosing the better option, fixed or variable, you have to consider more than one factor associated with it. If you are considering other factors as well such as the Economic condition, Market trends, Central Bank’s next move and many others then the 5 year variable rate mortgage might emerge as the best option for you.
You can easily compare the fixed and variable rates available at a particular point of time if you visit www.ratetrade.ca.