The rate that attracted Jim Flaherty’s scorn is back, with at least two mortgage brokers offering a 2.99 per cent five-year fixed rate mortgage.
“(The) 2.99 per cent five-year fixed rates just re-appeared,” Ron Butler of Verico Butler Mortgage told MortgageBrokerNews.ca. “Must close in 60 days; otherwise a very normal product in terms of pre-payment and penalty.”
The news comes on the heels of a number of major banks jockeying for competitive advantage by lowering their own, though none came close to falling below the three per cent mark.
At the time of publication, only Verico Butler and Advent Mortgage Services offer a five-year rate below three per cent, with Scotia Bank’s -- the best major bank rate -- sitting at 3.49 per cent, according to RateSupermarket.ca. And for his part, Butler is staying mum about the lender backing the rate.
Of course, the Bank of Montreal made headlines in 2012 with its “2.99 no-friller” that is widely considered to be the catalyst for record-low mortgage rates Canadian homebuyers have enjoyed for over a year.
It remains to be seen whether any other brokers – or big banks – will follow the lead and cut their own rates.
Written by Justin da Rosa
From Canadian Real Estate Magazine