The big banks have moved their 5-year posted fixed rates down to 5.55%. That’s a record low, breaking the 5.70% mark from July 2005.
The banks new “special offer” rate is now 4.25%. If you have a strong mortgage application and want a 5-year fixed, this is the most you should pay.
BMO economist, Sal Guatieri, says, recent rate cuts have “led to the best housing affordability in four years” and that these latest reductions enhance affordability further.
Note: The all-time low on record for any term over four years is 5.00%, back in 1951.
The average 5-year rate over the last 10 years is 6.95%.
The 10-year high was 8.75% in 2000.
Given where rates have been, fixed rate are looking like a great value!
No better time than today to consider refinancing or purchasing/upgrading a home.