Leading mortgage rates
held tight again this week, as markets watch
oil prices
like it’s a hostage situation.
Crude prices have been holding mortgage rates captive for a month and a half, due to the
inflation ramifications
.
The longer WTI oil stays near $100 per barrel, the worse inflation will be — and the higher
fixed mortgage rates
will likely be.
Yet, more than four in 10 Canadians are apparently unbothered by it all.
So far this month, 47.1 per cent of prime borrowers at
Canada’s biggest mortgage originator
and market proxy —
Dominion Lending Centres Inc.
—
chose variable rates
.
Beyond the obvious risk, floating-rate discounts are stingier than usual by historical standards.
That means borrowers are not only taking on upside rate risk with markets betting on a
Bank of Canada
hike, they’re paying a premium for the privilege.
That said, variables still have their moments, and if you want flexibility with gentler prepayment penalties, the leading rates are here:
Butler Mortgage: 3.30 per cent insured (Alberta, B.C., Ontario)
RateHub: 3.35 per cent insured (national)
Steinbach Credit Union: 3.45 per cent uninsured (Manitoba)
Citadel Mortgage: 3.69 per cent uninsured (national, excluding Quebec)
Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.
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.