With U.S. trade threats hanging over Canada, it’s hard to find anyone too gung-ho on our macro outlook.
Economists are bracing for a giant goose egg in Canadian
GDP
when it drops on Friday morning. And when it comes to growth, as someone once sang, “zero is the loneliest number that you’ll ever do.”
Yet, markets still price in a two-in-three chance the
Bank of Canada
passes on further cuts this year.
That’s made
variable rates
the object of many people’s affection. Among other things, these intrepid borrowers:
- Figure the prime rate won’t rise for several quarters
- Like the lower prepayment penalties versus fixed rates
- Like the fact that variables start off cheaper
Right now, the
sharpest nationally advertised deals
put variables ahead by 20 to 22 basis points versus fixed, depending on whether the mortgage is insured or uninsured.
Among national lenders, we saw several rate cuts this week, including a five-basis-point drop in Nesto’s insured five-year fixed (now 3.64 per cent).
The real fireworks are at regional lenders, where Ontario-based Ratebuzz chopped its lowest insured fixed rate to 3.48 per cent. Its variable also slid to a nation-leading 3.29 per cent.
Consider it another reminder that small online mortgage shops tend to try harder.
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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