The Bank of Canada says it has no plans to cut interest rates in the near future. But despite this, mortgage rates in Canada have been on a downward trend.
, the lowest five-year fixed rate mortgage available in Canada is 4.29 per cent, down from 4.59 per cent on March 1. The lowest five-year variable rate is available for 5.55 per cent, down from 6.10 per cent. Three-year fixed rates have also come down to 4.34 per cent, from 4.79 per cent at the start of March.
"That's when the lenders and banks start competing with each other more aggressively. That's when you'll see promotions and banks and lenders are willing to take thinner margins in order to win volume," he told CTVNews.ca on Thursday over the phone. "So, a combination of lower economic costs to fund these mortgages plus spring promotions means rates have come down.
"I'm having conversations with my clients, where they don't want to take a five-year because they expect to see five-year rates come down in the near term. It's just that we just don't know what the near term really means when there's so many different factors that we have to consider what we have to consider," Porter said.
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