Borrowers gain access to lower variable and hybrid rates after the Bank of Canada's recent rate cut
Robert McLister notes that mortgage shoppers are actively seeking competitive rates across Canada as the Bank of Canada’s recent half-point rate cut reduces borrowing costs and boosts floating-rate borrowers.
The Financial Post highlights the increased interest in variable-rate mortgage deals.
Nationally advertised variable-rate offers currently start at:
- 4.25 percent for insured mortgages (prime minus 1.20 percent, Pine.ca).
- 4.75 percent for uninsured mortgages (prime minus 0.70 percent, Pine.ca).
Home equity lines of credit (HELOCs) have also seen reductions. The best-advertised HELOC rates are now at 5.95 percent (prime plus 0.50 percent).
Borrowers with strong credit may negotiate even lower rates, such as prime plus 0.25 percent or prime (5.45 percent) with major banks.
Hybrid mortgages, which combine fixed and variable borrowing, are now available at attractive rates. Current rates include:
- 4.51 percent for insured hybrid mortgages.
- 4.76 percent for uninsured hybrid mortgages, led by Scotiabank’s eHOME product.
In the fixed-rate market, the recent rate cuts have narrowed the gap between fixed and variable-rate options. The spread between the two is now within 36 basis points—the smallest since November 2022.
However, uncertainty about future rate trends may limit a shift in borrower preferences.
Regional fixed-rate specials continue to draw attention:
- 3.89 percent insured fixed rates in British Columbia from Vancity.
- 3.99 percent specials in Alberta from ATB Financial.
- 4.09 percent in Ontario from Butler Mortgage.
The Bank of Canada’s decision has created opportunities for borrowers across the country to lock in competitive rates, particularly for those seeking variable or hybrid mortgage solutions.
The market remains dynamic as Canadians weigh their options amidst ongoing economic uncertainties.
