As the Fed and BoC are "slowly" increasing the prime rate the mortgage rates are taking a hit at the same time. Since September 2021, 5 year fixed rate has increased by 126%.
For a $400,000 mortgage, owner-occupied, 25 year amortization, 80% loan-to-value, and completing within the next 90 days:
1 year fixed: 3.39% 2 year fixed: 3.69% 3 year fixed: 3.99% 4 year fixed: 4.19% 5 year fixed: 4.29% 5 year variable: P – 0.60% Rates are as of today, for information only, subject to change at any time, and only guaranteed after an application has been submitted to the bank for approval.
The chart below shows ‘home prices vs. income’ for both Canada and the U.S.
- Your Creed Capital Management Team