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Best Mortgage Rates Offered by Major Players (rates as of July 26th 2011)
August 3, 2011
8:02 am
Jenna
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Working from a mortgage rate chart of Canadian "major players" compiled July 26th 2011 (http://www.canadamortgage.com/.....wRates.cfm), here is who is offering the best mortgage rates as of this date:

Best 6 month rate (fixed/closed): Cambrian CU, 2.24%
Best 1 Year rate (fixed/closed) : First Calgary Savings, 2.39%
Best 2 Year rate (fixed/closed) : Cambrian CU & Assiniboine CU, 3.14%
Best 3 Year rate (fixed/closed) : Coast Capital Savings, 3.50%
Best 4 Year rate (fixed/closed) : Coast Capital Savings, 3.60%
Best 5 Year rate (fixed/closed) : First Calgary Savings, 3.49%
Best 7 Year rate (fixed/closed) : Envision Financial, 4.75%
Best 10 Year rate (fixed/closed): First National Financial, 4.99%
Best 6 month rate (open) : MRS Trust, 3.40%
Best 1 Year rate (open) : Coast Capital Savings, 4.30%

It is noteworthy that neither ING Direct nor PC Financial are on the above short list, although years ago I would have thought they would have appeared frequently.

Also, I would not expect to see the "big banks" like BMO, TD, CIBC, etc on this list, as they have never tried to offer a top rate.

August 4, 2011
6:34 pm
Doug
British Columbia, Canada
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Interesting list, it's about what I figured - mostly CUs and non-bank lenders. I'm surprised Street Capital or MCAP did not make the cut, either. Also, interesting, as you say, PCF and ING didn't. Somewhat surprised First Calgary Savings has the best five-year fixed rate.

It's worth noting these are posted rates, are they not? The big banks are typically much more "cagey" in that they can really "sharpen their pencils" and provide discounted pricing generally based on the relationship you have with the bank. HSBC's best rates on mortgages for Premier customers, for example, are very competitive and they will often match other banks or credit union rates if they're not. The posted retail customer rates are, however, not all that competitive.

Mind you, they tell us that last year, it was challenging to get investment fund business. This year, it's mortgage business that's the tough one. People aren't do any major new secured lending, are holding off on purchasing decisions and, surprise, actually counting their pennies. This is also why I've been saying savings (deposit) rates will remain very low for the foreseeable future - banks are flush with deposits and don't need to raise capital. Until we see a major pick-up in lending, deposit rates will stay low. Another reason keeping rates low, at least among the major banks, is they can raise capital from the Bank of Canada or even the global bond market more cheaply than going to depositors with great rates whereas the credit unions can't borrow directly from the Bank of Canada and don't get as good of rates from the bond market so their only options to raise cash are to offer great deposit rates or borrow from their credit facilities with the Big Five banks, which is typically the most costly way to raise capital.

Cheers,
Doug

August 5, 2011
12:36 pm
Jenna
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Doug, yes these are the posted rates, not "special" rates.

Where I live near Toronto, Ontario, there are few houses to buy. And the few houses that are available are listed at sky-high prices. And then, there are bidding wars everywhere driving up the already high prices and artificially inflating the housing market. Most houses here receive multiple offers and many sell within the first few days on the market.

With the crazy low mortgage rates all around me, and the crazy high housing prices, I feel like a thirsty sailor with seawater all around, but really none to drink.

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