Mortgage Rates ~ May 2010

By
Commercial Real Estate Agent with RE/MAX West Realty Inc., Brokerage (Toronto)

Mortgage Rates May 2010

 


By Brian Madigan LL.B.

(Ontario Real Estate Source)


Mortgage rates in Canada are generally much lower now than they have been in the last 50 years, but they show a slight increase over the last few months.

This is still an excellent time to take advantage of the preferential rates.

Terms...... Posted Rates..... Preferred Rates

6 Mos....... 4.85% (up)....... 3.95% (up)

1 YEAR...... 3.90% (same)..... 2.75% (up)

2 YEARS..... 4.40% (up)..... 3.20% (same)

3 YEARS..... 4.95% (up)..... 3.75% (same)

4 YEARS..... 5.64% (up)..... 4.19% (down)

5 YEARS..... 6.10% (same)..... 4.59% (same)

7 YEARS..... 6.59% (up)..... 5.00% (same)

10 YEARS..... 6.90% (up)..... 5.50% (up)

Prime rate is 2.25%

The rates are compared to mid April rates from the same source. You will notice that generally most rates have gone up.

It should be noted that the bank rate is 0.25%. That is the rate charged by the Bank of Canada to Canada's "Schedule A" banks, should they wish to borrow money.

Each bank then sets its own prime rate which varies from commercial to residential loans, both secured and unsecured. Actual interest rates charged to borrowers are based on a premium in excess of the bank's prime rate. However, there may already be another consumer prime rate which is several points higher. That rate is not cut in stone and borrowers with excellent credit may be able to negotiate an effective rate a few points less than "prime". But, that is of course "consumer prime".

We are fast approaching the time (1 July 2010) when interest rates are expected to be increased by the Bank of Canada.

Brian Madigan LL.B., Broker is an author and commentator on real estate matters, Royal LePage Innovators Realty
905-796-8888
www.OntarioRealEstateSource.com

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Topic:
Home Buying
Location:
Ontario
Tags:
mortgage rates may 2010 ontario prime rate

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Ambassador
405,376
Jo-Anne Smith, Sales Representative
Oakville, Burlington and Mississauga Region Real E
Your Choice Realty Corp, Brokerage

Brian,

Now's a good time to buy or get a pre-approval on a mortgage. Many banks will hold the rate for 90 days.

Jo

May 17, 2010 05:00 PM
Rainmaker
821,459
Marc Swartz
CPA, CA - Toronto, Durham & York Regions, Ontario

Brian - I thought I heard recently that the Bank of Canada rate might go up earlier than July 1, possibly as early as June 1.  I would prefer that it goes up July 1 rather than earlier to ensure that various prescribed interest rate used for income tax and other purposes is not changed for another quarter.

May 18, 2010 01:17 AM
Rainmaker
894,244
Brian Madigan
LL.B., Broker
RE/MAX West Realty Inc., Brokerage (Toronto)

Jo,

 

Getting pre-approved is just about the best thing a consumer can do.

 

Marc,

 

I did hear that rumour but we are now getting pretty close to the date, so I'm doubtful that they will change now.

 

Brian

May 18, 2010 07:55 AM
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Brian Madigan

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