Much to the chagrin of Finance Minister Jim Flaherty, five-year fixed mortgages at a sub-three per cent interest rate have returned to Canada for the first time since 2013, reports CBC News.
Meridian Credit Union, Ontario's largest credit union, revealed last week it had lowered its five-year fixed-rate mortgage rate to 2.99 per cent. The results of surveys conducted by RateSpy.com and Cannex.com indicate that this is the lowest advertised rate in Canada.
Earlier this month, industry news site MortgageBrokerNews.ca reported that two top Canadian brokerages — Verico Butler and Advent Mortgage Services — were also offering five-year fixed-rate mortgages at the same low rate.
In general, mortgage brokers can get mortgage rates for their clients that are lower than what the Big Five banks and other large lenders usually offer. However, there have been instances where lower-rate mortgages have severe restrictions placed on such things as rate holds and prepayment privileges.
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