Mortgage Interest Rate Update October 3rd

October 3, 2012

Do you know why you are looking for the lowest mortgage interest rate? Because interest rate is the price of the money you borrow. And all things being equal you want the best price for any product or service you buy.
Right now if you are shopping for a mortgage to buy a home, refinancing debt or renewing your existing mortgage you are going to have the opportunity to lock-in to some of the lowest rates historically available.
How do we know this? Because it’s the government of Canada bond yield that allows us to determine where fixed rate mortgages are headed. Consider the following graph of the Government of Canada 5 Year Bond Yield over the past 12 months.
The graph shows 3 low points. The first is January 2012. The Second June 2012. The 3rd and final is the end of September and the trend has continued into October. Those 3 low points are precisely when historically low 2.99% fixed 5 year rates became available for mortgage financing. The same trend has developed for other terms as well including 3 year terms and 10 year terms.

Here are my picks for this week from longest term to shortest.
If you want long term stability in your mortgage consider a 10 year fixed at 3.89%
For your medium term I have the ever popular 5 year fixed priced at 2.99%.
Finally for your short term needs consider this well priced 3 year fixed at 2.69%.
All 3 of these fixed rate options are priced at their historical lows. If you are looking for another term visit my interest rate page for a complete offering of rates.
If you are considering buying this fall and need mortgage financing I want to you to do yourself a favor and contact me. Give me the opportunity to earn your business and find you the best rate and mortgage. Working with a broker like me is free of charge and unlike anyone you work with at the bank, I am a professional dedicated to advising my clients how to pay off their mortgage in the least amount of time with the least amount of interest. Read what my client’s have to say about me.


Christopher Molder

Mortgage Broker

Christopher is a mortgage broker based in Toronto, Canada. And a son of a broker too. He’s a second generation mortgage broker. Following in his father’s steps he joined the family mortgage business straight out of university.