Mortgage Rates Keep Setting New Record Lows

While mortgage rates have been tumbling steadily over the last couple of months, many are now in record-setting territory, with certain 1- to 5-year fixed rates now available for under 2.00% from discount brokers.

Concerns over a second wave of COVID-19 have caused Canada’s 5-year bond yield to fall to its own record-low, which in turn is pulling down fixed mortgage rates.

HSBC Canada led the trend earlier this month when it announced a 5-year fixed default-insured mortgage for 1.99%, the lowest rate ever for a 5-year fixed at the time. There are now multiple brokers offering 5-year fixed rates starting at 1.98%, and even lower in some cases, although those rates entail restrictive conditions.

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