Presently Variable mortgage rates are the lowest sticker price. We are fully expecting inflation to drive Variable rates in the coming years however not until in to 2022. The economy has been rebounding however government officials and economists are moving forward with cautiously optimistic statements about where we are headed with COVID variants at the forefront of everyone’s minds.
Fixed rates recently have been on a harsh down turn and bond yields have dipped nearly 0.25% over the past two weeks. In the mortgage world we are yet to see that dramatic drop materialize in to lower Fixed rate mortgages but are expecting announcements of rates lowering in the next week or two heading in to fall market.
Current rates as of August 5th, 2021:- 5 year Variable rate mortgages can be found ranging between 1.25% - 1.75%
- 5 year Fixed rate mortgage can be found ranging between 1.79% - 2.49%
These all pending mortgage size, credit score, amortization schedule and purchase price of home.
Rates are subject to change without notice and only upon formally approved credit*
Want to know what your annual household income can buy?
The following assumes 20% down payment, standard debt to income ratios following CMHC guidelines, 30 year amortization, no debts outside of mortgage application and Bank of Canada 5.25% qualifying rate:
| Affordability | Income | | $500,000 | $68,000 | | | $102,000 | $750,000 | | $1,000,000 | $138,000 | | $1,250,000 | $168,000 | | $1,500,000 | $202,000 | | $1,750,000 | $238,000 | | $2,000,000 | $272,000 |
Article written by: David Ford, Sparo Mortgage
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