Lowest fixed and variable mortgage rates in Canada for December 7 2023

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Bond yield bonanza: Falling rates beckon homebuyers

Wednesday’s Bank of Canada statement almost sealed market expectations that rates have peaked. As a result, bond yields and fixed mortgage rates keep falling.

Sinking yields make fixed mortgages cheaper to fund. That’s why lenders have been sharpening their pencils in the last week — a development that could wake up homebuyers after Christmas

McLister:What to look for in a variable mortgage rate, now that rate cuts are coming

In the insured market, the five-year fixed rate is back below 5 per cent for the first time in months. Providers like Radius Financial and Butler Mortgage lead the charge at 4.99 per cent. If mortgages were a limbo dance, these guys would be hard to beat.

Then there’s the uninsured mortgage crowd, looking on with envy. Despite tumbling 18 basis points, the best nationally-advertised fixed is 5.86 per cent from RateHub. This insured-uninsured rate gap is due to rising default concerns and lower funding costs for insured mortgages.

But if you’re well-qualified, risk-tolerant and need financing for three or more years, don’t waste time with fixed rates. Play the odds, ride the wave and float your rate instead.

Rates were sourced from the MortgageLogic.news Canadian Mortgage Rate Survey on Dec. 7, 2023. We include only providers who advertise rates online and lend in at least nine provinces. Insured rates apply to those buying with less than a 20 per cent down payment or switching a pre-existing insured mortgage to a new lender. Uninsured rates apply to refinances and purchases over $1-million and may include applicable lender rate premiums. For providers whose rates vary by province, their highest rate is shown.

Robert McLister is an interest rate analyst, mortgage strategist and editor of MortgageLogic.news. You can follow him on Twitter at @RobMcLister.