Are the lowest mortgage rates going lower?

Mortgage Wars!

With a slowing market how does one attract new clients?  A CalgaryMortgage Broker will by improving customer service to be better than the competition of course.  As for the banks, one would hope they improve the features and benefits of the mortgage products and make sure the rate is competitive.
Sadly in this hyper competitive market place caused by the slowing of the housing market, the providers are attempting to undercut each other by offering just the lowest rate possible.

What is the problem with just offering the lowest mortgage rates you may ask?  

The whole Canadian system is designed around smart lending, and you naturally see in spring a more competitive market.  However much speculation is that the cooling of the market the government of Canada is trying to create is causing less buyers, which in turn creates more of a feeding frenzy for those who are in the market, as they are all hungry to keep their numbers where there were last year. 

Additionally if rates are so low that is causes the clients who should not be in the market place to enter the market.  The negative repercussions of that down the road when rates go up may place undue financial burden for many first time home buyers, or home owners who are at the top of their allowable ratios.   What happens if they opt of a shorter term, and the rates decide to go up, they could be in trouble.   With the 10 year being so incredibly low, I would often recommend this term to those who may not like the thought of the rate going up and their payments going up to a point that it is no longer comfortable.  For a calculator that may help you click a mortgage calculator

Today most of the big banks have followed BMO after they dropped their 5 year rate to 2.99 and reducing their rates even further, and we are getting further into a scenario the banks are trying their best to undercut the next lender.  It was cautioned today that if the sole focus of the banks is to drive down the cost of borrowing to entice more clients to enter the market then the history of the US may be repeated here in Canada.

Lower mortgage rates are available on the market, and there are hundreds of products so if you would like some reassurance that you are getting the best deal, fill out the form below. 

Or call a Calgary Mortgage Broker