5-year mortgages built for topsy-turvy economic times

Article content

Don’t look now but core inflation is rising again – not only in Canada, but in the US as well. Some of it is to be expected due to statistical calculations called base effects, but most of it may be inflationary, or at least significantly lower its value.

Article content

Where we go from here depends in part on how Donald Trump’s tariff threat pans out. A 25 percent tariff on Canada would shoot Americans in the foot given how tied their economy is to ours, but it could send Canada into recession. Despite Trump’s results, Canadian consumer spending and employment are not as bad as economists expected mid-year.

Article content

This potential economic rollercoaster calls for a secure way to borrow money. That’s what a five-year hybrid mortgage – part fixed and part variable – is designed for. Most lenders don’t have competitive hybrid mortgages, but you’ll find a few gems with advertised hybrid rates starting at around $4.75.

For crème de la crème hybrid rates, look to big banks like Bank of Nova Scotia. The best way to find one is to negotiate a five-year fixed and variable minimum rate separately. In order to do that, you need to contact a real estate agent with a high bank “status” or simply get aggressive.

Elsewhere in this week’s ranking rodeo, we saw five moves among the best offers advertised around the country:

• One year fixed (non-guaranteed): -5 basis points
• Four years fixed (non-guaranteed): +5 basis points
• Variable (unconfirmed): +5 base points
• Five-year hybrid (not guaranteed): +14 basis points
• Five years fixed (insured): +5 base ooints

Robert McLister is a mortgage strategist, interest rate analyst and editor for MortgageLogic.news. You can follow him on X at @RobMcLister.

Housing prices

The rates shown below are updated at the end of each day and are taken from the Canadian Mortgage Rate Survey produced by MortgageLogic.news. Postmedia and the Imaginative. Online Inc., the parent of MortgageLogic.news, is compensated by certain mortgage providers when you click on their links in the charts.

Can’t view the charts on this page? Try clicking here.

Share this article on your social network