Calgary Mortgage Rates for November

November 27, 2008  
Filed under Mortgage Rates

In November we’ve seen mortgage interest rates continue to climb slowly. This is mostly due to the fact that mortgage lenders are being pressured to be more liquid, and the higher costs of financing mortgages in today’s credit and economic environment.

Variable rates, adjustable rates, and rates on Home Equity Lines of Credit (HELOCs) are also rising, despite the fact that the Bank of Canada has decreased its overnight rate. Mortgage lenders have followed suit in decreasing their prime lending rates, however their pricing in respect to prime is increasing. Many variable/adjustable rate mortgages are now prime plus 1.0%, as opposed to prime minus a discount. HELOCs are also being offered at prime plus a premium (except for National Bank, whose HELOC product is still at prime).

There is speculation that mortgage rates will continue to rise as the economy continues to remain unstable. Some mortgage lenders are offering stellar deals on one year term rates, which indicates that they may expect rates to rise within the next year (thus why they are offering discounts on one year terms).

Everything being said, no one can predict the future, so let’s stick with what we know today.

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