The major Banks have just reduced their mortgage rates…They still need to do better then this to compete with my mortgage firm!

The Bank of Montreal reduced its posted five-year fixed mortgage rate by 0.10 per cent to 3.89 per cent. BMO is also offering a “special” low-rate five-year fixed mortgage at 3.49 per cent.

TD Canada Trust also cut its benchmark mortgage rates by a tenth of a point on Tuesday October 12. TD’s standard five-year fixed rate stands at 5.29 per cent and with certain promotional offers can go as low as 3.89 per cent. 

Banks typically fund their fixed-rate mortgage lending from instruments tied to bond yields. The ongoing rally in the fixed-income market has meant they can to continue to offer lower rates, even though the Bank of Canada has raised its prime rate twice since June.

On top of this another article does not look so good for Ontario…or does it:

Ontario housing starts posted the biggest decline in all Canadian provinces as residential construction eased for single detached homes and condominium development. 

Approximately 54,500 starts (seasonally adjusted and annualized figures) broke ground last month, down 10.9 per cent from August, according to the Canada Mortgage and Housing Corporation. 

“Canadian housing demand has cooled significantly this year, and supply has begun to follow,” said economist Robert Kavcic for BMO Capital Markets to the Toronto Star. “Starts should continue to soften in the next few quarters, pulled down by the cooling we’ve seen on the demand side of the housing market.” 

So far this year, Ontario new home construction is ahead by 29 per cent over 2009, though much of it is from the market’s strength earlier this year. Starts, which are counted when the concrete foundations are poured, are a key indicator of future economic activity, as new development generates job growth.

Either way here is the mortgage rates for you through my mortgage firm at Networth Mortgage Centre:

1 Year fixed 2.44%..2 year fixed 3.15%…3 year fixed 2.79%…4 year fixed 3.49%…5 year normal fixed 3.39%…5 year fixed 30 day closing 3.29%…5 year fixed 30 day purchase special 3.17% ( When you buy through one of our approved realtors)…VRM Prime -.90 aqnd HELOC Prime +.50.

Like always any questions feel free to contact.

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