(Unsplash)

Drop in fixed mortgage rates a ‘welcome cooling period’: real estate agent

Major banks dropped their rates this week

A slight downturn in mortgage rates shouldn’t send prospective buyers into a tailspin, according to a Lower Mainland Royal LePage advisor.

At least two of the country’s main banks, the Royal Bank of Canada and the Bank of Montreal, lowered their five-year fixed mortgage rates this week.

Adil Dinani said the fixed rate depends on bond yields, and “when the bond yield goes down, rates go down.”

The Bank of Montreal dropped its rate by 0.15, down to 3.74 per cent.

“It’s so marginal that it doesn’t really have a material impact on how much money they’re going to lend or how many people buy homes,” said Dinani.

But it does is a “psychological effect,” he said, as some homeowners look to swap from variable rates to fixed ones.

The reason behind the potential swaps is that variable rates are affected by the Bank of Canada prime rate, which has gone up 1.25 per cent in the past year and a half.

Fixed rates are unaffected by that and are instead tied to the bond market.

In general, Dinani said, the lowered fixed rates is another sign of a market cooldown after a hot decade in real estate.

“The market needs some good news, particularly in Vancouver,” he said. “We’ve had tremendous run-ups in our market since 2009 that a cooling period now is very welcome.”

Just Posted

Parksville artist aims to produce zero waste with creations, business

Margie Preninger even dabbled with dryer lint year ago

RDN dealing with high interest in backyard cannabis production

New policy proposed to address challenges with Health Canada licences

Vancouver measles outbreak prompts vaccine vigilance on Island

No cases here yet, but Island health authorities push measles vaccinations - and not just for kids

Oceanside RCMP members take the plunge for Special Olympics

Some members of the Oceanside RCMP detachments took the plunge freezing waters… Continue reading

Jeep bursts into flames on highway near Nanoose Bay

Emergency crews responded to blaze at approximately 9:15 a.m. on Tuesday

VIDEO: Massive elk herd runs across Washington State highway

Elk have been making an appearance in the Pacific Northwest

BREAKING: Woman, off-duty cop stabbed outside B.C. elementary school

The officer was interceding in an alleged assault when he and the woman were stabbed

$10-a-day child care not in 2019 budget, but advocate not irked

Sharon Gregson with the Coalition of Child Care Advocates of B.C. says NDP on track to deliver promise

Winter storm freezes U.S., halts air travel

Storm dumps snow or heavy rain, snarls travel in much of U.S.

Gwyneth Paltrow: Skier sued me to exploit my fame, wealth

The incident happened in Deer Valley Resort in Park City, Utah

B.C. Seniors Advocate questions labour shortage in care homes

Are there really no workers, or are care aide wages too low?

B.C. business groups worry about looming economic decline in wake of NDP budget

The party’s second government budget focused on plenty of spending, business advocates say

Missing Surrey snowshoer caught in avalanche found dead on Vancouver mountain

North Shore Rescue resumed its search today after efforts were temporarily halted Tuesday due to snowstorm

Man injured in police shooting near Nelson has died: B.C. police watchdog

The death follows an incident in Bonnington on Feb. 13

Most Read