2020 was certainly a year with many ups and downs and 2021 isn’t shaping up to be much different – except when it comes to Canmore & Banff mortgage rates. Worldwide, people and businesses have had to adjust to massive changes in the way we go about our daily lives. While the onset of the pandemic initially scared buyers and sellers from the market in the spring of 2020, there was a massive rebound across Canada. Home sales in Canmore & Banff have continued to stay strong through the fall, and a big part of that push has been historically low interest rates.
So just how low are mortgage rates right now?
In 2020, HSBC came out with a variable rate mortgage at a stunning 0.99%. Industry professionals believe is the first rate offered below 1% in Canadian history. Wow! While the number is eye-popping, as this is for a five-year closed term variable mortgage, the rate will vary up and down alongside the prime lending rate of the bank.
Of course, a 0.99% rate isn’t for every one. HSBC only put this rate out for high-ratio, insured mortgages only. A high-ratio mortgage is usually something most first-time homebuyers in the current market are familiar with, as it is less than the 20% down minimum of a “conventional” mortgage. When borrowers don’t meet this threshold, they require mortgage insurance – usually through the Canadian Mortgage and Housing Corporation (or CMHC).
Back when the pandemic first hit and society began to change in March and April 2020, the Bank of Canada moved to reduce key interest rates for the foreseeable future. This was seen as a way to bolster the housing market and Canadian economy during unprecedented times.
The Bank of Canada dropped their rate to an effective 0.25% in Q1 2020, from 1.75% in Q4 2019. In an effort to provide stability, the Bank of Canada telegraphed to the market that it planned to keep rates this low potentially until 2023. Most major Canadian lenders agree, and are forecasting low rates until at least Q3 2022
While I’m not a mortgage professional, I do work closely with my clients’ lenders every day. At this current time, its not uncommon to see Banff & Canmore mortgage rates well under 2%.
For many first time homebuyers, now is the time to finally jump into the market! Attractive rates combined with a desire for more space due to “work from home” have made the prospect of home ownership more appealing than ever.
For current homeowners, the draw of a mortgage rate lower than what they’ve been paying for years is leading to a string of refinancing moves. Many Canmore & Banff homeowners are looking now to unlock the equity of their homes. Or cash in on the booming market of the moment!
If you’re considering a property in Canmore or Banff and are unsure where to start, reach out to me. I’m always happy to guide clients through the buying or selling process. I pride myself on keeping a keen focus on helping you get the most out of the transaction. With my network of mortgage specialists, lawyers, property inspectors and more, let me be the guiding force behind your next successful real estate decision. Feel free to text, call or email me any time. No question is too small and I’m always available to help. Cheers!
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