It appears that the mortgage war is back on; BMO just slashed its 5-year fixed mortgage rate to 2.79% from 2.99%. The other banks are sure to follow suit. This despite the fact that Canada’s hottest markets are considered to be overvalued by up to 30%.
See this Globe and Mail article for more info.
What does this mean for new home buyers in more balanced markets like Yellowknife? Opportunity. And for those existing homeowners who opted for variable over fixed rate mortgages, the picture just keeps getting rosier.