Current Mortgage Rates Canada – February 2022 Mortgage Rate Update

Fixed mortgage rates are up! Vvariable mortgage rates are flat. In today’s video we discuss current mortgage rates for February 2022 in Canada, including the best fixed and variable mortgage rates, as well as the best discounted mortgage rates.

Things are getting interesting in the interest rate world and we’re going to tell you all about it in this month’s february mortgage rate update the definitive guide on how to manage your credit product penalty price it’s never been more important to get your mortgage right all right so welcome back lots of interesting things happening in the interest rate world

Obviously we expected on january 26th for interest rates to go up in both the us and canada obviously both the federal reserve in the u.s and the bank of canada in canada decided that they weren’t going to increase interest rates honoring their commitment to be transparent in what they were going to do however they did make it clear that interest rates would go

Up in march of 2022 and we’re going to talk about where interest rates have gone up to and where they’re at as of today keep in mind that this market is really fluid and interest rates are really fluid right now so by the time this this video gets published certain banks may have already increased their interest rates or lowered their interest rates so if you’re

Watching this video keep in mind that the rates in this video are a pretty good indication but not necessarily exactly the rates that are out there at the moment in which you watch it but before we get into it and we talk about all the rates do me that favor hit that subscribe button hit that notification bell and please hit that like button so more people like

You can see this video and don’t forget about a race to 25 000 subscribers where when we hit 25 000 subscribers we’re gonna give away five thousand dollars to one lucky winner to do with whatever they like maybe they pay down their mortgage maybe they use it for their down payment or maybe they just go and blow it on whatever they want to blow it on but in order

To win in order to get that money you have to be subscribed and you also have to watch for the exact way in which to win that money on future videos in order to actually win the money so go ahead click that subscribe button it’s free it’s easy it’s definitely worth it and ultimately i sincerely hope you yes you the person who’s watching this i hope that you end

Up winning because i really want to see you have that five thousand dollars but of course there can only be one of you and there’s a whole bunch of you that are watching so i’m rooting for all of you i’ll let you know when we get to 25 000 subscribers who are the winners so let’s discuss interest rates as of february 2022. i’m gonna start this whole thing with

A disclosure you know what i’ve noticed is that there’s a whole bunch of people out there who are watching these videos and they’re taking the information from it and they’re going to their bank or they’re going to their broker and that’s fine i just want to tell you right up front if you go directly to your bank and you get a five-year fixed rate hold and then

You subsequently get a five-year fixed rate i can’t help you i can’t help you when you have a massive penalty that you didn’t expect to have i can’t help you when something goes wrong in the process and if you go to another broker who’s maybe selling discount mortgages and doesn’t disclose all of the things that are in those mortgages that could cost you 5 10 15

000 down the road i can’t help you there either so here’s my ask of you if you’re watching this video and you’re either a first time home buyer or you’re a move-up buyer if you are purchasing a property to live in and you are in bc alberta saskatchewan or ontario please give mortgage 360 the opportunity to do the mortgage for you and make sure that it is done

Right because we’re seeing a lot of people coming to us just after getting their mortgage or getting all the way into the process and having nowhere to turn asking for advice and by the time we get to that point it’s already too late i can’t protect you from the banks i can’t protect you from discount mortgages unless you’re coming directly to us and i certainly

Can’t give you advice if you call me or email me and ask for advice without you being a client and without you being somebody who’s signed a written service agreement with us because it’s both unethical and illegal for us to provide advice to people who haven’t signed a written service agreement with us so that is my caveat to this whole thing if you are in this

Situation where you’ve got a bank you’ve got a broker we have a course called secrets to getting the lowest interest rate it’s 97 bucks it’ll save you at least a thousand to five thousand dollars depending on how big your mortgage is just in the information that’s in that course it’ll also save you from getting into landmines and surprises they’re going to come

Back to haunt you somewhere down the road just by having the knowledge of what to look out for you here in the intro of this video i talk about product penalty price in that order the worst thing you can do is look at rate as your primary determining factor of the mortgage you’re going to get you need to look at the product first make sure it’s the right one for

You then you can look at the penalty which is the thing that most people don’t factor into the cost of the mortgage but almost everybody at some point ends up eating and then look at the price and the interest rate once you’ve determined that the penalty and the product are the right products for you so all of that being said you can go to to get the

Secrets to getting the lowest interest rate course if you do decide to have us do your mortgage we will give you 10 times your money back in a credit so you can go ahead and use that to get basically a thousand dollars off your mortgage or your moving fees or so on and so forth and ultimately you know we put that out there because we want to make sure everybody has

The information they need to get the exact right mortgage to know how to negotiate with the bank know how to negotiate with the broker and also know how to make sure that you aren’t getting surprised by something thinking that you got a really good interest rate and ultimately you end up getting screwed because you didn’t know what you were getting to or you didn’t

Know what they removed from the product or put into the product in order to give you that super low ultra low interest rate so again if you want to take that course and otherwise i sincerely hope that you’ll allow us to join you on that journey and actually help you get the mortgage so moving into the interest rates here let’s talk about what’s going

On in the interest rate market we’ve added cute cool little triangles to this uh these slides first and foremost five year fixed full featured mortgages insured or greater than 35 down these are the mortgages that have the least risk for a lender they are pricing the five-year full-featured mortgage right now at about 2.79 this is up from about two or three days ago

Reason why is because there’s that continued expectation of the bank of canada and the federal reserve increasing interest rates and subsequently five-year fixed rates are going up that being said most of the increases that are expected by the bank of canada and the federal reserve have already been factored into five-year fixed rates so don’t expect these to go up

Substantially more but there’s going to be a lot of fluctuations up and down in these in the next couple of months as we start to see what’s happening with interest rate increases and how it’s affecting the economy now second we go into the five-year full-featured fix between 20 and 35 percent down these are the mortgages that carry a little bit more risk because

They aren’t at that 35 percent down number and they don’t have mortgage insurance on them so in the past it used to be if you put 20 down you got a really good deal now 20 because it doesn’t have insurance on it is the most risky mortgage for a bank so these are priced between 2.79 and 2.94 obviously the more you put down the lower that rate so if you’re putting

30 down you’re going to be in that 2.79 range if you’re putting just 20 down you’re going to be at 2.94 by the way my big caveat is if you’re gonna get a five-year fixed mortgage don’t get it through a big bank the reason you don’t want it through a big bank is because the penalty calculations are not in your favor it’s the one thing that you’re going to spend a

Lot more money on with a big bank most of the money lenders have penalty calculations that are going to be about one-fifth to one-third what a big bank penalty would be and this is really really really important because even though we expect interest rates to go up if they don’t go up substantially you could find yourself incurring an interest rate differential if

You need to pay out a mortgage and obviously penalties mean lack of flexibility it means not being able to go and get a lower interest rate if rates do go down it means not having the flexibility to negotiate for lower rates when you want to go and buy another property and so on and so forth so you have to be very very wary about penalty penalty is a thing that

Gives the bank the leverage down the road it’s why it’s probably the single most important part of getting a mortgage and understanding how that penalty is going to be calculated if you’re getting a variable from a big bank fine but avoid those five-year fix moving into variable rates of five-year full-featured insured greater than 35 percent down we’re looking at

About 1.35 this has not changed from last month nor has the 20 to 35 down payment rates which are 1.35 to 1.45 percent these are the mortgages that most of our clients are choosing given how much lower the interest rate is than a five-year fix knowing that they’ve got five six seven interest rate hikes before they get to where the five year fixed rates are right

Now so this is a really good option for most people and moving into discount interest rates now again these are the ones you’re going to find if you google lowest interest rates canada you’re going to find websites that have super low interest rates keep in mind that it is like anything else in life you absolutely 100 percent get what you pay for if you’re paying

The lowest price you’re not getting the best mortgage if you’re paying the lowest price you’re not getting the best features it’s like walking into a car dealership and seeing the baseline ford explorer priced at thirty five thousand dollars and the fully fully equipped platinum level ford explorer being priced at seventy thousand dollars and going well they must

Be the same thing so i’m just gonna buy the cheap one and obviously you give up a whole bunch of really nice features and things that ultimately are going to save you money like resale value down the road by choosing the lower cost one so you got to understand that discount mortgages come with things stripped out of them they come with things that aren’t always in

Your best interest things like bona fide sale clauses which basically means you can’t leave the lender unless you sell the property which means you can’t refinance go to a different lender you can’t switch to a different lender for a lower interest rate you’re pretty much stuck and the big challenge here is if you’ve got a variable rate mortgage with a bona fide

Sale clause you could end up in a situation where you are basically saying hey i want to lock in my rate and they’re saying well it’s going to cost you because you’ve got this bonafide sale clause you can’t leave and we now get to dictate the terms by the way big banks can do that with their penalties uh they can basically say if you want to leave if you want to do

Something it’s going to cost you because they have substantially high penalties so the five-year fixed discounted rate is priced right now at 2.54 that is again up from last month 2.54 to 2.69 between 20 and 35 down payment again the lower rate is for the larger down payments getting up around that 30 down payment range and then getting into five year discounted

Variable rates this is where you can save a lot of money but keep in mind the lock-in process could be trouble for you if you can’t leave the lender somewhere down the road you may have to pay a higher interest rate so if you have any sort of idea that you might lock into a five-year fix you probably don’t want one of these discounted rates but if you’re hey write

Or die variable rate and you’re going to hold on to it for the next five years this might be a good option for you five year discounted variable is at 1.05 percent for insured or greater than 35 down payment and then 1.05 to 1.15 for a five-year discounted variable at 20 to 35 down payments so again really great options um you know i’m a little bit hesitant from

The perspective of saying go out get that discounted mortgage because again you lose your flexibility you lose your options if you need to refinance especially if you’re putting more than 20 down it can become problematic and there’s a whole bunch of reasons for that if you choose to come to mortgage 360 for your mortgage we can explain them all or if you want to

Go and take that secret to getting the lowest interest rate course we explain them all in there so that is your february mortgage rate update i know i blasted through that real quick this time i hope you found this information useful if you did do me that favor hit that subscribe button hit that notification bell please hit that like button so more people like

You can see this video don’t forget about that race to 25 000 subscribers and we’ll see you on the very next one cheers

Transcribed from video
Current Mortgage Rates Canada – February 2022 Mortgage Rate Update By Nolan Matthias