July Mortgage Interest Rate Update – RELIEF COMING???

In this month’s July Mortgage Interest Rate Update we start to see some relief from rising fixed interest rates, and banks get a little bit more competitive on their five year variable rates.

All right welcome back to another mortgage interest rate update this time for july there has been lots of action in the last month as there has been for the last three or four months in the interest rate world we’ve seen five year fixed rates go up quite substantially again this month however we are seeing a little bit of a reprieve from rising interest rates and

Rising bond yields as global markets essentially get beat up by recession fears so that is a good thing that means these five-year fixed rates hopefully we’ll start to come back down and we’re going to see a little bit of an opportunity to lock in at some lower five-year rates but before we get into all the details 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 if you want to know all the secrets to getting the lowest interest rates in the canadian market you can get our secrets to getting the lowest interest rate course at ratesecrets.ca this is going to be one of the last times that you’ll be able to buy

That course if you want that information this might be your last chance it’s designed to get you at least 10 to 50 times your money back again ratesecrets.ca if you want to save big time on your mortgage okay so let’s get into it let’s discuss interest rates for july of 2022. let’s start first and foremost with prime rate it remains unchanged from last month but

It is widely expected that this interest rate will go up to at least 4.45 on july 13th so expect the variable rates will go up accordingly they could go up even more than that depending on what the outlook for the economy looks like but rest assured this rate is increasing this month and we’ll give you an update when that happens now we talked a little bit at

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The beginning in the intro about the fact that five-year bond yields are starting to come back down at the beginning of the month we saw five-year bond yields go as high as 3.6 that is the very peak that you see on this graph we are now seeing them come back below three percent which is about where they were at the beginning of june which means we’ll hopefully

See interest rates going back into that four and a half or maybe even that four percent range on a five-year fixed but these bond yields which the five-year fixed mortgage rates are based off of are going down because of recession fears so up until this point most of the interest rate increases from the bank of canada were priced into the bond market yields now

What we’re seeing is the bond market pricing in not as many interest rate increases as a result of again those recessionary fears as a result of less growth in the economy less gdp growth and a little bit of a worry about jobs going forward so let’s get into what you’ve come for this is the five year full featured rate it is now over five percent 5.04 this is

Of course for insured mortgages or greater than 35 percent down mortgages these are the mortgages that have the least risk for the banks which is why they are the cheapest if you’re putting between 20 and 35 down those are the most risky mortgages for the bank because that is the least amount of down payment that you can put down without those mortgages being

Insured so you’re going to pay a little bit more for those and for those mortgages you’re going to pay between 5.04 and two 5.29 percent and again as you get to the bigger down payment the mortgages get cheaper so basically if you’re putting twenty percent down expect on a five year fixed mortgage right now you’ll be paying about five point two nine percent

As for variable interest rates we’ve actually seen these come down a little bit as banks are getting more competitive in this summer market so if you want a five-year full-featured variable rate mortgage with insurance or greater than 35 down you can get that for 2.75 right now by the way what’s a full featured mortgage well this is the type of mortgage that

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Has lower penalties the ability to pay back the mortgage faster and less fees associated with breaking the mortgage and by the way these are very often not at big banks they’re with what we call a plus lenders that have better products in the banks because they specialize in mortgages be careful when you talk to your bank about lenders like first national mcap

Cmls the banks will call them b lenders they are not b lenders they actually have superior products in a lot of ways to what the banks will sell you and by the way i’ll link to a video up here that explains all the differences between the best lenders in canada when it comes to getting a mortgage now if you’re looking to put between 20 and 35 down payment again

You can get into a five-year variable rate at 2.75 percent if you’re putting closer to 35 down and it’ll cost you about 3.1 if you’re putting 20 down now moving into the discounted rates these are the rates that have certain features stripped away or have excessive penalties to get out of so there’s some things that come along with these mortgages that end up

Potentially costing you more over the long run in the beginning you end up getting a lower interest rate we call that basically front loading and if you end up having to get out of your mortgage at some time in the first five years chances are these are going to cost you significantly more to get out of because just like anything else in life you get what you

Pay for and when you get a really really really ultra low rate on your mortgage there’s a really good chance that you’re getting less value for your money so stay clear of these but we’re gonna tell you what they are anyways if you’re looking at a five year fixed fully discounted rate you’re looking at four point eight four percent right now for insured or greater

Than thirty five percent down payment if you are in between that twenty to thirty five percent down payment you’re looking at four point eight four to five point zero nine percent and if you’re looking at five year discounted variables you can get those for two point five five percent which is a really great rate the problem with these rates is that if you decide

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To lock in at some point you have no negotiating power you can’t leave and go to a different lender and therefore you pretty much have to lock in at whatever the lender tells you which could be a great rate or it may be an awful rate and you may be forced to stick it out in your variable as a result so for a five year discounted variable you can get it at point

Five five percent right now insurance or greater than thirty five percent down and for a five year discounted variable with twenty to thirty five percent down you’re looking at two point five five percent to two point nine percent of course with that higher rate coming with that smaller down payment and those are your interest rates for july of 2022. so they have

Gone up substantially on the five-year fix although it looks like we’re going to get a little bit of relief from the upward pressure at least for the time being and those variable rates are getting a little bit more competitive again for most people they are still choosing variable rates because of the significant difference between variable and fixed rates

Right now and by the way it is widely expected by economist that there will be a point where variable rates will start to come back down as the bank of canada starts to get inflation in line with two percent or as they tank the economy into a recession so if you found this video useful do that favor hit that subscribe button hit that notification bell share it

With your friends hit that like button so more people like you can see it and we’ll see you on the very next one cheers you

Transcribed from video
July Mortgage Interest Rate Update – RELIEF COMING??? By Nolan Matthias