June 3 2009 by Ellen Roseman
Some banks are raising their fixed five-year mortgage rates, the Star reports today, citing higher long-term bond yields as the reason.
This may be a good time to lock in a historically low rate, assuming you can get out of an existing mortgage without a big penalty.
“The good news is that weâ€™re still just 0.2 per cent above the lowest fixed rates in history,” said the Canadian Mortgage Trends blog, which called the turning point a couple of weeks ago and confirmed it this week.
“Moreover, if you want to lock in near the bottom, there are still some lenders who havenâ€™t raised yet.”
Last weekend, I also got a warning from the Canadian Mortgage Rate Search Engine.
“Big fan of your mortgage articles. We just noticed that rates are slowly starting to climb up and we believe that it is important for your readers to know. We contacted major banks and confirmed the possibility of rate hike next week.”
I’m still getting complaints about unexpectedly large penalties, but I’m also hearing from people who refinanced without pain and saved money. It’s worth exploring if your mortgage will be coming due in the next year to 18 months and you fear that rates will be back above 5 per cent for five years.
Since I can’t handle all the complaints I get, I was interested to hear from someone who’s doing it as a fee-for-service business. Jane Steele Moore of Complaints Are Us in Toronto charges $50 for the first hour and $25 an hour after that.
The story of how she helped someone resolve a problem with overdraft protection at a big bank is posted below.