So, I got word from my mortgage guy, Bruno, at TD Canada Trust that I will be getting a 3.75% 5-year fixed rate. Right now, the current posted 5-year fixed rate is 5.25% so I'm basically getting 1.5% off the posted rate. I'm happy with that. I could probably get a slightly lower rate if I went to a smaller lender but I've been quite happy with the service that I've gotten from Bruno since I've signed my purchase agreement last year.
To recap, here are the rates I was guaranteed since I signed last year in July:
July 2008: 5.9%
Aug 2008: 5.6%
Dec 2008: 5.5%
Jan 2009: 4.54%
April 7th 2009: 4.44%
April 26th 2009: 4.0%
May 2009 (final): 3.75%
I decided to do a 5-year fixed rate for stability and piece of mind. I could have gone with a variable rate mortgage (currently at 2.85% which is bank prime + 0.6%) since the prime lending rate is at an all-time low. But my gut is telling me that mortgage rates have bottomed out and that it will only go up in the future. When that will be, I don't know but I'm content with riding my 3.75% over the next five years.
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