(Unsplash)

Drop in fixed mortgage rates a ‘welcome cooling period’: real estate agent

Major banks dropped their rates this week

A slight downturn in mortgage rates shouldn’t send prospective buyers into a tailspin, according to a Lower Mainland Royal LePage advisor.

At least two of the country’s main banks, the Royal Bank of Canada and the Bank of Montreal, lowered their five-year fixed mortgage rates this week.

Adil Dinani said the fixed rate depends on bond yields, and “when the bond yield goes down, rates go down.”

The Bank of Montreal dropped its rate by 0.15, down to 3.74 per cent.

“It’s so marginal that it doesn’t really have a material impact on how much money they’re going to lend or how many people buy homes,” said Dinani.

But it does is a “psychological effect,” he said, as some homeowners look to swap from variable rates to fixed ones.

The reason behind the potential swaps is that variable rates are affected by the Bank of Canada prime rate, which has gone up 1.25 per cent in the past year and a half.

Fixed rates are unaffected by that and are instead tied to the bond market.

In general, Dinani said, the lowered fixed rates is another sign of a market cooldown after a hot decade in real estate.

“The market needs some good news, particularly in Vancouver,” he said. “We’ve had tremendous run-ups in our market since 2009 that a cooling period now is very welcome.”

Just Posted

Ladysmith author explores community as The Moon Watched It All

Shelley A. Leedahl releasing her latest work, an illustrated tale for all ages

What do you want to see done with Ladysmith’s old train station?

Island Corridor Foundation meets with community to discuss the future of the Railway Station

Easter Fun Day

Kids fill their baskets with treats Saturday at Fuller Lake Park

Mad scramble for Easter treats

Crofton Easter Egg Hunt brings out hordes of kids and massive bunny chases

Mandatory spaying and neutering looms for outdoor Chemainus cats

North Cowichan considers bylaw to control stray and feral cat issues

What’s age got to do with it? B.C. couple with 45-year gap talks happy marriage

An Armstrong couple that has 45-year age gap began turning heads after being featured on show Extreme Love.

Climate action can’t be a partisan issue, say Greens

Green Party of Canada celebrated Earth Day early in Nanaimo

Fisheries and oceans minister spends Earth Day in Nanaimo-Ladysmith

Jonathan Wilkinson in riding to support candidate Michelle Corfield

WATCH: South Vancouver Island shooting an ‘isolated and targeted’ incident, say police

One person in custody, another fled following shooting and crash on West Shore

Woe, Canada: Bruins down Maple Leafs 5-1 in Game 7

No Canadian teams left in Stanley Cup playoffs

Defence accuses officer of ‘incompetence’ in trial for B.C. man accused in daughters’ murder

Double murder trial for the Victoria father accused of killing his two young daughters continues

Should B.C. parents receive money if they make sure their kids are vaccinated?

New survey looks at public opinion around government’s role in forcing immunizations

B.C. men challenge constitutionality of Canada’s secret no-fly list

Parvkar Singh Dulai says he received a “denial of boarding” notification under the no-fly program last May 17

Murder on B.C. property didn’t need to be disclosed before sale, court rules

Buyer had tried to break contract after learning a man with ties to crime had been murdered there

Most Read