More Canadians look to refinance mortgages after unprecedented rate cuts
Following the Bank of Canada’s three rate cuts in March, a mortgage rate comparison site said that it has experienced an increase in the number of Canadians using its mortgage quoter to refinance their homes.
The BoC made three rate cuts in March in an effort to combat the economic shock the nation is facing as a result of the COVID-19 pandemic. The most recent rate cut has brought the key interest rate down to 0.25% – the lowest level since 2010, prompting many Canadians to refinance their mortgages.
Read more: Nearly a quarter of Canadians do not compare mortgage rates before purchase
Comparison portal LowestRates.ca examined its data to compare the number of mortgage quotes in February and March of this year, as well as the number of quotes generated in March 2020 compared to March 2019. The numbers showed a 101% increase in quotes in March 2020 compared to February 2020, as well as a 159% increase compared to the same month in 2019.
Find out what affects mortgage rates in Canada in this article.
“The latest rate cut has led to some of the best refinancing deals we've seen in years,” said Justin Thouin, co-founder and chief executive officer of LowestRates.ca. “There's some uncertainty about whether these deals will continue to last, but in the meantime, we're seeing a flood of Canadians trying to take advantage of them. Being able to refinance to a lower rate can save you thousands of dollars a year.”
