Since the start of 2016, the S&P 500 has been down by more than 6.5 per cent, relieving a lot of pressure on both the U.S. Federal Reserve and Canadian policymakers to raise fixed-rate mortgages. In addition, the Bank of Canada is projected to maintain its current lending rates, thus providing a level of assurance that variable-rate mortgages won’t increase anytime soon.
The relative tranquility allowed the Meridian Credit Union, which is one of the largest credit unions in Ontario, to announce its one-year fixed rate mortgage of 1.69 per cent on Tuesday (February 2). This represents the lowest fixed rate currently available in the market.
Meridian also set its five-year fixed mortgage at 2.59 per cent.
“Meridian is going against the trend set by banks and lenders,” chief member services officer Bill Whyte told The Huffington Post
, alluding to the rate increases by some lenders in the past few months.
“We are able to take advantage of the current bond and lending environment and pass those savings onto our members,” Whyte elaborated.
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With mortgage falling in lockstep with interest rates despite rising debt levels, the prevailing bond and lending scene remains favourable to low rates, according to analysts.