The Bank of Canada has announced an increase to the overnight rate, which has resulted in a MCAP prime rate increase as of July 13, 2023 to 7.20%.
If you have a variable rate mortgage, your rate will change based on the MCAP prime rate. While many homeowners will remain comfortable with their variable rate mortgage, others may wish to lock-in to a fixed rate term to avoid further potential rate fluctuations.
It’s easy to lock-in to a fixed rate mortgageIf you currently have a variable rate mortgage and you lock-in to a fixed rate term of equal or greater length, there is no cost to you. You also retain the same privilege payment options in a fixed rate term as with your variable rate term.
How it worksWhen you lock-in to a fixed rate mortgage, you start a new term with a new interest rate. This means that your current term – and variable interest rate – will come to an end on the date you lock-in. The fixed interest rate for your new term will depend on the fixed rates available for the term length you choose.
Some terms and conditions may change when you convert your variable rate mortgage to a fixed rate. Before signing an offer to lock-in your mortgage, it’s a good idea to review the terms and conditions of the new term, including the prepayment penalty information, to make sure you’re fully informed.
To request an offer for the best available 5-year fixed rate, log into MyMCAP and select “Lock-in to a Fixed Rate”