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2013 Year End Review of Mortgage Rates in Canada

2013 Year End Review of Mortgage Rates in Canada

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2013 Mortgage rates in Canada saw very few increases. The Bank of Canada Overnight rate remained at 1% throughout the year and is predicted to remain at 1% until the second quarter of 2015. The BOC Overnight rate is a key indicator in changes in variable rates. There was no change in the Prime rate for 2013 and stayed at 3% or the 5-year personal fixed term at 1.45. The lowest variable rate mortgages on a five-year term was 2.4% which compares with 3.34% for a five-year fixed closed mortgage. Most major banks offered 3.89% for a five-year fixed rate closed mortgage.

Fixed Mortgage Rate Increases

There were 2 increases in Fixed Mortgage Rates by the major banks.


On June 20th, the Royal Bank of Canada issued a News Release they increasing their residential mortgage rate offers effective June 24, 2013. The Fixed Rate Posted Rates for 3 year closed has been increased to 3.75 percent increasing the rate by .10%. The majority of the increases were for Special Fixed Rate Offers with the Four-Year, Five-Year and Seven-Year Closed increasing by .20%. That same day Scotiabank issued a News Release stating an increase in special discounted rates on residential mortgages for their 2 year, 4 year, 7 year and 10 year fixed term of .10%. Increases came a day after TD Canada Trust increased its “special” five-year closed rate a tenth of a percentage point to 3.39%.


August 20th, the Bank of Montreal took the lead in raising 2 Five Year Fixed Closed Mortgage rates by .20% with their 5 year Eco Smart ™ fixed closed to 3.79% and their 5 year low rate fixed closed to 3.79% effective August 21st. They were soon followed by RBC with increase by 0.20 per cent on 4 of their Special Rate Fixed Offers of Four-Year Closed at 3.59%, Five-Year Closed at 3.89%, Seven-Year Closed at 4.19% and Ten-Year Closed at 4.59%; and 3 of their Fixed Rate Posted Rates of the Three-Year Closed at 3.95%. Four-Year Closed at 4.74% and Five-Year Closed at 5.34%. RBC announced the rate increase on August 21st, effective August 22th followed by the other leading banks.

Conventional Mortgage in 2013

Conventional Mortgage 1-Year 2013

Low 2013-02-01 3.00

Average 2013-02-01 — 2013-12-01 3.09

High 2013-12-01 3.14

Conventional Mortgage 3-Year 2013

Low 2013-03-01 3.55

Average 2013-02-01 — 2013-12-01 3.77

High 2013-12-01 3.95

Conventional Mortgage 5-Year 2013

Low 2013-07-01 5.14

Average 2013-02-01 — 2013-12-01 5.24

High 2013-12-01 5.34

Conventional Mortgage – A property loan that does not exceed 80% of the purchase price and does not require loan insurance.

Check back next week and we will bring you the forecast of mortgage rates in Canada for 2014.