Currently, mortgage rates for a 60-month term at National Bank include a variable rate tied to the Prime Rate at 5.95%, and a capped-rate option with a present rate of 6.20%. These rates are subject to change and are typically linked to market conditions and the lender's prime rate.
Current Mortgage Rates Overview
Understanding the different types of mortgage rates available is crucial when considering financing a home. Rates can vary based on the term length, whether they are fixed or variable, and specific product features like a cap. The following table provides a snapshot of current rates for a 60-month term:
| Mortgage Type | Linked Rate / Cap Information | Current Rate (60-month term) |
|---|---|---|
| Variable-rate mortgage | Tied to Prime Rate | 5.95% |
| Capped-rate mortgage | Tied to Prime Rate, Capped at 6.95% | 6.20% |
Please note: These rates are reflective of information available from National Bank.
Understanding Different Mortgage Rate Types
Mortgage rates are influenced by various factors, including the lender's prime rate and specific product features.
- Prime Rate: This is the interest rate that commercial banks charge their most creditworthy customers. It serves as a benchmark for many variable-rate loans. For the variable-rate mortgage mentioned, the rate is directly the Prime Rate.
- Variable-Rate Mortgage:
- A variable-rate mortgage has an interest rate that can fluctuate over the life of the loan.
- It typically moves in tandem with the lender's Prime Rate. When the Prime Rate goes up, your mortgage payments may increase; when it goes down, your payments may decrease.
- The variable rate currently stands at 5.95%, which is the Prime Rate itself.
- Capped-Rate Mortgage:
- A capped-rate mortgage offers the flexibility of a variable rate but with the added security of an upper limit, or "cap," on how high the interest rate can go.
- This provides protection against significant rate increases, ensuring your payments won't exceed a certain threshold.
- While the current rate for this specific capped-rate mortgage is 6.20%, its interest rate is capped at 6.95%. This means even if the Prime Rate were to rise significantly, your rate would not surpass 6.95% within the 60-month term. This can be particularly beneficial for borrowers seeking a balance between potential savings from a variable rate and protection from extreme market fluctuations.
Where to Find More Information
For the most up-to-date and comprehensive information on mortgage rates, it's always best to consult directly with lenders. You can find more details on current mortgage offerings by visiting the official website of financial institutions, such as National Bank's current rates page.
