A high-volume brokerage has in one day seen more interest in the 10-year mortgage than for an entire year, most of it coming from clients old enough to remember the double-digit nightmare of the early 1980s.
“It’s coming up in every consultation we have with a client,” James Laird, a partner at True North Mortgage, told MortgageBrokerNews.ca. “We’ve seen just remarkable interest in the 10-year, but also lender commitments. It’s coming from the press that the 3.99 rate has received this week.”
Other brokers are offering similar reports following the move by some lenders to bring their 7- and 10-year mortgages into what mortgage professionals term “viable territory.” It means that True North, for example, is now able to offer clients a rate just under that publicized 3.99 and less than 100-basis-points higher than the best 5-year fixed.
That gap has still been large enough to limit interest among first-time buyers, said Laird, with older buyers – those in the market before the 2007 recession -- more impressed by the new lower rates on long-term mortgages.
“If you a mortgage in the 1980s, you can’t believe what’s happening to mortgage rates right now,” he said, from True North’s Montreal location. “They understand what it means to be able to lock in a rate that less than 4 per cent for more than 5 years.”
Mortgage rates climbed down from 21-per cent highs in 1982, but only after record-high inflation was brought to heel.