A for sale sign is shown outside a home in Sarnia. Photo by File photo/The Observer

Most borrowing costs drifted lower this week after rate-friendly headlines and the Bank of Canada ’s cut on Sept. 17.

As usual, however, it’s a tale of two mortgage types. Default insured variable rates dipped a full 25 basis points, while uninsured variables fell only 10 basis points. Lenders are being stingy about discounts for the latter.

On fixed terms, leading rates for the marquee five-year improved by five basis points, but the uninsured five-year fixed actually rose 10 basis points (yes, despite the 25-basis-point central bank cut). That’s reflective of the Big Six Banks ’ stranglehold on uninsured mortgage funding, as they control the rates their most aggressive competitors can sell for.

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