After a long winter many Canadians feel like they’re coming out of a deep freeze. As soon as the weather warms up you’ll see Albertans out of doors as much as possible. Whether they’re soaking up the sun, getting started on their spring cleaning, or just taking the opportunity to be outside without the risk of their eyelashes freezing together, they all have one thing in common: a sense of a new beginning.

For many this new and bright feeling of optimism will lead them to finding a new home. According to new data from ratehub.ca, this season may be the best one to get a mortgage.

Ratehub took a look at the best fixed and variable rate mortgages since 2016 and discovered that each year between the months of April and July there was a noticeable drop in the best rates, despite the fluctuation of rates throughout the other months of the year.

We see the same thing happen at the mall when all the stores start putting on spring and summer sales. Mortgage lenders get on board with the shopping frenzy too!

“Lenders and mortgage providers come out with their strongest promotions during the busy spring and summer home-buying season,” James Laird, president of CanWise Financial, said. “Regardless of the interest rate environment, springtime is when lenders are willing to make the smallest margins in order to win business.”

Laird went on to explain, “Lenders also come out with special promotion offers to incentivize borrowers to lock in a rate. Consumers can expect to see cash-back deals to help with closing costs and refinance fees.” This is a great incentive if you already have a mortgage and want to make a change but you aren’t coming up on renewal.

According to the data from Ratehub both the fixed and variable rates went down in the spring and summer of 2016. Between January and March the best five year rates were averaging 2.37% and 2.06% respectively. But between April and July they dropped to an average of 2.33% and 1.97% respectively.

Something similar happened in 2017 when the best five year fixed rate average dropped from 2.3% to 2.25% and the best five year variable rate average dropped from 1.8% to 1.69%.

In 2018 we saw a rising rate environment throughout the year, but still the best five year fixed rate average dropped from 3.2% to 3.04% through April to July. The best five year variable rate average also dropped decisively from 2.2% to 1.86%.

According to Laird, lenders are motivated to get in on competitive spring sales. “[Lenders] do so in order to hit their annual mortgage volume targets… In most cases, lenders will hit their targets during Q2 (April to June) and, as a result, tend to be less competitive with promotions during the latter half of the year.”

If you don’t get a chance to take advantage of spring mortgage pricing, you probably won’t have to wait until next year to see a good deal. Lenders are likely to drop prices again during the month of October. “All of Canada’s major domestic private banks end their fiscal year on October 31,” Laird said. “Lenders who want to get an early start on their targets for the next year will come out with their promotions during this time period.”

As any good shopper would, make sure you look around for the best deals before you settle on a mortgage. The best place to find out where all the deals are is with Your Trusted Mortgage Broker. Contact us today to find out what this spring’s best rates are and where to find them!