When winter has finally made its way out of town and spring has finally sprung, many Albertans relish a renewed sense of hope and cheerfulness. This can lead to a fresh start in many ways: spring cleaning, a new wardrobe, a new hobby, or a new home!

According to new data from ratehub.ca the spring/summer season may be the best season to get a mortgage. The online personal finance resource compiled information on the best fixed and variable rate mortgages for the past three years and found that each year between the months of April and July there was a drop in rates.

This same phenomenon can be seen at retailers everywhere. One trip through the closest mall will show you just how many companies put on spring sales. Mortgage lenders know this season is a good time to offer discounts and bring in buyers.

“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.”

“Lenders also come out with special promotion offers to incentivize borrowers to lock in a rate,” Laird went on to explain. “Consumers can expect to see cash-back deals to help with closing costs and refinance fees.” This kind of deal is great for mortgage owners who want to take advantage of a new rate but who worry about the cost of refinancing.

According to ratehub’s data the 2016 fixed and variable rates both went down in 2016. Between January and March the best five year fixed rate mortgage averaged 2.37% and the best five year variable rate mortgage averaged 2.06%. Then, between April and July of the same year these rates dropped respectively to 2.33% and 1.97%.

Again in 2017 the best five year fixed rate average was 2.3% and dropped to 2.25% in the April-July months. The best 5 year variable rate average was 1.8% and dipped to 1.69%.

In 2018 we experienced a rising rate environment, but yet again the rates dropped for the spring/summer season. The best fixed rate dropped from 3.2% to 3.04% and the best variable rate dipped from 2.2% to 1.86%.

Mortgage lenders are highly motivated to participate in competitive spring pricing, says Laird. “[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 springtime just isn’t the best time for you to get a mortgage, chances are you’ll get another opportunity at low rates before the next year. “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.”

When you start shopping around make sure you find the best rate. The easiest way to do this is to talk to Your Trusted Mortgage Broker who will know what all the best deals are and where to find them. Call us today to get started.