Interest rates are at historical lows and it doesn’t look like that’s due to change anytime soon.
Of course if you could predict future changes with accuracy you could become incredibly wealthy.
It’s the unknown that’s the challenge and that’s why some people chose to pay a premium to lock in todays low rates for many years.
Unfortunately you can’t get the incredibly low rates that US buyers enjoy on a 25 year term, but 10 year rates have fallen along with 5 year and variable rates.
Ten year products are growing in popularity recently with terms available as low as 3.6% according to this article in the Financial Post.
only about 1% of the market locks in for longer than 10 years, Bank of Montreal recently did away with an 18 year locked in mortgage:
“We had to shelve that. It wasn’t a very accepted product by customers,” said John Turner, director of mortgages at Bank of Montreal. “People have a problem getting their head around that long of a commitment.”