It’s rate cuts galore this week as lenders play catch-up to the supersized drop in funding costs.

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There are many ways to track fixed mortgage funding costs, but one of the best ways is to watch swap rates. The four-year swap — which I follow daily — has nosedived 95 basis points since May 1. It’s now flirting with a two-year low, and it’s only a matter of time before it breaks that level.

That’s creating some bargains — compared to last year, anyway. Leading insured five-year fixed rates, for example, just dipped to 4.29 per cent — a 16-month low.

The week’s most notable fixed-rate drop, however, was from True North Mortgage, which slashed its insured two-year fixed to 4.99 per cent. “A two-year rate is highly appealing to borrowers who anticipate that the prime rate will continue to decline over the next 24 months,” said True North chief executive Dan Eisner yesterday.

For insured borrowers with a longer-term mortgage need, Nesto’s adjustable-rate mortgage, at 5.40 per cent, is the lowest floating rate in Canada. If rates pan out as the bond market projects, it’s hard to find a better money-saving option.

On the uninsured side, there were no notable movements among the national rate leaders this week, despite all the cuts at laggard lenders. We’ll likely see further fixed discounts next week.

One nationally-leading offer worth noting is Pine Mortgage’s three-year at 4.94 per cent. It’s currently the most economical uninsured fixed rate among national lenders. The company also has a five-year fixed that leads the country at 4.74 per cent.

Depending on your province and preferred term, you’ll find even lower rates at certain regional lenders. A case in point is Butler Mortgage’s 5.75 uninsured variable, available in Alberta, B.C. and Ontario. For risk-tolerant uninsured borrowers, it performs best in rate simulations, assuming the forward rate outlook is roughly accurate.

As usual, top deals like those above are for well-qualified borrowers only. They often come from online providers that trade rate savings for in-depth advice and hand-holding. If your mortgage needs are more nuanced, find an experienced mortgage advisor. You might pay a bit more upfront, but intelligent guidance on the optimal product and strategy often saves more down the line.

Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.

Want to know more about the mortgage market? Read Robert McLister’s new weekly column in the Financial Post for the latest trends and details on financing opportunities you won’t want to miss.

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Mortgage rates

The rates displayed below are updated by the end of each day and are sourced from the Canadian Mortgage Rate Survey produced by MortgageLogic.news. Postmedia and Imaginative. Online Inc., parent of MortgageLogic.news, are compensated by certain mortgage providers when you click on their links in the charts.