5:35 p.m. Update National Bank Hikes: Falling bond yields and government moves to bolster mortgage liquidity didn’t keep the country’s sixth-largest bank from lifting mortgage rates. National boosted two fixed specials today: 4-year: 2.89% to 3.29%; 5-year: 2.94% to 3.34%. Systems Hack: As if COVID-19 wasn’t enough, it turns out that the broker industry’s primary application submission platform, Filogix Expert,...
6:58 p.m. Update CMHC on Payment Deferrals: “CMHC has provided increased flexibility to defer mortgage payments on its insured homeowner mortgage loans, which means lenders are now able to defer payments on a borrower’s CMHC-insured mortgage up to six months without CMHC’s approval. Borrowers should speak to their lenders directly by going through their default management department to confirm if...
Some quick hits on the mortgage/rate market (we’ll update these throughout the day): 4:14 p.m. Update Yields Soar: Canada’s 5-year bond yield launched 13 bps today as investors sold everything that wasn’t nailed down, including stocks and bonds, and rushed into cash. Rocketing bond yields are bullish for fixed mortgage rates and we’re seeing more lenders, including banks, react by...
Some quick hits on the mortgage/rate market (we’ll update these throughout the day): 5:14 p.m. Update Behold Sub-2% Variables:Existing variable-rate borrowers with prime – 1.00% are now enjoying 1.95% mortgage rates. Some homeowners have prime – 1.30% or lower. That’s an incredible 1.65%. New borrowers can still get prime – 1.00% or better but, as noted below, they have to...
Some quick hits on the mortgage/rate market (we’ll update these throughout the day): 7:29 p.m. Update Prepare for “Prime Rate Variables”:Expect one or more major banks to hike “discounted” variable mortgage rates to prime (2.95%) on Tuesday. That’s right, there will be no more variable discount from those lenders (i.e., prime – 0%). This will essentially negate the Bank of...
The world’s most powerful central bank has slashed its main interest rate by one whole percentage point. This is the U.S. Federal Reserve’s largest emergency cut in its100+ year history. The move is a desperate bid to keep money markets functioning and stimulate borrowing and economic activity.Malls, restaurants, bars, factories, sports seasons, schools, international borders and even Vegas casinos are...
Prior to the last few days, consumers had expected falling Bank of Canada rates and lower bond yields to translate into cheaper mortgage rates. And they have, big-time. But these two benchmarks aren’t the only things that determine mortgage pricing. Borrowers were reminded this weekend that liquidity and credit risk are also in the equation. Ten days ago we noted...
Our Big 6 Banks chose not to announce their prime rates following Friday’s surprise Bank of Canada rate drop. Instead, people in a floating rate mortgage or HELOC must wait to learn how the BoC’s move will impact their budgets. Banks could take a few days or more than a week. This isn’t unheard of. Back in 2015, when the...
The Bank of Canada has made an unscheduled emergency rate cut for the first time since the 2009 financial crisis. Today, it dropped its overnight rate half a point to 0.75%, its second 50-bps cut in nine days. In a statement, the BoC said: “It is clear that the spread of the coronavirus is having serious consequences for Canadian families,...
Canada could see government interest rates below zero for the first time in history. That’s not a prediction, but it’s a real possibility. The probability of recession has surged from the coronavirus pandemic and oil market collapse. The Bank of Canada has just 125 basis points of rate-cutting left before it hits zero. That is insufficient ammunition to fight the...
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