If you’ve watched mortgage rates for a long time, you know how unnatural this is. The rate on a mortgage with five full years of locked-in interest expensecosts less than the rate on a non-guaranteed floating mortgage with interest risk. In fact, that difference (spread) is the lowest it’s been in decades, based on deep discount rates offered to well-qualified...
If you’ve been waiting for details about the First-Time Home Buyer Incentive (FTHBI) program, hoping it would help you qualify for a mortgage, you may be disappointed. The government finally showed all its cards with the FTHBI scheme and we can’t find many cases where it would actually improvesomeone’s buying power—i.e., bridge the gap between high home prices and what...
For the first time since the stress-test rate last increased (in May 2018), a major bank has cut its 5-year posted rate below 5.34%. RBC confirmed the move Saturday morning, lowering its trend-setting posted 5-year fixed by 15 basis points to 5.19%. Speculation has been running rampant in the industry about the government persuading banks to keep their 5-year posted...
The latest intel from Canada’s mortgage market… Tanker Attack TorpedoesRates There weresparksthis week in the powder keg that is the Middle East. Sea terrorismtriggered fears of war and/or oil supply disruption. That led investors to pile back into “safe” Canadian government bonds. As is usual when the market goes into “risk-off” mode, bond prices rose and yields sank (the two...
Canada has a mortgage rate transparency problem. Too many lenders do not put their best cards on the table. To earn their best rate you have to dicker like you’re buying a rug at the bazaar. These rate games make borrowing cost comparisons needlessly more difficult and inefficient. And that’s exactly what some lenders are aiming for. Take this chart,...
Canada’s third-largest bank has an alluring new4-year fixed rate. It’s the nation’s lowest 4-year fixed since December 2017. But that’s not the most interesting part. This marks the first time in our recollection that a major bank has widely advertised an online-only special and the industry’s best-discounted rate. It’s somewhat of a milestone in rate transparency, one inspired by consumers’...
Sub-2% rates are here again. This time from Toronto-based DUCA Financial Services Credit Union — for default-insured 2-year fixed mortgages. This brand new offer is easily the lowest 2-year fixed rate out there. In fact, it’s the lowest mortgage rate in Canada period, and 57 basis points below the country’s next best offer. “This product is designed to help out...
Banks seldom offer HELOCs for less than prime rate, unless it’s a short-term teaser rate. But suddenly we have two online banks selling HELOCs at discounts to prime. The latest is Tangerine. On Friday,Tangerine lopped 75 basis points off its HELOC rate — cutting it from prime + 0.65% (where it’s been for years) to prime – 0.10%, or 3.85%....
Quick takes from Mortgageland… Most 5-year Fixed Rates Now in the High 2’s If you’re out there mortgage shopping, you can thank Trump’s tariff madnessfor saving you some basis points. Trade uncertainty is pounding bond yields and fixed rates are slowly following (key word being “slowly”). Multiple big banks are now quoting sub-3% rates (non-publicly) for well-qualified borrowers. If yields...
Imagine spending hours of your life to: research the best mortgage negotiate for a better rate apply to refinance at a new lender answer all the new lender’s questions collect all your documents get an appraisal review all the paperwork submit all the documents find a lawyer to close the mortgage get ready to close …then be told just five...
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