All it takes to derail an uptrend in mortgage rates is one little global crisis. And that’s potentially what we’ve got. Canada’s 5-year bond yield—which drives fixed mortgage rates—has plunged. As of this writing, it’s down almost 30 basis points from its high two Fridays ago. This latest nosedive is courtesy of shoot-first-ask-questions-later AAA bond-buying. (Rates move inversely to bond...
The worst trap a mortgage expert can fall into is thinking they’re shrewd enough to predict interest rates. Yet, they do it because they: Think they’re smarter than the market Want media, readers or clients to think they’re smarter than the market Are completely delusional. The most comedic rate commentators are the ones who couch their predictions in vagaries so...
Prime – 1.00% is a primo mortgage rate. No question about it. Yet, there are people complaining that it’s not the “prime minus one” of old. Prior to January 2015, critics point out, prime rate was 200 basis points (bps) above the Bank of Canada’s key lending rate. Now, banks have pushed this margin to 220 bps. The fatter this...
The big fella, RBC, has come to play with its very ownprime – 1.00% offer. So has CIBC, according to our branch contacts.(CIBC’s official comment is that, “Our posted rates…have not changed,” but that says nothing about its discretionary rates, which are lower. Spokesperson Jason Wesley suggests people “speak to a financial advisor” to get a quote.) It’s been years...
“Rate war” is a cliché in this business. But that’s exactly what we’ve now got in the variable-rate mortgage market. BMO started it all with its record-setting prime – 1.00% offer. TD then promptly matched. Now we’re hearing from Scotiabank branch sources that it’s offering prime – 1.00% as well — but only for newclient applications and not for refinances...
One week ago BMO stunned competitors with arecord variable-rate discount. Now, one of its juggernaut competitors—TD—is responding. TD has just matched BMO’s special with its own prime – 1.00% offer (“TD prime” – 1.15%, to be exact). That ties BMO for Canada’s lowest variable rate on an uninsured mortgage. Remember, uninsured rates are required if you’re refinancing, buying a home...
It turns out, we weren’t sniffing glue by arguing that 47% of mortgages are not up for renewal this year. “Some pundits have been circulating inaccurate information recently,” National Bank Financial (NBF) said in a report Thursday. “One is the affirmation that almost half of Canadian mortgages have been or will be up for renewal this year, suggesting an imminent...
Big news here for people wanting to switch lenders with a mortgage that was previously refinanced. Until recently, it hasn’t been possible to move your mortgage to a new lender and get ultra-low default insured rates if you had previously refinanced that mortgage.That was due to an interpretation of the insurance rules implemented by the Department of Finance in 2016....
BMO has come out swinging with its latest spring promo. The country’s fourth largest bank is advertising a red-hot prime – 1.00% variable. At 2.45% currently, it’s now the best variable rate for refis in the country. This special is also the largest widely advertised big-bank variable discount we’ve ever seen. As of press time, we’re still getting details and...
Rising rates and new mortgage regulations aren’t enough to scare nearly 1 in 4 Canadians. That’s how many plan to buy a home within the next year. This comes from a new BMOsurvey, which also found the national average price buyers expect to pay is about $474,000. That jumps to $580,000 in Toronto and $603,000 for Vancouver buyers. Most concerning...
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