You know the situation is bad when Canadians need to be told by a bank to shop around for mortgage rates. While we at the Spy beat that drum daily, banks are normally happy to sell you mediocre “special offer” rates, or even posted rates (for renewers who are gullible enough). That’s why it’s eye-catching to see Larry Tomei, Executive...
If we only had a milli-bitcoin for every time someone said this: “…Long-term data tells us that a variable-rate mortgage is the best option.”—LowestRates.ca No, it doesn’t. What the “data” tell us is thata variable-rate mortgage was the best option in a specified timeframe based on particular assumptions. The data in no way mean thata variable-rate mortgage is the best...
BMO now has the longest regular rate guarantee period of any Big 6 Bank. On Tuesday, Canada’s fourth largest bankupped its rate hold period from 90 to 130 days. Prior to that, 120 days was the longest normal rate hold of any big bank. Note: “Normal” rate hold means a rate hold that applies to the lender’s regular rates. Banks...
Your interest rate burden got no heavier today. The Bank of Canada gave floating-rate borrowers a breather by leaving its policy rate at 1.25%. Holding the Bank back were theseconcerns: NAFTA “uncertainty” “Slower than expected” Q4 GDP growth Weaker than expected “wage growth” Canadians’ “sensitivity to higher interest rates” Household credit growth that’s dropped for “three consecutive months.” Inflation, which...
With the spring market on deck and bond yields sliding, big banks are sharpening their pencils on 5-year fixed pricing. Today we saw BMO cut its “Smart” 5-year fixed rate by 20 basis points, from 3.49% to 3.29%. (Best BMO mortgage rates) Then we saw CIBC launch a new 3.19% 5-year for high-ratio mortgages only. (Best CIBC mortgage rates) That...
It used to be a lot easier to understand mortgages. But since January 2016 alone, we’ve seen: Minimum down payments increased to 10% for any portion of a mortgage above $500,000 Restrictions on refinancing Rates become much more dependent on: loan-to-value (because of changes to default insurance) amortization credit scores A stress test required for all insured mortgages, using the...
HELOC balances appear to be surging at their fastest pace in five years—even faster than mortgages, reports Bloomberg. That’s got ever-vigilant regulators raising an eyebrow. And it’s got certain lenders we talk to expecting HELOCs to be the next area of mortgage rule tightening. Under the Microscope Currently, 2 in 5 secured residential loans in this country (roughly 3 million)...
Mortgage growth in Canada is like King Kong—it’s hard to kill. You can riddle it with bullets (mortgage rules), but it just keeps beating its chest and roaring on. More than 60 mortgage rule tightenings later (including insurance and securitization fee increases) the question is, has Canada’s mortgage market finally been shot down? Nationally, average home prices are already down...
If you like low mortgage rates, there was good news from Canada’s housing agency Wednesday. CMHC CEO Evan Siddall said a proposal to have lenders potentially share losses when insured borrowers default is now on the back burner. This Department of Finance scheme was sold as a way to encourage more prudence in lender underwriting. But it also threatened to...
Not exactly. One month after the mother of all mortgage rule changes, the wheels are still turning in Canada’s real estate and mortgage market. They’re just turning slower. But make no mistake, OSFI’s mortgage stress test has changed the landscape—for both borrowers and lenders. Here’s how: Fewer Mortgages Our best anecdotal guesstimate after speaking to a sampling of federally regulated...
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