This week on RateSpy TV: Rate Impact from the LatestMortgage Rules:Federal MPs have been interrogating government officialsover their new mortgage policies. We dig intohow the controversyaffects your rate. Fixed and Variable Rates Diverge:Like the song goes, “you gotta keep ’em separated.” But are spreads now wide enough for you to float your mortgage? The Spy breaks it down. Rate Surveillance:Market...
Almost every mortgage shopper has thesame question at some point,especiallywhen rates are surging or diving: “Should I Lock in My Mortgage Rate?” Answer this correctly and you’ll save thousands in interest. Pick the wrong rate type, and it could cost you just as much. Seemingly everyone’s got an opinion on fixed or variable rates. But unless they’ve taken the time...
This week on RateSpy TV: HSBC’s sizzling 2.35% 5-year Fixed: We’ll tell you if it’s too hot, how HSBCcan price this low and how long this killer-special may last. BMO’s $1,000 cashback promo:Cash isnice but first-timers betterthink twice. Rate Surveillance: What do market rates needto do to make new highs? Stars & Dogs: The best and worst mortgage termsof the...
Whatdo interest rate cycles of the past say about rates today? CNBC recently interviewed notedWall Street technical analyst Louise Yamada and asked her thatsame question. If you’re a chart and market history geek, her answers will be of interest: On the length of cycles Interest rate cycles have typically lasted for decades, from22 to 37 years. “The reversals from rising...
Buying a home with less than 20% down? The government’s about to milk you for a few more grand. Come March 17, CMHC is boosting its default insurance premiums for the third time in three years. Here’s what they’re rising to, based on down payment size: Less than 10% down: +0.40% to 4.00% Between 14.99 and 10% down: ...
Trump’s battle-cry has been “jobs, jobs, jobs,” andthat’shadbondtraders screaming“sell, sell, sell.” Why? Because a Trump-pumpedeconomy suggests: more U.S. government borrowing (greaterbond supply is bullishfor rates) more business and consumer borrowing (higherdemand for money is bullishfor rates) more inflation risk (a haunting thought for bond investors, and bullishfor rates). Meanwhile, the world’s monetary kingpin, Janet Yellen, says the U.S. labour market...
Canadian rates will follow their own path.Our economy isn’t sturdyenough to trackU.S. rates higher…for long. Economists have been singing that tunefor months now. And yet,Canada’s closely watched 5-year yield andits American cousin (the U.S. 5-year note) are moving together like train tracks. Why aren’t Canadian rates diverging more from U.S. rates? Technical factors aside, maybe the all-knowing market machine sees...
If you got a mortgage last year and paid less than 2.76%, you beat the averages. That was the typicalrate for a new mortgages in 2016, according to Mortgage Professionals Canada’s (MPC’s)annual mortgage survey. Itwas a good year for those renewing a mortgage. A majority (64%) switchedinto a lower rate, with theaverage being 2.70%. This data confirms the obvious, of...
It’s getting more expensive to lower your mortgage payments. TD became the second major bank today to announce higher rates on amortizations over 25 years.RBC startedthis trend a few weeks ago. “Effective Dec. 1, 2016, new fixed rate mortgages that have an amortization of greater than 25 years will have an additional 10 bps added to their overall rate,” said...
Last week RBC threw a 2.94% 5-year fixed rate against the wall to see if it would stick. It hoped its bank peers would seize this opportunity for extra profit by raising their rates commensurately. But RBC’s trial balloon ain’t flyin. Not yet anyway. None of its peers have matched the extentof RBC’s rate hikes. Most have only raised 10-20...
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