The country’s largest mortgage lender was hemorrhaging market share in 2016. At the time, it was a grave worry in RBC management circles — as mortgages are a foundational business. Home loans are often the first entry into a customer’s wallet. They provide significant returns on equity and they come with high borrower retention rates (more than 90% of RBC’s...
Monday was a reprieve from surging rates in the bond market. Canada’s 5-year swap rate, a good lead indicator of fixed mortgage pricing, fell back towards earth after February’s parabolic surge. So far, four of the Big 6 banks have boosted fixed rates following that leap in funding costs. Here are some of the big names that jacked up fixed...
We heard from a reader last week who was declined for a mortgage by a Big 5 bank. The problem was not with him, however. The problem was his banker’s ineptitude. Fortunately for Ralph (his name), he was particularly well-versed in the bank’s guidelines, having researched rental financing in the past. When the banker told him he was declined, Ralph...
Mortgage Report – Weekend Edition Prices Tumble in April: The national average home price in Canada has plunged almost 10% in one month (April). That’s never happened before in CREA data going back to 1980. The next closest month-over-month drop was -7.6% in April 1989. The data was skewed partly by the GTA’s 11.8% nose-dive. Home Inventories Skyrocket: The total...
Hopefully Not Reality: Despite the government’s relief plan, including mortgage payment deferrals—1 in 10 (9%) of mortgagors say they won’t be able to pay their mortgage in three months or less (Source: DART & maru/BLUE Survey). Few in the industry expect anywhere near 9% defaults, but the numbers we do get may surprise people. Back in the 1980s, prime mortgage...
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...
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