Canada’s fifth-largest bank reportedly has an unpublished 1.49% 4-year fixed special right now. That’s a new 4-year fixed record-low, and the lowest uninsured fixed rate in the country. It’s also available on default-insured mortgages. Four-year fixed rates are nowhere near as popular as 5-year rates. They’re an oft-overlooked term with only 1 in 16 Canadians choosing them, according to Mortgage...
—The Mortgage Report: Sept. 10— CIBC has dropped the following special fixed rates: 5yr (high-ratio): 2.07% to 1.97% 5yr (uninsured): 2.24% to 2.14% 7yr: 2.71% to 2.61% It’s the first time ever that a Big 6 Canadian bank has widely and openly advertised a 5-year fixed rate under 2%, albeit it’s only on default-insured mortgages. This development is more symbolic...
Effective this week, it gets a little easier to buy a house or refinance. On Saturday, BMO and CIBC shaved 15 basis points off their posted 5-year fixed rates. That’s enough to drop the benchmark 5-year posted rate to 4.79%. Given regulators use this benchmark rate to calculate Canada’s minimum mortgage stress test, today’s cuts mean you’ll now need less...
—The Mortgage Report: Aug. 5— Is This a Joke?: “The CMHC defines housing as affordable when ‘it costs less than 30% of a household’s before-tax income,’ which includes rent or mortgage (principal and interest) payments, property taxes and other home bills,” reports the Financial Post. The punchline is, you have to move to a remote fishing village in Newfoundland to...
—The Mortgage Report: July 16— Falling Equilibrium: The Bank of Canada now estimates that Canada’s “neutral rate” is 25 bps lower than it was last year. The neutral rate is the policy interest rate that keeps inflation at its 2% target without stimulating or slowing the economy over the medium to long term. The Bank now pegs neutral at 2.50%,...
TD and CIBC just became the first Big 6 banks to advertise 5-year fixed rates below 3% since 2017. This morning, TD and CIBC chopped their advertised 5-year fixed specials by 32 basis points (to 2.97%) and 30 bps (to 2.99%), respectively. Banks seldom cut that much in one sitting. Albeit, sources tell us both banks have been selling 5-year...
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