—The Mortgage Report: June 22— Just the Latest Head-Turning Rate: What would a week be without a new low in mortgage rates? The latest term to wear the low-rate crown is the 1-year fixed, thanks to a new promo available through deep-discount brokers. Priced at 1.69%, it’s the cheapest effective rate on a 12-month mortgage since 2016. It’s also officially...
—The Mortgage Report: June 19 — Long-term Money on Sale: If you’re willing to commit to a decade-long term, and you live in Ontario, you can now do it for less than at any time in history. 10-year fixed rates are now as low as 2.79% (an effective rate including cash back) for well-qualified borrowers in Ontario. Outside of Ontario,...
— The Mortgage Report : June 16 — Tiff on the Hot Seat: In his first news public hearing since being minted as BoC Governor, Tiff Macklem got pelted with questions from MPs. Among his notable statements: “The biggest risk to Canadians not being able to repay their mortgage is not having a job.” “…We’re in a deep hole and...
The Mortgage Report – June 12 Double-dip: As is often the case, bad news for the economy is good news for interest costs. Investor worries over a potential second wave of COVID-related shutdowns helped push 5-year Canada Mortgage Bond (CMB) yields to an all-time low on Monday. Recent Bank of Canada buying might have also helped. The reason this matters...
Mortgage Report – June 11 A Thursday Thumping: Fixed mortgage rates follow bond yields most of the time. Yet, despite stocks surging since March on recovery hopes, bonds have been arguably more realistic (less optimistic). Well, today stocks converged meaningfully with bonds…finally. The talking heads on TV say the Fed’s outlook and accelerating COVID cases scared the market and we’ve...
The Mortgage Report – June 10 Dot Dot Dot Plot: The U.S. Federal Reserve, which sways Canadian rates more than many realize, was more pessimistic than expected in its rate announcement today. It’s “Dot Plot” (the Fed’s official rate forecast) now projects no rate hikes for 2020, 2021 and likely 2022. It’s unlikely Canada deviates much from the Fed’s path...
A Recovery for the Ages: Against all odds, and despite the biggest unemployment surge in a 3-month span ever, stocks have erased 2020 losses. ICYMI: Private default insurer Genworth Canada saw no need to follow CMHC and tighten its mortgage rules. Canada Guaranty, which has the lowest loss ratio in the mortgage insurance industry, made the same determination, saying, “Given...
The Mortgage Report – June 8 2:35 p.m. Update CMHC on Its Own: If you’re buying with less than 20% down and can’t qualify under CMHC’s stricter insured mortgage rules, you still have options. Effective July 1, CMHC is lowering the maximum debt you can carry, raising its minimum credit score to 680 and banning certain borrowed down payments. But...
Quick Summary Today’s Announcement:No change to rates Overnight rate:0.25% Prime Rate:2.45% (no change; seePrime Rate) Market Rate Forecast:No BoC hikes until 2022 BoC’s Headline Quote:“…The Canadian economy appears to have avoided the most severe scenario…” BoC on the Economy:“…The Bank expects the economy to resume growth in the third quarter.” BoC’s Full Statement:Click here Next Rate Meeting:July 15, 2020 The...
The Mortgage Report – June 2 HSBC Cuts: HSBC dropped two key variable rates: 5yr (regular): 2.25% to 2.15% (Prime – .30) 5yr (high ratio): 1.95% to 1.85% (Prime – .60) At the height of the COVID crisis, banks hiked their variable rates to prime – 0%. At the time, we wrote that variable-rate discounts will improve significantly once again....
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