—The Mortgage Report: Sept. 30— The costs you’re expected bear to carry a new mortgage have never been higher—at least based on how lenders assess you as a mortgage applicant. Rocketing home prices and a stubbornly high “stress test rate” have pushed the basic inflation-adjusted cost to carry a home (i.e., average mortgage payment + heat + property taxes) to...
—The Mortgage Report: Sept. 15— Never before has Canada seen an uninsured 5-year fixed nationally advertised for 1.84%. But on Tuesday we saw it, courtesy of Tangerine. At 1.84%, Tangerine’s rate is now just 4 basis points above the lowest nationally advertised uninsured variable rate. As usual, you’ll find even lower default-insured and insurable 5-year fixed offers if you shop...
Quick Rundown Today’s Announcement:No change to rates Overnight rate:0.25% Prime Rate:2.45% (also no change; seePrime Rate) Market Rate Forecast:No BoC hikes until at least 2023 BoC’s Headline Quote: “The Governing Council will hold the policy interest rate at the effective lower bound [intended to be 0.25%] until economic slack is absorbed so that the 2% inflation target is sustainably achieved.”...
—The Mortgage Report: Sept. 8— One of the most important factors determining your success with a mortgage is the rate, relative to other rates you could have chosen. Over the long run and other things equal: The higher your rate relative to other rate options, the worse your odds of success. The lower your rate relative to other rate options,...
—The Mortgage Report: Aug. 27— Closer to Free Money Never on record has a fixed-mortgage contract rate undershot 1.40% in Canada, until Thursday. This one-year fixed offer launched exclusively on RateSpy.com and it’s one more sign of the times. A sign that markets expect no significant boost in rates for as far as the eye can see. Just 18 months...
—The Mortgage Report: Aug. 25— Yes. The Question is: When? Most readers know that fixed mortgage rates follow bond yields. But it’s bond yields south of the border that are particularly influential for Canadian mortgage rates — given U.S. influence on our economy. To get to 1.49% on discounted 5-year fixed rates, we need a Canadian 5-year bond yield near...
The debate over fixed or variable rates never ends. But there are now two things that are far less debatable: 1) The Bank of Canada is telling us that prime rate has likely hit bottom, and 2) “Safer” 5-year fixed rates are now as low as “riskier” variable rates. (Safer, particularly if you choose a fair penalty lender.) Given the...
—The Mortgage Report: Aug. 4— Historic 5-year Yield: On Tuesday the U.S. 5-year Treasury traded just 19 basis points above zero—where it’s never been before. If it drops a smidgen lower, that could be enough to drag Canada’s 5-year yield (and hence, 5-year fixed mortgage rates) to record lows as well. Stay tuned. Setting the Pace: Tangerine now has the...
—The Mortgage Report: July 31— Snapping Up Bonds: Fixed-rate mortgage shoppers dreaming of lower rates better hope for lots of bond buying in the months to come. And that’s what we’re getting from the Bank of Canada. The BoC is buying a lot of 5-year bonds, which heavily influence 5-year fixed mortgage pricing. Under theGovernment of Canada Bond Purchase Program...
—The Mortgage Report: July 29— Decade Rates at All-time Lows: In Ontario, folks can now enjoy borrowing cost certainty for a tenth of a century, at effective rates as low as 2.59% through brokers. 10-year fixed rates have literally never been lower. Most borrowers wouldn’t think of paying 50+ basis points more (on top of a 5-year fixed) to get...
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