3:12 p.m. Update Crude Reality: A semblance of optimism returned to markets today, but what really bears watching is oil. COVID-19 and other concerns aside, Canada’s economy is not out of the woods until oil prices run higher. There’s a rumour the Saudis and U.S. could ally on oil, which could be bullish. We’re going to get good news on...
For now, at least, cost pressures are easing slightly for Canadian mortgage lenders.
We're seeing and hearing from multiple customers and mortgage brokers that their mortgage approvals are being overturned by lenders due to coronavirus layoffs.
5:35 p.m. Update National Bank Hikes: Falling bond yields and government moves to bolster mortgage liquidity didn’t keep the country’s sixth-largest bank from lifting mortgage rates. National boosted two fixed specials today: 4-year: 2.89% to 3.29%; 5-year: 2.94% to 3.34%. Systems Hack: As if COVID-19 wasn’t enough, it turns out that the broker industry’s primary application submission platform, Filogix Expert,...
6:58 p.m. Update CMHC on Payment Deferrals: “CMHC has provided increased flexibility to defer mortgage payments on its insured homeowner mortgage loans, which means lenders are now able to defer payments on a borrower’s CMHC-insured mortgage up to six months without CMHC’s approval. Borrowers should speak to their lenders directly by going through their default management department to confirm if...
Some quick hits on the mortgage/rate market (we’ll update these throughout the day): 4:14 p.m. Update Yields Soar: Canada’s 5-year bond yield launched 13 bps today as investors sold everything that wasn’t nailed down, including stocks and bonds, and rushed into cash. Rocketing bond yields are bullish for fixed mortgage rates and we’re seeing more lenders, including banks, react by...
Some quick hits on the mortgage/rate market (we’ll update these throughout the day): 5:14 p.m. Update Behold Sub-2% Variables:Existing variable-rate borrowers with prime – 1.00% are now enjoying 1.95% mortgage rates. Some homeowners have prime – 1.30% or lower. That’s an incredible 1.65%. New borrowers can still get prime – 1.00% or better but, as noted below, they have to...
It feels like it’s starting. Like the coronavirus impact is starting to have a negative effect on mortgage pricing. If you need a mortgage in the next 90-120 days and are leaning towards a variable rate, it may be prudent to apply soon. The concern: we’re now starting to see some lenders cut back on their variable-rate discounts from prime...
Five quick bulletins from the mortgage market: 1. Canada’s 5-year swap, which guides fixed mortgage rates, is on track for one of its biggest down days in history. Driving this carnage is the biggest oil rout since the 1991 Gulf War. JP Morgan says, “The oil and gas sector represents about 6% of [Canada’s] GDP but we expect the hit...
Here’s the latest on mortgage rates following the maniacal once-or-twice-a-decade-type week we just had in the markets… Where Mortgage Rates Landed A quick look at this week’s major rate drops from the Big 6 banks: Prime Rate Banks slashed their prime rates on Thursday from 3.95% to 3.45%—the most since the credit crisis.That story. 5-Year Fixed Rates Typical big-bank unpublished...
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