Rates are breaking out. Canada’s widely watched 5-year bond yield just hit a seven-month high. That’s typically bullish for fixed mortgage rates. Trendsetter RBC wasted no time this morning. It ran a press release announcing it was boosting 3-, 4- and 5-year fixed rates by 10, 20 and 20 bps, respectively. RBC doesn’t usually issue press releases when it’s merely...
Special to RateSpy, By John Bordignon, Capital Markets Consultant Earlier this year, while calling for innovation in the mortgage industry, Bank of Canada Governor Stephen Poloz discussed the need for mortgages longer than five years. Longer-term mortgages, he explained, would benefit both consumers and the Canadian financial system. Based on volumes to date, Poloz’s comments moved the needle only slightly...
Any creditworthy mortgage shopper is practically guaranteed to get a better rate today than they could have at the start of the year. Fixed mortgage rates have been on a ski slope this year, sliding to two-year lows this month. If you’re wondering how far they’ve tumbled, here’s a look. These were the best widely available 5-year fixed rates, as...
Canadian mortgage rates take their cues from many things, and U.S. monetary policy is near the top of the list. That’s why today’s Fed rate cut—the first since the financial crisis—is meaningful to borrowers. Fed decisions always move Canadian rates in some respect but in this case, key questions remain. Here are the two biggest ones. How Many Cuts Are...
The latest intel from Canada’s mortgage market… Rates Bounce Bigly Canada’s 5-year bond yieldcatapulted to 1.53% on Friday. Its 11-basis-point gain was the biggest since June 2017. That establishes at least a short-term bottom and suggests the best fixed mortgage rates probably won’t drop much more near-term. In fact, if yields close up in the 1.60’s, the lowest 5-year fixed...
Quick takes from Mortgageland… Most 5-year Fixed Rates Now in the High 2’s If you’re out there mortgage shopping, you can thank Trump’s tariff madnessfor saving you some basis points. Trade uncertainty is pounding bond yields and fixed rates are slowly following (key word being “slowly”). Multiple big banks are now quoting sub-3% rates (non-publicly) for well-qualified borrowers. If yields...
The gap between the best 5-year fixed rates and best variable rates is the smallest its been in two and a half years. We’re talking less than 1/8th of a percentage point between them. Depending on the equity a borrower has, folks can even find 5-year fixed rates that are below the best variable rates. What’s Provoking It One reason...
The latest happenings from the rate world: HSBC Won’t Let Up Despite moving to an everyday-low-rate online model a few years ago, competitors keep thinking (or maybe hoping) that HSBC is just a flash in the pan. Then it does what it did today. The bank hammered rates lower this morning, to: 2.74% for insured 5-year fixed mortgages (down 15...
Bond yields have found at least a near-term bottom after four-and-a-half months of declines. That means Canadian fixed mortgage rates may also have found a bottom…for now. Here’s a quick look at the lowesteffective 5-year fixed rates, and how far they’ve fallen since the peak last fall: Insured: 2.79% -44 bps Insurable (80% LTV or less): 2.93% -40 bps Uninsured:...
Quick news nuggets from Canada’s mortgage rate market: Not only has the yield curve inverted, but in some cases the mortgage rate curve has inverted. Among uninsured mortgages available in multiple provinces, for example, thebest 5-year fixed rateis now belowthebest variable rate. There’s still tremendous value in insured variable rates—now effectively as low as 2.54% in some provinces. Markets are...
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