Categories for Hot Rates

Tangerine’s 10-year Fixed Rate Smashes Record

—The Mortgage Report: Nov. 23— Bond yields stopped falling three months ago but that hasn’t stopped Tangerine from launching one sweet 10-year special. If you: think the economy will turn around in 2021, and think rates are near a medium-term (or longer) bottom, and want maximum protection from future rate increase, thenTangerine’s new 10-year fixed rate might just check your...

“Real” Mortgage Carrying Costs Have Never Been Higher

—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...

One-Year Mortgages Edge Closer to 1%

Not One and Done If you’re going to gamble on a short-term rate, you could do a lot worse than 1.29%. On a contract rate basis, that’s the lowest fixed mortgage rate Canada has ever seen. And it’s probably not done dropping yet. This latest one-year offer is available in select provinces and applies to high-ratio and insurable mortgages up...

Throne Speech Giveaway Portends Faster Recovery in Rates

The boom, not the slump, is the right time for austerity at the Treasury.—John Maynard Keynes (1937) Canada’s Liberal government ripped a page out of Keynes’ playbook Wednesday, promising to use “whatever fiscal firepower is needed” to rebuild the economy and recover “one million jobs.” That includes multi-billion-dollar-price-tag initiatives like extending the Canada Emergency Wage Subsidy through summer 2021, making...

A New Low for 5-year Refinance Rates

—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...

Canada’s Newest Fixed-rate Record: 1.39%

—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...

A New Frontier for Fixed Mortgage Rates

—The Mortgage Report: Aug 21— Boldly Going Where No 5-Year Fixed Rate Has Gone Before For the first time, pricing on Canada’s most in-demand term is now effectively as low as 1.59%. That’s for default-insured 5-year fixed mortgages in Ontario. Consider that just 18 months ago rates were double what we see today. On the uninsured side, we’re getting multiple...

People Are Locking in Till 2030 at Record Low Rates

—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...

It’s Time for a Fixed Rate

—The Happy Canada Day Report: July 1— Fixed or Bust: Canada’s lowest nationally available conventional variable rate is just nine basis points cheaper than a comparable 5-year fixed rate. That minuscule “fixed-variable” spread is now 80% narrower than its 10-year average. In other words, the market is no longer compensating new borrowers for the risk of a floating-rate mortgage. And...

New 1-Year Fixed Rate: Lowest Since 2016

—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...