Categories for Mortgage Briefs

The Latest Mortgage Updates

Some quick hits on the mortgage/rate market (we’ll update these throughout the day): 7:29 p.m. Update Prepare for “Prime Rate Variables”: Expect one or more major banks to hike “discounted” variable mortgage rates to prime (2.95%) on Tuesday. That’s right, there will be no more variable discount from those lenders (i.e., prime – 0%). This will essentially negate the Bank of...

No Word on Prime Rate + Other Major Mortgage News

Our Big 6 Banks chose not to announce their prime rates following Friday’s surprise Bank of Canada rate drop. Instead, people in a floating rate mortgage or HELOC must wait to learn how the BoC’s move will impact their budgets. Banks could take a few days or more than a week. This isn’t unheard of. Back in 2015, when the...

Rates Hit by SARS 2.0 (?), the Dud First-Time Buyers Program & More

Today’s big mortgage headlines… Coronavirus Rate Sale Bond yields are getting killed as investors pile into bonds for safety. Traders fear a next coming of SARS (which authorities call the Wuhan coronavirus) could be deflationary. That’s weighing on rates as the inflation outlook is a key rate driver. Fear of the unknown has shaved 1/4 point off Canada’s 5-year bond...

A “Historic Nightmare,” But Not for Interest Rates + Mortgage Nuggets

Iran is still miffed about the U.S. exterminating its #1 general. It’s reportedly contemplating 13 potential strategies for inflicting a “historic nightmare” on the American infidels. Apart from ensuring its own devastation, such a move would likely drive down Canadian bond yields. Five-year yields often drop during wartime as investors rush for safety in government-guaranteed securities. In the 1990 Gulf War,...

Bond Rates Surge Most in 2 Years + More Rate Nuggets

The latest intel from Canada’s mortgage market… Rates Bounce Bigly Canada’s 5-year bond yield catapulted 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...

Finally. A Bank (RBC) Drops its 5-year Posted Rate Below 5.34%

For the first time since the stress-test rate last increased (in May 2018), a major bank has cut its 5-year posted rate below 5.34%.  RBC confirmed the move Saturday morning, lowering its trend-setting posted 5-year fixed by 15 basis points to 5.19%. Speculation has been running rampant in the industry about the government persuading banks to keep their 5-year posted...

5-year Fixed Rates Hit New Low + More Rate Nuggets

The latest intel from Canada’s mortgage market… Tanker Attack Torpedoes Rates There were sparks this week in the powder keg that is the Middle East. Sea terrorism triggered fears of war and/or oil supply disruption. That led investors to pile back into “safe” Canadian government bonds. As is usual when the market goes into “risk-off” mode, bond prices rose and yields sank (the two...

Rate Nuggets: Yields Collapse, BMO Fined, Trump on Tilt

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 madness for 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 Latest on Ottawa’s First-Time Home Buyer Program

The details on the government’s much-hyped First-Time Home Buyer Incentive (FTHBI) continue to trickle out. The latest clues on its operation come from Evan Solomon’s interview with CMHC CEO Evan Siddall. In that interview, Siddall comments on some lingering FTHBI question marks, namely: The Maximum Home Price The maximum home price under the First-Time Home Buyer Incentive ranges from $505,000...

Rate Nuggets: TD and HSBC Cut Big

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...