Categories for Mortgage Briefs

People Get Squeezed on Mortgage Renewals

—The Mortgage Report: Weekend Edition— Renewal Tax: Borrowers get worse deals on mortgage renewals than on brand new mortgages. And it’s been that way for decades. Interest rates on renewals have historically been about nine basis-points (0.09%) higher than rates on new mortgages. That’s based on a survey of five-year uninsured mortgages from 19 of the largest federally regulated lenders...

Fear of a Second Wave Pushes Down Rates

The Mortgage Report – June 12 Double-dip: As is often the case, bad news for the economy is good news for interest costs. Investor worries over a potential second wave of COVID-related shutdowns helped push 5-year Canada Mortgage Bond (CMB) yields to an all-time low on Monday. Recent Bank of Canada buying might have also helped. The reason this matters...

Daily Mortgage Report – April 29

TD Canada Trust rate cuts: Special fixed rates drop from: 3yr: 2.99% to 2.89% 5yr (high ratio): 2.99% to 2.79% Posted rates drop from: 1yr fixed: 3.59% to 3.44% 2yr fixed: 3.74% to 3.54% 5yr variable: 2.65% to 2.35% (P – 0.25%) Every time a bank cuts 1- and 2-year posted rates, it raises the chances of customers paying bigger...

Daily Mortgage Report – April 14

Falling Back to Earth: Fixed mortgage rates are at multi-week lows. In the last week, multiple big lenders have cut 5 to 15+ bps. The key reasons: rates are descending in the fixed-income market (where lenders fund most of their fixed-rate mortgages), and credit spreads are narrowing (meaning lenders are paying smaller risk and liquidity premiums to investors to obtain...

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...