Categories for Mortgage Briefs

RateSupermarket is Now RATESDOTCA

—The Mortgage Report: Oct. 26— Canada’s original mortgage rate comparison site, RateSupermarket.ca, is now RATESDOTCA. RATESDOTCA and its affiliates (including this site) areCanada’slargest family of comparison sites serving over 8 million customers each year. Here’s a look at the original website that propelled Canada’s rate comparison movement, circa 2008. ‎ Pessimistic Mortgagors 1 in 8 mortgage borrowers say it is...

Trouble in Condoland

—The Mortgage Report: Weekend Edition— Some commentators proclaim that home “prices can only go up,” but HouseSigma’s Market Temperature gauge shows it’s not peaches and cream everywhere. Market Temperature gauges the number of condos sold versus the number of active condo listings (inventory). Month-to-date, it’s plunged to the lowest level in HouseSigma’s records. If we close October at these levels...

Get Yer Affordable Housing Here!

—The Mortgage Report: Aug. 5— Is This a Joke?: “The CMHC defines housing as affordable when ‘it costs less than 30% of a household’s before-tax income,’ which includes rent or mortgage (principal and interest) payments, property taxes and other home bills,” reports the Financial Post. The punchline is, you have to move to a remote fishing village in Newfoundland to...

Canada’s “Neutral Rate” Keeps Sliding

—The Mortgage Report: July 16— Falling Equilibrium: The Bank of Canada now estimates that Canada’s “neutral rate” is 25 bps lower than it was last year. The neutral rate is the policy interest rate that keeps inflation at its 2% target without stimulating or slowing the economy over the medium to long term. The Bank now pegs neutral at 2.50%,...

Another New Low in Reverse Mortgage Rates

—The Mortgage Report: July 14— Reverse Record: Once the scorn of financial planners across the land, reverse mortgages are increasingly becoming cornerstones of retirement planning. The main reason: rates. Equitable Bank just keeps driving reverse mortgage rates lower. Today it launched a barrage of new deals, including a 3.49% one-year fixed. That’s the lowest reverse mortgage rate in Canadian history...

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...

Daily Mortgage Update – April 6

Optimism Returns: Markets rose across the board Monday, including 5-year rates in Canada’s bond market. Normally that would put upward pressure on funding costs, and hence fixed mortgage rates. But we’re simultaneously seeing risk/liquidity premiums (the extra lenders have to pay for mortgage capital) decline. Temporary Income: Some lenders are now considering government COVID-19 assistance as income when re-underwriting already-approved...