Categories for Mortgage Briefs

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...

Rate Nuggets: Even Mortgage Rates are Inverting

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, the best 5-year fixed rate is now below the best variable rate. There’s still tremendous value in insured variable rates—now effectively as low as 2.54% in some provinces. Markets are...

Perpetuating Online Mortgage Myths

Hopefully people don’t believe everything they read, especially when they read stories like this: “Instant mortgages are coming soon – what could go wrong?“ We’ve been meaning to comment on this piece of imaginative writing for a few months now, but real news got in the way. The article, originally published in October—from a respected journalist no less—is heavy on...

Why Comparing Rates is Now More Rewarding

Comparing mortgage rates is more worthwhile today than it was two years ago, for multiple reasons. For one thing, Canada’s average mortgage balance is now up to $263,657, according to TransUnion. This number has been rising for years, and it’s risen another 4.23% in the 12 months ending Sept. 30, 2018 (the latest data available). The bigger your mortgage, the mortgage...

New Capital Requirements: The Rate Impact

It’s sort of counterintuitive that making banks safer often costs you more as a borrower, but that’s what may happen in this case. Canada’s banking regulator (OSFI) has raised the minimum capital that banks must maintain…again. And there’s a good chance banks could take it out on mortgage borrowers, eventually. Here’s What Happened Back in June, OSFI created the “Domestic...