Categories for Mortgage Rate Tips

Canada’s Mortgage Rate Outlook, Post-Biden Victory

—The Mortgage Report: Weekend Edition— Joe Biden has won the U.S. presidency, reports AP. Now rate-watchers will wait for the U.S. bond market to open Sunday at 6 p.m. ET to see the short-term rate impact. Biden’s apparent win isn’t the main thing bond traders are concerned with. What matters more is whether the Republicans maintain control of the U.S....

Atrocious Renewal Offers

—The Mortgage Report: Nov. 2— Check out these hideous renewal offers from a Big 6 bank. Yes, that’s right, banks are still quoting loyal customers non-discounted posted rates—the rates virtually nobody is supposed to pay. This particular bank must really hate its customers. Fortunately, the borrower, who was extremely well-qualified, came to us for a second opinion. We told him...

Don’t Time Mortgage Rates. How to Time Mortgage Rates

Lest you think too many mimosas at Sunday brunch impacted our headline choices today, fear not. As long-time readers can attest, we don’t hype interest rate timing around here. Guessing rate direction beyond the short term can be like guessing solar flare intensity. It ain’t easy. Professional economists with big fat salaries botch rate predictions for a living. Yet, many...

Prepayment Envy

—The Mortgage Report: Sept. 28— Ever wonder who’s got the most generous prepayment privileges in Canada on a closed mortgage? So did we, so we just looked in our database of 3,000+ rates to find out. It turns out that credit unions rule the roost when it comes to annual lump-sum prepayment allowances. The leaders: 30% per year: Casera Credit...

Mortgage Rate Differentials: Unusually Narrow

—The Mortgage Report: Sept. 8— One of the most important factors determining your success with a mortgage is the rate, relative to other rates you could have chosen. Over the long run and other things equal: The higher your rate relative to other rate options, the worse your odds of success. The lower your rate relative to other rate options,...

Could 5-Year Fixed Rates Sink to 1.49%?

—The Mortgage Report: Aug. 25— Yes. The Question is: When? Most readers know that fixed mortgage rates follow bond yields. But it’s bond yields south of the border that are particularly influential for Canadian mortgage rates — given U.S. influence on our economy. To get to 1.49% on discounted 5-year fixed rates, we need a Canadian 5-year bond yield near...

Fixed Wins Enough of the Time

The debate over fixed or variable rates never ends. But there are now two things that are far less debatable: 1) The Bank of Canada is telling us that prime rate has likely hit bottom, and 2) “Safer” 5-year fixed rates are now as low as “riskier” variable rates. (Safer, particularly if you choose a fair penalty lender.) Given the...

Weekend Tip: Debt Swapping With a Readvanceable Mortgage

—The Mortgage Report: Saturday Edition— The Readvanceable Shuffle: Got a fixed rate above 3% in a readvanceable mortgage? Does your lender let you lock in the HELOC portion to a low-cost short-term fixed rate? If so, here’s a tip that might save you some interest. Jargon Buster: A “readvanceable mortgage” is one that has a regular amortizing mortgage linked to...

16 things that impact your mortgage rate

—The Mortgage Report: July 22— Rate Influencers: When people ask, “What’s the best rate?” most just want you to reel off a number with minimal complexity. Many don’t realize all the elements that determine mortgage pricing. That’s why it’s almost impossible to spit out an accurate quote on the fly. If you want a standard 5-year fixed, for example, factors...

When to Buy Mortgage Insurance—Even When It’s Not Required

—The Mortgage Report: July 21— A Seldom-used Strategy: Usually, it doesn’t make sense to buy default insurance on your mortgage if you have a big down payment. But there are exceptions, like when you have 35% equity and the difference between insured and insurable mortgage rates is 15 basis points or more. In those infrequent cases, you end up saving...