Categories for Mortgage Rate Trends

Ultra-low Rates Will Persist: RBC

The 2020s won’t be the decade to lock into a long-term fixed mortgage, not if you believe RBC Economics. It’s projecting just 1.7% annual economic growth for the next 10 years, give or take. That’s roughly a full point less than before the Great Recession. At 1.7% GDP, there’s generally very little reason for rate hikes. Quite the opposite, RBC...

Big Banks Remain Under Pressure on Standalone HELOC Rates

motusbank and Tangerine have been putting the screws to HELOC competitors for months now. Their respective 3.75% and 3.85% HELOC rates have undercut almost every lender in Canada since last spring. That’s far longer than other lenders ever expected (or hoped). The more that consumers learn about these rates, the more it becomes an issue for the major banks. Reason being, HELOCs are usually...

Year in Review: Top Mortgage Stories of 2019

Compared to the chilling regulatory news of 2018 (i.e., the launch of OSFI’s mortgage stress test), this was a year of turnarounds in the mortgage market. For one thing, the year ended with palpable optimism in the housing sector. It was a degree of bullish sentiment that many didn’t think we’d see when 2019 began. Below we recap that and...

How Mortgage Payments Could Rise in 2020

6.2%. That’s how much Canada’s average home price could rise in 2020, according to CREA. The national average home price is already up 8.4% in the last 12 months. A country-wide average doesn’t tell the whole story, of course. The Prairies and Newfoundland are seeing much softer markets. And, economists’ 2020 consensus price growth estimate is just 3%. But given we’re...

Rates Pop, RBC Hikes and the Fed’s “Dead”

Rates are breaking out. Canada’s widely watched 5-year bond yield just hit a seven-month high. That’s typically bullish for fixed mortgage rates. Trendsetter RBC wasted no time this morning. It ran a press release announcing it was boosting 3-, 4- and 5-year fixed rates by 10, 20 and 20 bps, respectively. RBC doesn’t usually issue press releases when it’s merely...

2-Year Fixed Mortgage Rates. Looking Good

Five-year fixed rates have dominated consumer mindset all year, but that dominance may start waning in 2020. If you believe unemployment has bottomed out in this country, and you believe an inverted yield curve is rate-bearish, and you’re a financially secure borrower, you’re probably going to steer clear of a 5-year fixed. Instead, you might focus on terms that cost...

Scotia’s eHOME Pre-Approval Leads the Big Six

Most big banks now have online mortgage pre-approvals. No news there. But three decades following the invention of the world wide web, big banks still don’t let you get a mortgage: on virtually any smartphone, tablet or computer without ever speaking to a banker with an instant credit check with automated screening of your application data with an industry-leading, fully...

Checking In on Scotiabank’s eHOME Mortgage

When Scotiabank launched its eHOME Mortgage in March, it promised a faster, easier way to get a big-bank mortgage, with compelling rates to boot. Since then, industry-types have watched and wondered if eHOME would get much traction. It has. “When we built Scotiabank eHOME, we set out to create a unique mortgage experience for our customers, focused on simplicity, security, transparency...

When a 10-Year Mortgage Term Isn’t So Bad

Special to RateSpy, By John Bordignon, Capital Markets Consultant Earlier this year, while calling for innovation in the mortgage industry, Bank of Canada Governor Stephen Poloz discussed the need for mortgages longer than five years. Longer-term mortgages, he explained, would benefit both consumers and the Canadian financial system. Based on volumes to date, Poloz’s comments moved the needle only slightly...

Rates Rebound, But Lenders Being Aggressive

A new 5-year fixed will cost you more today than it did last month, but not as much as normal. Canada’s biggest banks have been boosting their advertised mortgage rates following a 1/4-point pop in their funding costs over the last two weeks. Let’s go to the charts… The following graph shows what’s been happening. It’s a picture of Canada’s...