Categories for Mortgage Rate Trends

For now, at least, cost pressures are easing slightly for Canadian mortgage lenders.

We're seeing and hearing from multiple customers and mortgage brokers that their mortgage approvals are being overturned by lenders due to coronavirus layoffs.

5:35 p.m. Update National Bank Hikes: Falling bond yields and government moves to bolster mortgage liquidity didn’t keep the country’s sixth-largest bank from lifting mortgage rates. National boosted two fixed specials today: 4-year: 2.89% to 3.29%; 5-year: 2.94% to 3.34%. Systems Hack: As if COVID-19 wasn’t enough, it turns out that the broker industry’s primary application submission platform, Filogix Expert,...

6:58 p.m. Update CMHC on Payment Deferrals: “CMHC has provided increased flexibility to defer mortgage payments on its insured homeowner mortgage loans, which means lenders are now able to defer payments on a borrower’s CMHC-insured mortgage up to six months without CMHC’s approval. Borrowers should speak to their lenders directly by going through their default management department to confirm if...

Some quick hits on the mortgage/rate market (we’ll update these throughout the day): 4:14 p.m. Update Yields Soar: Canada’s 5-year bond yield launched 13 bps today as investors sold everything that wasn’t nailed down, including stocks and bonds, and rushed into cash. Rocketing bond yields are bullish for fixed mortgage rates and we’re seeing more lenders, including banks, react by...

Some quick hits on the mortgage/rate market (we’ll update these throughout the day): 5:14 p.m. Update Behold Sub-2% Variables:Existing variable-rate borrowers with prime – 1.00% are now enjoying 1.95% mortgage rates. Some homeowners have prime – 1.30% or lower. That’s an incredible 1.65%. New borrowers can still get prime – 1.00% or better but, as noted below, they have to...

Prior to the last few days, consumers had expected falling Bank of Canada rates and lower bond yields to translate into cheaper mortgage rates. And they have, big-time. But these two benchmarks aren’t the only things that determine mortgage pricing. Borrowers were reminded this weekend that liquidity and credit risk are also in the equation. Ten days ago we noted...

Canada could see government interest rates below zero for the first time in history. That’s not a prediction, but it’s a real possibility. The probability of recession has surged from the coronavirus pandemic and oil market collapse. The Bank of Canada has just 125 basis points of rate-cutting left before it hits zero. That is insufficient ammunition to fight the...

It feels like it’s starting. Like the coronavirus impact is starting to have a negative effect on mortgage pricing. If you need a mortgage in the next 90-120 days and are leaning towards a variable rate, it may be prudent to apply soon. The concern: we’re now starting to see some lenders cut back on their variable-rate discounts from prime...

Five quick bulletins from the mortgage market: 1. Canada’s 5-year swap, which guides fixed mortgage rates, is on track for one of its biggest down days in history. Driving this carnage is the biggest oil rout since the 1991 Gulf War. JP Morgan says, “The oil and gas sector represents about 6% of [Canada’s] GDP but we expect the hit...