Categories for Mortgage Rate Trends

Fed “not even thinking about” rate hikes

The Mortgage Report – June 10 Dot Dot Dot Plot: The U.S. Federal Reserve, which sways Canadian rates more than many realize, was more pessimistic than expected in its rate announcement today. It’s “Dot Plot” (the Fed’s official rate forecast) now projects no rate hikes for 2020, 2021 and likely 2022. It’s unlikely Canada deviates much from the Fed’s path...

HSBC’s Record-Low 1.99% 5-year Fixed

The Mortgage Report – June 5 Big Drops from HSBC: The online mortgage juggernaut keeps shaking competitors’ trees. This time with Canada’s lowest bank-advertised 5-year fixed rate ever, according to our records. It’s also the first bank to crack the 2% barrier on a 5-fixed, albeit it’s for default-insured mortgages only. HSBC’s move not only reflects historically low funding costs,...

Variable-Rate Discounts on the Path to Recovery

The Mortgage Report – June 2 HSBC Cuts: HSBC dropped two key variable rates: 5yr (regular): 2.25% to 2.15% (Prime – .30) 5yr (high ratio): 1.95% to 1.85% (Prime – .60) At the height of the COVID crisis, banks hiked their variable rates to prime – 0%. At the time, we wrote that variable-rate discounts will improve significantly once again....

One of Three Things Must Occur for Record Low Mortgage Rates

The Mortgage Report – May 31 And One of Them’s Bad: If you’re rooting for lower mortgage rates, one of the following must happen: Bond yields must drop to record lows Bond yields steer fixed mortgage rates and are largely a reflection of Canada’s economic (inflation) outlook Rooting for economic pain—so mortgage rates fall—isn’t exactly a patriotic sentiment, so we’d...

Reverse Mortgage Rates Break Record

The Mortgage Report – May 28 Now in the 3s: For the first time ever, a Canadian reverse mortgage provider has a 5-year fixed term under 4%. Equitable Bank announced the offer Thursday, which applies to its 5-year “Lump-sum” reverse mortgage. Equitable trimmed all of its other reverse mortgage rates by 15 bps as well. That’s a big win for...

Compare & Save: BoC

The Mortgage Report – May 27 Shop Rates, Says Bank of Canada: “The price of a mortgage can vary a lot among lenders…You’ll most likely find a lower interest rate if you do your homework and are willing to negotiate.”—Bank of Canada The BoC Does Move Fixed Rates: It’s a misconception that the Bank of Canada only influences variable mortgage...

One Way to Get a Mortgage Without *the* Stress Test

The Mortgage Report – May 26 Stress Test Exception: Here’s a tip for renewers. If: A) you want to switch to a new lender at renewal, and B) your mortgage closed before October 16, 2016, and C) you haven’t refinanced since… …then some lenders let you qualify at their best 5-year fixed rates instead of at the government’s “stress test” rate (which is...

10-Year Fixed Mortgage Rates Fall to Record Low

The Mortgage Report – May 25 Decade Discounts: With rates near perma-lows, according to some, people aren’t exactly lining up to lock in for 10 years. That’s especially true with penalties being so large on 10-year fixed terms, that is, until a mortgage passes its five-year anniversary—at which point the Interest Act limits penalties to three months’ interest. Nevertheless, effective...

One-year Rates as Low as 1.99% IF Your Mortgage is Insured

The Mortgage Report – Weekend Edition More Sub-2% Rates: For default-insured borrowers, there’s now up to three mortgage terms in the magic 1% range, depending on your province. They include the one-year fixed, three-year fixed and variable. In coming weeks, more borrowers could strategically choose shorter fixed terms to: (a) wait for better variable-rate discounts in 2021, and/or (b) get...

Fixed Rates Break the 2% Barrier Again

The Mortgage Report – May 20 “1″-handle Rates Return: Fixed rates have once again dipped below the psychological 2% level, albeit only three-year fixed rates. It’s a threshold that, when broken, often creates incremental demand for mortgages. Normally that demand comes from refinances and purchases, but with home sales down 57% nationwide, purchases have largely dried up. Credit tightening, a...