Prime Rate Jumps 1/4 Point

RBC waited exactly three hours and 11 minutes to take advantage of the Bank of Canada’s 1/4 point rate hike today. RBC, which is typically Canada’s mortgage rate leader, boosted its prime rate by the same amount, to 3.45%. The other...

Mortgage Rules 2018: Credit Unions & The Stress Test

We’re one week into 2018, OSFI’s new mortgage stress test is live and the earth is still spinning on its axis. But that axis is now tilted…in credit unions’ favour. If you’re a mortgage shopper who’s been turned down by...

BMO’s 10-Year Fixed: Not Too Shabby

If you look back over the last 40-odd years, there’s never been a time where a 10-year fixed rate has saved you more than a 5-year fixed. A 10-year term’s rate premium over a 5-year fixed, let alone over a...

B-20 Backfire

Big-city home values were out of control. The real estate market needed de-risking. But the solution policy-makers gave us (the B-20 mortgage guideline) was imperfect, very imperfect. What’s About to Happen Effective January 1, 2018, the banking regulator (OSFI) will...

BoC Stands Pat. Prepare for B-20

Not much to see at today’s Bank of Canada meeting. It was another yawner as prime rate held at 3.20%. Among the few takeaways: The Bank stated: “While higher interest rates will likely be required over time, Governing Council will...

Low Rate or Low Borrowing Cost?

Would you rather have the lowest mortgage rate or the lowest borrowing cost? If you picked the latter, good for you. You’re mortgage savvy, and you’re in the minority. Check out this chart from a recent Manulife survey. Its findings show...

Don’t Buy Mortgage Insurance for Nothing

We don’t buy the numbers in this story. Its premise is that some people are better off paying for mortgage default insurance—even if they don’t technically need it—just to get a better rate. The reason: insured rates are lower than...

Over Half of Us to Get Online Mortgages: Meridian CU

It’s not a question of whether mortgages will someday be arranged completely online. The question is, how long will it take? When we do finally get there, you’ll still be able to speak with a human advisor for mortgage help,...

OSFI Rules to Cost Mortgage Renewers

Renewing a mortgage could soon get a lot more costly for 700,000+ Canadian families. And they’ll have OSFI to thank. The banking regulator’s new stress test will drive up debt ratio calculations for most conventional borrowers by 6 to 7...

A Case Where Banks Lose & Credit Unions Win

Canada’s new “B-20” mortgage stress test will be a tectonic shift for the roughly 1 in 6 borrowers it affects, starting January 1. It’s going to force higher-indebted creditworthy borrowers to either: reduce their loan amount, seek help qualifying (e.g.,...