Mortgage Rate News

You Can Still Count on Rock-Bottom Rates, Says BoC

—The Mortgage Report: Nov. 27— If you’re out there mortgage shopping, BoC chief Tiff Macklem had a message for you Thursday: “We want to be very clear, Canadians can be confident that borrowing costs are going to remain very low for a long time.” It’s a mantra he’s repeated for months. Among the reasons: “…The economy still has more than...

Tangerine’s 10-year Fixed Rate Smashes Record

—The Mortgage Report: Nov. 23— Bond yields stopped falling three months ago but that hasn’t stopped Tangerine from launching one sweet 10-year special. If you: think the economy will turn around in 2021, and think rates are near a medium-term (or longer) bottom, and want maximum protection from future rate increase, thenTangerine’s new 10-year fixed rate might just check your...

Getting Past the Next Three Months

The bad news: COVID cases have exploded, hospitalization numbers are surging and most people may be slow to get vaccinated. The good news: the fatality rate is dropping and vaccine distribution could start next month. The question is, which news will the bond market pay more attention to? Our guess is the latter. Black swans aside, markets often discount major...

How Far We’ve Come

—The Mortgage Report: Nov. 17— Remember that rate: 8 3/4%? Your average first-time buyer wouldn’t, as he/she would’ve been just seven years old at the time (1991). 8.75% was a tremendous 1-year fixed rate back then. But man, did it take a bite out of people’s budgets. Consider that on a standard $100,000 mortgage, you would’ve paid: $811 a month,...

More Zigs & Zags to Come

—The Mortgage Report: Weekend Edition— Canada’s rate outlook got a boost this week from two influential developments: Promising vaccine news (20 potential vaccines are in late-stage trials, including Pfizer’s drug that’s reportedly over 90% effective), and The widespread acceptance of Joe Biden’s presidential victory. This much-needed dose of good news led investors to sell government bonds, which is typical when...

Rate Risk Just Went Up

Bond yields shot up like a cannonball after news broke this morning of Pfizer’s positive vaccine trials. Canada’s 5-year swap rate, one of the best leading indicators of fixed mortgage rates, sailed to a 5-month high. Now, everyone’s trying to figure out how long it’ll take before this translates into above-target inflation, which would be the Bank of Canada’s trigger...

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....

OSFI on Reviewing the Stress Test Rate

If you’re hoping the mortgage stress test gets easier—so you can qualify for bank financing—you’ve got more waiting to do. Canada’s banking regulator, OSFI, says it’s not ready to adjust the stress test just yet, despite proposing last February to ease it. OSFI spokesperson Michael Toope tells us: “On March 13, 2020, OSFI suspended all of its consultations and policy...

Too Close to Call

The Latest on Canadian Mortgage Rates: Election 2020 —10:33 p.m. Update— Biden is just 6 electoral votes from victory, reports AP. It’s never over till it’s over, but thus far election 2020 doesn’t look like a threat to mortgage rates. Yields have trended lower, suggesting that borrowing costs in Canada won’t be adversely impacted like they were after Trump’s 2016...

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...