Mortgage Rate News

Variable Rates Smash Prime – 1% Barrier

—The Mortgage Report: Oct. 29— 1.29% is now the variable rate to beat, in Ontario at least. This new rate is: effectively equivalent to prime – 1.16%, a discount we haven’t seen since the COVID implosion last March 11 bps below the lowest 5-year fixed in the province (that being 1.40% for default-insured mortgages). Unfortunately, 1.29% is only available on...

BoC Decision: More Impact on 5-year Rates Than Prime Rate

Quick Rundown Today’s Announcement:No change to rates Overnight rate:0.25% Prime Rate:2.45% (also no change; seePrime Rate) Market Rate Forecast:No BoC hikes until at least 2023 BoC’s Headline Quote: “The Governing Council will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the 2% inflation target is sustainably achieved. In our current projection,...

RateSupermarket is Now RATESDOTCA

—The Mortgage Report: Oct. 26— Canada’s original mortgage rate comparison site, RateSupermarket.ca, is now RATESDOTCA. RATESDOTCA and its affiliates (including this site) areCanada’slargest family of comparison sites serving over 8 million customers each year. Here’s a look at the original website that propelled Canada’s rate comparison movement, circa 2008. ‎ Pessimistic Mortgagors 1 in 8 mortgage borrowers say it is...

Rumoured: HSBC Canada to Re-enter Mortgage Broker Market

—The Mortgage Report: Oct. 23— It seems HSBC Canada may start selling through mortgage brokers once again. The bank had a “Head of Mortgage Broker Channel” job posting on its website until this morning. We then confirmed with a separate reliable source that the news appears to be true. HSBC was not able to comment by press time. The move...

Record-Low Fixed Rates May Depend on the BoC

—The Mortgage Report: Oct. 21— Canada’s budget deficit will end 2020 “near 20% of GDP,” according to the IMF. “That represents the fourth-highest projected deficit in the world, after Libya, Aruba and the Maldives,” says Bloomberg News. With that degree of fiscal hemorrhaging in Ottawa, bond yields (and hence fixed mortgage rates) would jump sooner were it not for Bank...

Trouble in Condoland

—The Mortgage Report: Weekend Edition— Some commentators proclaim that home “prices can only go up,” but HouseSigma’s Market Temperature gauge shows it’s not peaches and cream everywhere. Market Temperature gauges the number of condos sold versus the number of active condo listings (inventory). Month-to-date, it’s plunged to the lowest level in HouseSigma’s records. If we close October at these levels...

A New Interest-Only Mortgage from Meridian

—The Mortgage Report: Oct. 15— Canada has had interest-only home financing for decades, the most popular type being the HELOC. But it’s hard to find a mainstream lender selling an interest-only mortgage. That’s partly what makes Meridian Credit Union’s new Hybrid mortgage interesting. The Meridian Hybrid is a traditional mortgage and interest-only (I/O) loan in one. It lets someone with...

“This Time is for Real,” Says BofA

—The Mortgage Report: Oct. 13— If you like definitive-sounding rate calls, here’s one: “The 2020 recession AND the 40-year bond rally are over,” declares Bank of America. Positive economic data surprises, declining uncertainty post-U.S. election and “massive monetary and fiscal policy support” will “set the stage” for higher bond yields, the bank stated in a report on Tuesday. If true,...

The Chance of Negative Rates Remains

“We are not actively discussing negative interest rates at this point, but it’s in our toolkit and never say never.” Bank of Canada Governor, Tiff Macklem That comment from Canada’s monetary kahuna, Tiff Macklem, put a glimmer of hope in the eyes of variable-rate mortgagors this week. By leaving the door open to sub-zero rates, even if just a crack,...

Refi Ahead of Condo Trouble?

—The Mortgage Report: Oct. 7— Toronto condo listings have exploded 215% to a record high, reports Bloomberg. And they’re projected to be even higher in October, according to HouseSigma. Driving that surprising number: skittish investors (many with negative cash flow given surging rental listings and a 14% y/y drop in rents) “elevator phobia” people coming off mortgage deferrals relatively higher...