Mortgage Rate News

Coronavirus Mortgage Update – March 18

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...

Coronavirus Mortgage Update – March 17

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...

The Latest Mortgage Updates

Some quick hits on the mortgage/rate market (we’ll update these throughout the day): 7:29 p.m. Update Prepare for “Prime Rate Variables”: Expect one or more major banks to hike “discounted” variable mortgage rates to prime (2.95%) on Tuesday. That’s right, there will be no more variable discount from those lenders (i.e., prime – 0%). This will essentially negate the Bank of...

Fed Shocks Market With Sunday Emergency Rate Cut

The world’s most powerful central bank has slashed its main interest rate by one whole percentage point. This is the U.S. Federal Reserve’s largest emergency cut in its 100+ year history. The move is a desperate bid to keep money markets functioning and stimulate borrowing and economic activity. Malls, restaurants, bars, factories, sports seasons, schools, international borders and even Vegas casinos are...

Distress in Money Markets Greatest Since 2009

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...

No Word on Prime Rate + Other Major Mortgage News

Our Big 6 Banks chose not to announce their prime rates following Friday’s surprise Bank of Canada rate drop. Instead, people in a floating rate mortgage or HELOC must wait to learn how the BoC’s move will impact their budgets. Banks could take a few days or more than a week. This isn’t unheard of. Back in 2015, when the...

Bank of Canada Makes Emergency Rate Cut

The Bank of Canada has made an unscheduled emergency rate cut for the first time since the 2009 financial crisis. Today, it dropped its overnight rate half a point to 0.75%, its second 50-bps cut in nine days. In a statement, the BoC said: “It is clear that the spread of the coronavirus is having serious consequences for Canadian families,...

Negative Interest Rates. An Increasing Probability for Canada

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...

Some Lenders Tightening Variable Discounts

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...

Look Out Below. The Latest from the Rate Collapse

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...