Mortgage Rate News

New 1-Year Fixed Rate: Lowest Since 2016

—The Mortgage Report: June 22— Just the Latest Head-Turning Rate: What would a week be without a new low in mortgage rates? The latest term to wear the low-rate crown is the 1-year fixed, thanks to a new promo available through deep-discount brokers. Priced at 1.69%, it’s the cheapest effective rate on a 12-month mortgage since 2016. It’s also officially...

10-year Fixed Rates Sink to Record Lows

—The Mortgage Report: June 19 — Long-term Money on Sale: If you’re willing to commit to a decade-long term, and you live in Ontario, you can now do it for less than at any time in history. 10-year fixed rates are now as low as 2.79% (an effective rate including cash back) for well-qualified borrowers in Ontario. Outside of Ontario,...

Divorcing 1.99%

— The Mortgage Report : June 18 — For Better or Worse: When you take a bank’s 5-year fixed you’re married to it for half a decade. That is, unless you file for divorce, so to speak (i.e., discharge or transfer the mortgage to a new lender early). But as unwedded people find out, splitting up has a financial price....

How Low Can Inflation Go?

— The Mortgage Report : June 17 — Prices Slide: The Bank of Canada wants average core inflation at/near 2%, but it’s currently 1.67% and diving. That’s noteworthy for borrowers given inflation expectations are a primary determinant of mortgage rates. Inflation’s descent may slow thanks to rebounding oil prices, but it’ll continue dropping economists say—potentially to lows we haven’t seen...

“We’re in a Deep Hole:” BoC Governor

— The Mortgage Report : June 16 — Tiff on the Hot Seat: In his first news public hearing since being minted as BoC Governor, Tiff Macklem got pelted with questions from MPs. Among his notable statements: “The biggest risk to Canadians not being able to repay their mortgage is not having a job.” “…We’re in a deep hole and...

Fear of a Second Wave Pushes Down Rates

The Mortgage Report – June 12 Double-dip: As is often the case, bad news for the economy is good news for interest costs. Investor worries over a potential second wave of COVID-related shutdowns helped push 5-year Canada Mortgage Bond (CMB) yields to an all-time low on Monday. Recent Bank of Canada buying might have also helped. The reason this matters...

Mortgage Deferral Warnings

The Mortgage Report – June 12 Deferrals Appearing on Credit Reports: Credit bureaus are alerting lenders when you’ve requested a payment deferral. If you’ve deferred your mortgage, Equifax says you should see one or both of these statements in the comments section of your credit report: Deferred Payment Affected by Natural or Declared Disaster Mortgage deferrals aren’t supposed to hurt...

Stock Drubbing Reinforces Low-rate Outlook

Mortgage Report – June 11 A Thursday Thumping: Fixed mortgage rates follow bond yields most of the time. Yet, despite stocks surging since March on recovery hopes, bonds have been arguably more realistic (less optimistic). Well, today stocks converged meaningfully with bonds…finally. The talking heads on TV say the Fed’s outlook and accelerating COVID cases scared the market and we’ve...

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...

The Mortgage Report – June 8

A Recovery for the Ages: Against all odds, and despite the biggest unemployment surge in a 3-month span ever, stocks have erased 2020 losses. ICYMI: Private default insurer Genworth Canada saw no need to follow CMHC and tighten its mortgage rules. Canada Guaranty, which has the lowest loss ratio in the mortgage insurance industry, made the same determination, saying, “Given...