Mortgage Rate News

Yields Sink. Mortgage Rates Might Follow

The “Trump Bump” it was called — that 50+ basis point run-up in rates following President Donald Trump’s surprise presidential win. Well, the Trump Bump has become the Trump Dump. Bond yields dove to a 6-month low yesterday on fresh reports of White House scandals and a stock selloff. Here’s the chart: This dip in yields was triggered by investor concerns about the...

Fixed vs. Variable. The Gap Narrows

Fixed and variable rates began the year on totally different trajectories. Fixed rates were on the way up. Variable rates were on the way down. But in the last eight weeks, the gap between the two has conspicuously narrowed, with fixed rates falling up to 20 bps. That’s driven down the “insurance premium” borrowers pay for the security of a fixed rate. Canada’s lowest 5-year...

Home Capital: Top 10 Predictions

It’s easy to stoke fear of a crisis when there’s already a purported crisis. Towering housing valuations in Canada’s internationally renowned cities have prompted bubble-talk for years. Housing bears are constantly speculating on what it’s going to take to “pop” it. Well, now we have a pin, some say:  Home Capital’s scandalous potential failure. But we don’t see it that way. Despite...

Variable Rates Beat Fixed Rates…A Lot

The foundation for all Canadian interest rates is the overnight target rate. It’s been stuck at or below 1% for an incredible eight years. That’s never happened before. We’re living in bizarro economic times and those with big mortgages are hoping they’ll last. But inflation, the key interest rate driver, is not down for the count. As sure as the Maple Leafs will disappoint...

Soaring Prices. Mortgage Fallout: RateSpy TV

This week on RateSpy TV: Sky High Prices & Your Mortgage: Big-city home prices are going orbital. That’s making it harder to score a mortgage approval. The Spy tells you how hard. Check Your Broker: A tiny fraction of mortgage brokers are not on the up and up. Regulators have now made it easier to find them. But here’s the rub, the government’s done nothing...

Mortgage Complaint? Who You Gonna Call?

We’ve all heard this line before: “A mortgage is probably the largest financial commitment you’ll make in your lifetime.” So what happens when the process goes sour? Who’s got your back? People run into mortgage service problems all the time. The three most common grievances relate to penalties, portability caveats and pre-approvals. (Source: OBSI’s 2016 annual report) Fortunately, several organizations across the country are equipped...

The Dark Secret About Rate Sites

A reader asked this on one of our message boards this week: “I don’t understand why every site doesn’t have a refinance selector. How are you supposed to find a rate for a refinance otherwise?” Heck of a good question. After all, there are only three reasons you get a mortgage: to purchase a property (20% of borrowers get a mortgage for...

Rate Discounts Shrink: RateSpy TV

This week on RateSpy TV: Conventional Rate Discounts Squeezed: If you’ve got 20% to 34.99% equity, the lowest available rates have risen. The Spy tells you why. NEW! Refinance Finder: The best mortgage rates on refinances are not the same as the best rates on purchases and switches. Most rate sites don’t differentiate between them. RateSpy.com’s new refinance filter finds you rates that...

Another Nail in Competition’s Coffin

As previously announced, CMHC is jacking up default insurance premiums on Canadian borrowers. Effective today, anyone purchasing a home with less than 20% down will fork over up to 1.00%-point more in fees. If you’re down payment is: Less than 10%: You’ll pay 0.40% more, or 4.00% Between 14.99 and 10%: You’ll pay 0.70% more, or 3.10% Between 19.99 and 15%: You’ll pay...

The Fed Pulls the Trigger. What Now for Mortgage Rates?

Opps!…They…Did…It…Again. For the third time in 11 years, the planet’s monetary policy superpower has elevated America’s key lending rate by 1/4 point. Now it’s a question of how Canadian rates will react. In and of itself, one highly anticipated U.S. rate hike is immaterial. It’s the longer-term trend that’s worth talking about. On that note, the Fed projects its policy rate...