Mortgage Rate News

First-Time Home Buyer Incentive Fail

Summary: The CMHC Shared Equity Mortgage comes up short, based on the info the government has graced us with thus far. Some of these projections may change, however, as the government releases more information on the programs. OK, someone please tell us our numbers¹ are wrong, because from where we sit the First-Time Home Buyer Incentive (FTHBI) just announced by...

The Government Cooks Up a Convoluted Mortgage Affordability Scheme

After all the build-up, Canada’s federal budget is finally here. There was no easing to maximum mortgage amortizations or the mortgage stress test, as some had expected. What the government did was throw Canadian mortgage shoppers two bones, with lots of strings attached. Here’s a detailed look at two of the ways the Liberal government proposes to “ease” housing affordability....

Rates Slip Further

Canadian interest rates are still sliding. On Monday, Canada’s 5-year bond yield—which drives fixed mortgage rates—closed in the 1.50% range, something it hasn’t done since November 2017. Dozens of lenders have trimmed fixed rates in recent days as yields keep tumbling. And big banks are not excepted. With skidding home sales, weakening property values and mortgage growth near multi-decade lows, the...

Reverse Mortgage Challenger Slashes Rates

Equitable Bank has slashed its reverse mortgage rates. That’s welcome news for seniors needing to tap home equity, particularly those who can’t qualify for regular financing or don’t want the payments. The company—which has remained in HomeEquity Bank’s shadow—is now working noticeably harder to separate itself from its better-known rival. And its rate cuts this week do just that, assuming...

Banks Entice Borrowers with Cash

Some big banks want to buy your mortgage business, literally, with cash. HSBC, CIBC and BMO are all “giving away” money. Here’s a quick run-down of their offers: HSBC Cash offer: $1,000 for $200,000 to $499,999.99 mortgages $2,000 for $500,000+ mortgages Available on all 5-year closed terms CIBC Cash offer: $1,000 for $100,000 to $299,999.99 mortgages $1,200 for $300,000 to...

Rate Warfare: Meridian’s New 1.98% Fixed

Meridian Credit Union likes to shake things up every spring. For a few years now, it’s been releasing eye-popping mortgage specials during peak homebuying season, and this year is no different. The credit union, Ontario’s largest, just launched a 1.98% 2-year fixed that incinerates competing offers. How crazy is this rate? It is no less than 127 basis points below...

Mortgage Rates Heading South Again

There’s an increasingly ominous vibe to Canada’s economic outlook, and that’s got the market taking rates down another notch. Canada’s 5-year bond yield is seven basis points lower today—to 1.63% as we write this. That’s the lowest it’s been since December 2017. All told, the 5-year yield has now sank 83 basis points since the November high. With the Bank of Canada...

Bank of Canada Rate Decision: Nearing the End

No one thought the Bank of Canada would move rates today. What observers were looking for was a hint that we may be closer to the end of rate hikes than Governor Poloz has been letting on. Here’s what we heard from the BoC on that point, among other things: Rate Decision: Canada’s key interest rate remains at 1.75% Prime...

Why Aren’t Rate Sites Showing You the Lowest Rates?

The number of Canadians who blindly trust mortgage rate comparison websites is staggering. This year, almost two million households will renew or take out a new mortgage. Of these, CMHC found that over 78% who research mortgages online compare interest rates. The majority of these folks, those who visit a rate comparison website, are simply not being shown the market’s best...

5-year Fixed Rates Back Under 3%

Canada’s spring mortgage market is officially underway. HSBC kicked it off today with a head-turning 2.99% 5-year fixed rate. It’s the first time since September 24, 2018, that Canadians have seen the best 5-year fixed rate start with a “2.” Much has changed in those five short months: Market expectations have gone from 100+ basis points of rate hikes in the next few...