Mortgage Rate News

New Rate Features – October 2

The Spy’s tech team has been cooking up lots of new features to help you better analyze, track and compare mortgage rates. The latest additions were just launched and you can now: View historical rates! This was one of the Spy’s most requested features. It took an epic effort but you’re now able to view rates from prior days. To use the...

Mortgage Costs Going Up

Effective January 1, 2017, financial regulators will make default insurers (like CMHC) hold more capital when insuring mortgages in highly valued cities. The purpose is to keep government-backed insurers more solvent if home prices fall off a cliff. But financial stability has a cost. Capital is not free so both insurers and lenders will look for ways to offset this higher cost. Potential ramifications for borrowers could include: Higher insurance premiums expect...

Thank You, Mr. Poloz?

“Young folks with mortgages regularly thank me for keeping interest rates low.“ —Bank of Canada Governor, Stephen Poloz In fact, Mr. Poloz’s decisions to keep rates low have practically been made for him, by serially disappointing economic data. Monetary policy has merely reacted to what he terms “a steady decline in the potential growth rate of the economy.” The...

Latest From the Rate Front

The mortgage industry’s most-watched number — Canada’s 5-year government yield — is back above its midpoint for the year. As regular readers know, bond yields drive the fixed mortgage rate bus. The best mortgage rates barely budged this week. Yields have sprung back to life, however, in reaction to: the U.S. Fed’s incessant chirping about approaching rate hikes (chirping punctuated by its continual contradictions on rate...

Another All-time Low

Mortgage competition is an exquisite thing, especially on days like this. Canada’s 5-year government bond yield sprang to a two-month high today. Normally that’s a clue that fixed mortgage rates are on the up escalator. Not this time. Instead, 5-year fixeds defied bonds (and logic) and actually dropped — at least the ones tracked by RateSpy.com. The nation’s leading 5-year fixed...

Prime Rate, Going Nowhere

Another Bank of Canada rate meeting has come and gone with no shift in prime rate. Here’s pretty much the only line in the Bank’s 421-word statement worth repeating: “On balance, risks to the profile for inflation have tilted somewhat to the downside…” Deciphered, this means: The Bank is closer to dropping rates than raising them. And it could take multiple...

Negotiate Your Mortgage Rate: A Few Tips

It doesn’t matter what you’re buying. If there’s a salesperson involved, the price is almost always negotiable. That goes for mortgages too, so here’s some intel on how to win a better deal on your next one. Step #1 First off, understand what you have to gain. Spending an hour of your time to save 10 basis points (0.10%) off your rate is worth...

5-year Fixed Rates Break 2.00% Barrier

“Mortgage rates have bottomed.” That’s what some economists were proclaiming last year. The market then did what the market likes to do, confound and humble those who try to predict it. Earlier today, intelliMortgage (a brokerage related to this website) became the first mortgage provider in Canada, according to RateSpy.com records, with a five-year fixed rate under 2.00%. It’s a...

Rate-enomics: Fiscal Deliverance

Economic events that could move your mortgage rate, in no particular order… Frisky Fiscal Stimulators “…The bond market would react very badly to a sudden move to fiscal easing.”—J.P. Morgan Monetary policy isn’t working so well. Interest rates around the developed world are either negative or near-zero and still growth is stuck in a rut. That’s got some experts looking to fiscal...

Brokers Enforcing Cancellation Fees

If you’re considering using a mortgage broker for an approval and backing out at the last minute, check your contract first. It could cost you otherwise. One recent borrower learned this the expensive way after ditching his mortgage broker and going with another. He did so after the first broker, lender and lawyer expended considerable effort to secure his approval and close the mortgage under time constraints....