Mortgage Rate News

Are Homebuyers Too Optimistic?

Canadians are more gung-ho than ever to buy a house. RBC’s latest Home Ownership Poll found that nearly a third of Canadians (32%) still expect to buy a home within the next two years. That’s the highest level of homebuying intention Canada has seen since 2010, and up 7% from last year. This is despite a string of new mortgage...

Who Offers Fixed-Payment Variable Mortgages?

Variable rates can present a catch-22. On the one hand, variables are almost always cheaper than most fixed mortgages. And they also let you capitalize on falling interest rates. On the other hand, when rates start climbing, so do your interest costs. That risk keeps a lot of people from even thinking about floating their mortgage rate. But it doesn’t have...

History of Mortgage Rule Changes in Canada

The most extraordinary thing about Canadian real estate is how it has shrugged off rule change after rule change in the mortgage market. We’ve seen governments impose over 60 housing finance restrictions since 2008, the height of the global credit crisis. These policies shrank the number of qualified borrowers and inflated mortgage costs. And yet, far from collapse, the market is...

Get a Free Credit Report: Your Rate May Depend on It

Imagine this. You’ve just found the perfect house after weeks of searching. You’ve clawed together every available dollar for the down payment. You’ve gathered up all the necessary documents. And you’ve found an amazing mortgage rate on the Spy. But wait. What’s that? Your credit score has sunk to 645?!? Those two missed payments, 85% credit utilization and recent credit...

Shady Mortgage Specialist Practices: FCAC Report

Let’s be clear on one thing. Most bank mortgage specialists are good people who do the right thing. Then, there are the other kind. Consumer watchog, the Financial Consumer Agency of Canada, is targeting those reps with a cautionary critique of mortgage sales practices at the big banks. The agency is worried that banks may be placing “sales ahead of...

Canadians Notoriously Indifferent About Rate Shopping

You know the situation is bad when Canadians need to be told by a bank to shop around for mortgage rates. While we at the Spy beat that drum daily, banks are normally happy to sell you mediocre “special offer” rates, or even posted rates (for renewers who are gullible enough). That’s why it’s eye-catching to see Larry Tomei, Executive...

Canada’s Most Misconstrued Mortgage Study

If we only had a milli-bitcoin for every time someone said this: “…Long-term data tells us that a variable-rate mortgage is the best option.”—LowestRates.ca No, it doesn’t. What the “data” tell us is that a variable-rate mortgage was the best option in a specified timeframe based on particular assumptions. The data in no way mean that a variable-rate mortgage is the best...

A New Leader in Mortgage Rate Holds: BMO

BMO now has the longest regular rate guarantee period of any Big 6 Bank. On Tuesday, Canada’s fourth largest bank upped its rate hold period from 90 to 130 days. Prior to that, 120 days was the longest normal rate hold of any big bank. Note: “Normal” rate hold means a rate hold that applies to the lender’s regular rates. Banks...

Prime Rate Stays at 3.45%: Bank of Canada

Your interest rate burden got no heavier today. The Bank of Canada gave floating-rate borrowers a breather by leaving its policy rate at 1.25%. Holding the Bank back were these concerns: NAFTA “uncertainty” “Slower than expected” Q4 GDP growth Weaker than expected “wage growth” Canadians’ “sensitivity to higher interest rates” Household credit growth that’s dropped for “three consecutive months.” Inflation, which...

CIBC’s 5-year Fixed Special, Sign of the Times

With the spring market on deck and bond yields sliding, big banks are sharpening their pencils on 5-year fixed pricing. Today we saw BMO cut its “Smart” 5-year fixed rate by 20 basis points, from 3.49% to 3.29%. (Best BMO mortgage rates) Then we saw CIBC launch a new 3.19% 5-year for high-ratio mortgages only. (Best CIBC mortgage rates) That...