For years you’ve been able to apply for a big-bank mortgage on the internet. But you’ve never been able to complete the entire approval—including choosing a good rate—100% online. That changed in 2019. TD and Scotiabank became leaders by launching digital mortgage applications where consumers could process almost the entire mortgage online—by themselves—including choosing a discounted rate. And that rate...
TD has become the first Big 6 bank to lower its posted 5-year fixed rate since July 2019. The move comes amid plunging bond yields and just 11 days after the banking regulator (OSFI) essentiallyblamed banks for keeping posted rates too high. By doing so, banks haveinflated the federal mortgage qualifying rate, makingit unnecessarily difficult for borrowers to pass the...
Sometimes well-intended rules and regulations cost consumers money. Here’s a perfect example… British Columbia currently has a prohibition on charging fees for mortgage advice unlessthose fees are deducted from the mortgage amount at closing. The rule was designed to prevent brokers from taking money from unsuspecting consumers and then not providing the financing requested. It’s a rule that’s served a...
Here’s some good news for people who’ve been blocked from qualifying for a mortgage due to the government’s “stress test.” Canada’s banking regulator (OSFI) is taking a second look at the mortgage stress test calculation, which requires borrowers who are not default insured to prove they can afford a monthly payment at the greater of: (A) Their actual mortgage rate...
Today’s big mortgage headlines… Coronavirus Rate Sale Bond yields are getting killed as investors pile into bonds for safety. Traders fear a next coming of SARS (which authorities call the Wuhan coronavirus) could be deflationary. That’s weighing on rates as the inflation outlook is a key rate driver. Fear of the unknown has shaved 1/4 point off Canada’s 5-year bond...
The popularity of fixed mortgage rates in 2019 was unmistakable. But the Bank of Canada may have moved the needle for variable rates with its comments Wednesday. Below are the week’s top 10 statements from the BoC, all of which will be of interest to any serious rate watcher. The below quotes come from Bank of Canada Governor Stephen Poloz...
Canada’s rate-setter left its key rate untouched today while striking a less-than-cheery chord on the country’s outlook. Here’s a quick take on this morning’s Bank of Canada rate decision: Rate Announcement:No change Overnight rate: Remains at1.75% Prime Rate: Remains at 3.95% (seePrime Rate) Market Rate Forecast:One rate cut in 2020 BoC’s Headline Quote: “…Governing Council will be watching closely to...
How much would you have to save to deal with a mortgage lender that had no in-person or telephone advisors, just ultra-low rates, live chat support and a reliable, efficient user experience? If you’re like 16% of mortgage shoppers, you wouldn’t deal with that kind of lender at all. If you’re like 18% of mortgage shoppers, you’d happily use an...
It’s a fact; little better than 1 in 4 Canadians have any idea what amortization means, according to a recently-released Ipsos survey. Surprisingly, “…Less than 1% of respondents gave a strictly correctresponse by saying only that it means “the time to pay the mortgage in full,'” Ipsos wrote in its report. Just as eye-opening, 14% of people claimed to have...
The 2020s won’t be the decade to lock into a long-term fixed mortgage, not if you believe RBC Economics. It’s projecting just 1.7% annual economic growth for the next 10 years, give or take. That’s roughly a full point less than before the Great Recession. At 1.7% GDP, there’s generally very little reason for rate hikes. Quite the opposite, RBC...
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