Mortgage Rate News

Variable Rates Going the Wrong Way

Variable mortgage rates are under some pressure. A half-dozen lenders, including some major banks and large non-bank lenders, have shrunk their variable-rate discounts by 0.10 to 0.15 percentage points in the last few days. Their going rate is now prime – 0.50%. Lenders blame it on a combination of: Shrinking mortgage spreads (Spread refers to the difference between what a lender lends at and its cost...

Mortgage Rate Curve

Lenders’ funding costs in the fixed-rate market have been trending up for two weeks. Yet still, we’ve seen a small dip in the best 5-year fixed rates. Variable rates have been mostly unchanged. For risk-tolerant borrowers: 2-year terms under 2.00% provide an excellent combination of refinance flexibility and up-front rate savings. They’re also appealing for those who want to enjoy today’s historically low rates...

Compare Monthly Payments – New!

It’s often helpful to know how much extra interest you’ll pay with a higher rate, a bigger mortgage, shorter compounding and/or a longer amortization. Now, the Spy makes that easy with an all-new monthly payment calculator. This tool lets you: Compare three different mortgages Instantly find the lowest cost option View interest cost over the term and amortization Check your balance at...

The Fallacy of “Must Go Up”

You really should lock in your mortgage. Rates are historically low and they have to go up…eventually. Sound familiar? It may well be one of the costliest fallacies in today’s mortgage market. It’s kind of like saying stocks have to fall because the market is already up 200%. Or home prices must drop because they’re up 80% in just a...

Mortgage Rate Curve

The chart below shows the average best rates for each mortgage term on RateSpy.com. It provides a good sense of rate premium you’ll pay for the security of a fixed rate and/or longer term. Trends from the last 30 days The 5-year fixed is the most-chosen term in Canada. Its uptake is slowly declining, however, as more Canadians anticipate that low rates will...

Variable Rates Gain Appeal

The mortgage market is a bit like Baskin Robbins. The flavour of the month can change. Take the popularity of variable rates, for example. “The proportion of new mortgages being advanced at variable rates has increased over the past several years and has reached about 32% (in April 2015),” says the Bank of Canada (BoC). Compare that to all outstanding mortgages, in which...

CIBC’s New Rate Specials

The nation’s fifth-largest bank has just rolled out two juicy new rate specials: A 1.99% one-year fixed A 2.99% seven-year fixed Both rates are the lowest in the country for their respective terms, and the lowest in recent memory for a major bank. But one is far more enticing than the other—that is, CIBC’s new one-year promo. At 1.99%, it undercuts most heavily discounted variable rates. Moreover, the...

Mortgage Rate Curve

The chart below shows the average best rates for each mortgage term on RateSpy.com. This graph provides a sense of how much of a rate premium you’ll pay for the security of a longer-term and/or fixed rate. Key Takeaways from the last 30 days The most popular term in Canada is still (no surprise) the 5-year fixed. Those rates start...

Mortgage Rate Curve

The chart below shows the average best rates for each mortgage term on RateSpy.com. This graph provides a sense of how much of a rate premium you’ll pay for the security of a longer-term and/or fixed rate. Key Takeaways The difference (spread) between 5-year fixed and variable rates has shrunk in recent weeks to roughly 0.39 percentage points. That’s far less than...

Mortgage Rate Complacency

One of the worst things a mortgage shopper can do is assume that a lender’s rates are competitive. For evidence of that, look no further than the latest data from our nation’s largest default insurer, CMHC. It reports that borrowers who closed insured 5-year fixed mortgages in the third quarter of 2014 paid an average rate of 3.37%. That’s somewhat remarkable when you realize that the...