Canadian government bond yields, which lead fixed mortgage rates, are essentially adrift at sea. They, like so many other global yields, seem to just be biding time until positive (or negative) trade news breaks out of Washington. There’s so much uncertainty out there that it makes even less sense than usual to try and time the market. When President Trump...
The First-Time Home Buyer Incentive can’t be considered a dud, yet. But it’s surely not impressing anyone. What is the FTHBI? As the feds put it, “the government offers you financing [i.e., a 5-10% bigger down payment] without interest. This helps reduce your monthly mortgage payment without increasing your down payment.” One of its champions, CMHC CEO Evan Siddall, said...
Central banks around the world have been cutting rates. But, so far, the Bank of Canada has avoided joining that club. One of its worries is that lower interest rates would reignite the mortgage and housing markets, adding to Canadians’ already toppy debt loads. Deputy BoC Governor Carolyn Wilkins reiterated these concerns in a speech yesterday. “You’ve heard us say...
Where did all the first-time buyers go? New data from CMHC suggests there are noticeably fewer of them out there (stats below). Maybe they’re hibernating until they can save up a bigger down payment, amid home prices that (in many regions) remain near record highs. Or, perhaps fewer of them are able to pass the mortgage stress test given today’s...
More people are researching mortgages online before they confront a lender or broker. That’s the good news. The bad news is that less than 1 in 3 are using sites like this to research mortgage rates, if CMHC’s latest data is accurate. The percentage that do use rate sites is up materially from last year’s 22%, but still too many...
People are constantly hoping to time the rate market, despite how ineffective it may be. For the brave souls who try, here’s some interestingresearch from the U.S. Federal Reserve. One of its economists,Claudia Sahm, has documented a pattern in unemployment data. In her Fed report, she writes, “…Comparing the three-month average [U.S.] unemployment rate to its low over the prior...
If you knew where inflation was headed, you’d have a great chance of knowing where mortgage rates were headed. The latter rises and falls with the former. That’s why so many people try to predict inflation. Among the many who think they know where it’s going: The 100 senior Canadian businesspeople surveyed by the Bank of Canada every quarter 2...
When Scotiabank launched its eHOME Mortgagein March, it promised a faster, easier way to get a big-bank mortgage, with compelling rates to boot. Since then, industry-types have watched and wondered if eHOME would get much traction. It has. “When we built Scotiabank eHOME, we set out to create a unique mortgage experience for our customers, focused on simplicity, security, transparency...
Special to RateSpy, By John Bordignon, Capital Markets Consultant Earlier this year, while calling for innovation in the mortgage industry, Bank of Canada Governor Stephen Poloz discussed the need for mortgages longer than five years. Longer-term mortgages, he explained, would benefit both consumers and the Canadian financial system. Based on volumes to date, Poloz’s comments moved the needle only slightly...
The Bank of Canada said today that it’ll keep coasting on rates. But the market isn’t so sure. Investors think our central bank may have to cut sooner than some expect. Here’s a summary of this morning’s decision: Rate Announcement:No change Overnight rate: Remains at1.75% Prime Rate: Remains at 3.95% Market Rate Forecast:One rate cut in 2020 BoC’s Headline Quote:...
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