Mortgage Rate News

motusbank Launches Barrage of Rate Specials

It’s got the best 1-year rate in the country. It’s got the best conventional 2-year rate in the country. It’s got the best 3-year rate in the country. It’s got the best 4-year rate in the country. It’s got the best conventional 5-year fixed refinance rate in the country. It’s got the best variable rate at 80% loan-to-value in the...

Negative Mortgage Rates in Canada

I had a chat with BNN Bloomberg’s Greg Bonnell Monday about “sub-zero mortgage rates.” A dozen years ago, uttering those words might have branded you a radical. Some would have questioned your credibility had you even proposed the thought of banks paying borrowers instead of collecting interest from them. And now with global yields at 120-year lows, it’s happening. Negative mortgage...

When Porting a Mortgage Goes Wrong

Your mortgage is portable, right? Almost all mainstream lenders claim their mortgages are portable. But portability clauses have more caveats than a prenuptial agreement—so many that people hoping to port are routinely disappointed. Back in 2011, about 3 out of 8 home sellers used to port their mortgage. But the percentage who port has been steadily sinking since then. We’d...

HSBC Leads Nation (Again) on 5-Year Refis + Rate Nuggets

HSBC Chops 5-Year Rates Canada’s biggest mortgage industry disrupter is at it again. HSBC dropped its bank-leading 5-year fixed rates today by another 10 basis points. Among its latest 5-year fixed offers: 2.49% for high-ratio mortgages The lowest nationally advertised insured rate available directly from a lender Rate Details 2.59% for uninsured purchases, switches and refinances (from another lender) Canada’s lowest...

Your Future Home Price Hinges on Public Perception

If you’re a homeowner, you want your property value to escalate over time. But market fundamentals—those economic factors that drive supply and demand—aren’t alone in determining your home’s worth. There’s something else that can be just as important: what your neighbours and people you know think prices will do. Price Expectations Matter (a lot) Research from Marcato and Nanda (2014) confirmed...

Don’t Trust Prime Rate

Remember the days of: VCRs Paper maps Beepers Being able to rely on banks lowering prime rate when the Bank of Canada cut its overnight rate? Well, times change. And so has the pressure on banks to grow earnings each quarter. Falling rates and a flattening yield curve have squeezed bank profitability, leading them to resort to unconventional earnings tactics....

Canadian Rates Plunge to Two-Year Low

President Trump has figured out how to get his way and force more rate cuts out of the Federal Reserve: Create trade panic. Trade wars—exacerbated last week by Trump’s latest gambit—could cost the global economy up to $1.2 trillion and pressure the Fed to cut rates more than expected. North American yield curves inverted further on this news, suggesting higher probability of...

Mortgage Paydown Overtakes Investing

The #1 financial priority for people with a mortgage is, you guessed it, paying down their mortgage. 42% of Canadians with mortgages say that is their top money goal, according to Manulife Bank’s latest Canadian Debt Survey. And it’s a number that may rise. Fuelling the Trend The urgency to become mortgage-free could intensify further over time, for several reasons: Mortgage Balances Have Grown: Mortgage...

What the Fed Rate Cut Decision Means for Canadian Mortgages

Canadian mortgage rates take their cues from many things, and U.S. monetary policy is near the top of the list. That’s why today’s Fed rate cut—the first since the financial crisis—is meaningful to borrowers. Fed decisions always move Canadian rates in some respect but in this case, key questions remain. Here are the two biggest ones. How Many Cuts Are...

RateSpy Joins the Kanetix Family

The Spy’s mission to arm Canadians with better rate intelligence took an exciting turn this morning. RateSpy announced that it has joined Kanetix, Canada’s insurance comparison leader. What it means for our fellow spies is faster progress towards RateSpy’s ultimate goal: equipping Canadians with powerful tools to negotiate lower rates on their mortgage. The road at RateSpy.com started a decade...