Markets predicted the Bank of Canada would do nothing to rates for the 11th straight month…and they were right. Here’s a quick look at the BoC’s rate statement: Rate Decision:No change Overnight rate: Remains at1.75% Prime Rate: Remains at 3.95% Market Rate Forecast:No change to prime through 2020 BoC’s Headline Quote: “…Canada’s economy is operating close to potential and inflation...
After five months of buildup, the government’s controversial First-Time Home Buyer Incentive is now live. Kind of. Applications for the program, which lowers borrowers’ interest and default insurance costs (using taxpayer dollars that may or may not be recouped), are supposed to be available here. But the forms aren’t on the government’s website yet, despite the September 2 launch date....
If there’s one thing the major banks wish would go away, it’s talk about their fixed-rate mortgage penalties. Competitors constantly use accounts of huge bank penalties to sell against the banks, and the media picks up on it. Expect more of this as mortgage penalties approach record highs. In the last few months, we’ve seen non-bank lenders increasingly market their...
Any creditworthy mortgage shopper is practically guaranteed to get a better rate today than they could have at the start of the year. Fixed mortgage rates have been on a ski slope this year, sliding to two-year lows this month. If you’re wondering how far they’ve tumbled, here’s a look. These were the best widely available 5-year fixed rates, as...
Just when you think it’s safe to go back in the water, just when you think rates might be putting in some kind of floor, the bottom falls out again. Canada’s 5-year government yield did a 180 on Friday. After shooting higher earlier, it plunged 11 bps to end the week. It falls that much only about 1 in 100...
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...
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 payingborrowers instead of collecting interest from them. And now with global yields at 120-year lows, it’s happening. Negative mortgage...
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 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 uninsuredpurchases, switches and refinances (from another lender) Canada’s lowest...
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) Researchfrom Marcato and Nanda (2014) confirmed...
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