Mortgage Rate News - Notice to Readers: Our mortgage news is now at RATESDOTCA

B2B Now Allows Income Proof Via Business Bank Statements

Self-employed? Don’t declare enough income on your tax returns? Want a mortgage? Lenders are waiting to lend to you. But there’s a price. Their “non-prime” (a.k.a., “alternative”) lending options always come with a rate premium. We don’t talk about non-prime financing very often, but a new such product from B2B Bank is worth a look. B2B Bank recently re-launched its “Business Bank...

10-year Fixed Rates Now As Low As 2.99%. More Things to Consider (Updated)

This weekend, HSBC seemingly sweetened its 10-year fixed offer even more. It dropped the rate on its website for insured mortgages from the 2.99% announced in its press release Friday to 2.94%. It turns out that was a IT issue. “When they launched the rates, the rate were incorrect on the website,” a spokesperson said. “We have since corrected the...

HSBC 10-Year Fixed Rates Smash the 3% Barrier. First Time Ever (Updated)

If you were wondering what it’ll take to get more people interested in a 10-year fixed, here’s your answer: A rate below the psychologically pivotal 3% level. Today, HSBC has become the first lender in Canadian history to sell 10-year fixed mortgages as low as 2.94%. (Note: Our story has been updated as this rate dropped again on Saturday May 18,...

Foreigners Sway Canadian Mortgage Rates

Do you care if some investor in China or France dumps Canadian bonds? Many would answer, no. But when foreign demand for Canadian bonds drops, other things equal, bond prices drop. And given bonds and yields (interest rates) move inversely, and given fixed mortgages are partially funded in the bond market, when overseas demand for Canadian bonds falls, it usually...

HELOC Growth Isn’t What Everyone Thought

It turns out home equity lines of credit (HELOCs) aren’t growing as fast as previous government reports suggest. Prior regulatory filings showed HELOC balances increasingly at roughly double the pace of mortgages. Now, a new report from the Bank of Canada confirms the opposite. “The total balance of HELOCs contracted by 1% year-over-year…” in the fourth quarter of 2018, it...

Scheer Promises to End Mortgage Stress Test on Switches

One of the worst mortgage policies in Canadian history could come to an end by next year. That is, if the Conservatives win the October 21 federal election. Conservative Party leader Andrew Scheer summarized the problem for the Canadian Home Builders’ Association on Friday, saying: “If you want to switch lenders you have to go through the stress test. But if...

Fair Penalty Lenders: Which Lenders Have the Lowest Mortgage Penalties?

Which lenders have the best (lowest) mortgage prepayment penalties? It’s a question we’re asked continually. So we’ve now created a list of them. If you want to know if your lender will treat you fairly (i.e., charge you a reasonable penalty for breaking your mortgage early), read on. What’s a “fair penalty?” A fair penalty is a mortgage prepayment charge...

Interest-Only Mortgages. Back in Canada

You’ve probably never thought about not paying the principal on your mortgage. It sounds almost un-Canadian. But it’s a crazy-sounding idea that, in limited cases, is not so crazy. Out of thousands of home loans in Canada, only two products let you pay just the interest each month: A Home Equity Line of Credit (HELOC) An interest-only mortgage (I/O). HELOCs...

Poloz Pushes Longer Mortgages

Three-decade-long mortgages are a mainstay in the U.S. mortgage market. But in Canada, 5-year fixed terms dominate the landscape. Forty-five per cent of mortgagors chose them last year, says the Bank of Canada. BoC chief Stephen Poloz wants to see that change. In what he termed a “call to arms,” he challenged the mortgage industry to think outside the five-year fixed....

A Falling Neutral Rate Implies Limited Variable Rate Risk

It’s remarkable how much people focus on the Bank of Canada’s “neutral rate” nowadays. It has become a lighthouse in the rate fog. People rely on it to gauge how far we are from “normal” interest rates. If you’re not familiar with the “neutral rate,” it’s basically the theoretical overnight rate that neither accelerates nor slows the economy and inflation. Last...