Mortgage Rate News

Get a Free Credit Report: Your Rate May Depend on It

Imagine this. You’ve just found the perfect house after weeks of searching. You’ve clawed together every available dollar for the down payment. You’ve gathered up all the necessary documents. And you’ve found an amazing mortgage rate on the Spy. But wait. What’s that? Your credit score has sunk to 645?!? Those two missed payments, 85% credit utilization and recent credit...

Shady Mortgage Specialist Practices: FCAC Report

Let’s be clear on one thing. Most bank mortgage specialists are good people who do the right thing. Then, there are the other kind. Consumer watchog, the Financial Consumer Agency of Canada, is targeting those reps with a cautionary critique of mortgage sales practices at the big banks. The agency is worried that banks may be placing “sales ahead of...

Canadians Notoriously Indifferent About Rate Shopping

You know the situation is bad when Canadians need to be told by a bank to shop around for mortgage rates. While we at the Spy beat that drum daily, banks are normally happy to sell you mediocre “special offer” rates, or even posted rates (for renewers who are gullible enough). That’s why it’s eye-catching to see Larry Tomei, Executive...

Canada’s Most Misconstrued Mortgage Study

If we only had a milli-bitcoin for every time someone said this: “…Long-term data tells us that a variable-rate mortgage is the best option.”—LowestRates.ca No, it doesn’t. What the “data” tell us is that a variable-rate mortgage was the best option in a specified timeframe based on particular assumptions. The data in no way mean that a variable-rate mortgage is the best...

A New Leader in Mortgage Rate Holds: BMO

BMO now has the longest regular rate guarantee period of any Big 6 Bank. On Tuesday, Canada’s fourth largest bank upped its rate hold period from 90 to 130 days. Prior to that, 120 days was the longest normal rate hold of any big bank. Note: “Normal” rate hold means a rate hold that applies to the lender’s regular rates. Banks...

Prime Rate Stays at 3.45%: Bank of Canada

Your interest rate burden got no heavier today. The Bank of Canada gave floating-rate borrowers a breather by leaving its policy rate at 1.25%. Holding the Bank back were these concerns: NAFTA “uncertainty” “Slower than expected” Q4 GDP growth Weaker than expected “wage growth” Canadians’ “sensitivity to higher interest rates” Household credit growth that’s dropped for “three consecutive months.” Inflation, which...

CIBC’s 5-year Fixed Special, Sign of the Times

With the spring market on deck and bond yields sliding, big banks are sharpening their pencils on 5-year fixed pricing. Today we saw BMO cut its “Smart” 5-year fixed rate by 20 basis points, from 3.49% to 3.29%. (Best BMO mortgage rates) Then we saw CIBC launch a new 3.19% 5-year for high-ratio mortgages only. (Best CIBC mortgage rates) That...

Advice Valued More than Ever

It used to be a lot easier to understand mortgages. But since January 2016 alone, we’ve seen: Minimum down payments increased to 10% for any portion of a mortgage above $500,000 Restrictions on refinancing Rates become much more dependent on: loan-to-value (because of changes to default insurance) amortization credit scores A stress test required for all insured mortgages, using the...

HELOCs: The Next Lending Crackdown?

HELOC balances appear to be surging at their fastest pace in five years—even faster than mortgages, reports Bloomberg. That’s got ever-vigilant regulators raising an eyebrow. And it’s got certain lenders we talk to expecting HELOCs to be the next area of mortgage rule tightening. Under the Microscope Currently, 2 in 5 secured residential loans in this country (roughly 3 million)...

OSFI and the Giant Gorilla

Mortgage growth in Canada is like King Kong—it’s hard to kill. You can riddle it with bullets (mortgage rules), but it just keeps beating its chest and roaring on. More than 60 mortgage rule tightenings later (including insurance and securitization fee increases) the question is, has Canada’s mortgage market finally been shot down? Nationally, average home prices are already down...