Tag Archive: banks


Two Big Banks Slash 5-Year Fixed Rates. 2.99% is “Officially” Here Again (Updated)

TD and CIBC just became the first Big 6 banks to advertise 5-year fixed rates below 3% since 2017. This morning, TD and CIBC chopped their advertised 5-year fixed specials by 32 basis points (to 2.97%) and 30 bps (to 2.99%), respectively. Banks seldom cut that much in one sitting. Albeit, sources tell us both banks have been selling 5-year...

New Capital Requirements: The Rate Impact

It’s sort of counterintuitive that making banks safer often costs you more as a borrower, but that’s what may happen in this case. Canada’s banking regulator (OSFI) has raised the minimum capital that banks must maintain…again. And there’s a good chance banks could take it out on mortgage borrowers, eventually. Here’s What Happened Back in June, OSFI created the “Domestic...

How the Lowest Rates Cause Banks Headaches

For years now, policy-makers have been reining in government backing of the mortgage market, ostensibly to “reduce taxpayer risk.” Meanwhile, the riskiest mortgages in the prime owner-occupied market get the best mortgage rates. A “high-ratio” default insured borrower with only 5% down, for example, can fetch 5-year fixed rates at 3.29% or less. Yet, an uninsured borrower with four times the equity...

Waiting for a Rate Drop?

So are a lot of other people. So far, all we’ve gotten is a dozen large or mid-sized lenders hiking 5-year fixed rates over the past week or so. Meanwhile, the 5-year swap yield (one of the best leading indicators for fixed mortgage rates) is back down to levels it saw six months ago. Back then (in May), the best...

National Bank’s New Online Mortgage Pre-approval

In the next few years you’re going to see press release after press release announcing new mortgage technology from big banks. And that’s a good thing. Big banks are finally innovating mortgage processes that have been materially unchanged for years. And it’s being inspired by countries that are well ahead of Canada in online mortgage innovation. Take the UK, for...

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...