Tag Archive: bond yields


No Price Crash. Quite the Opposite in Some Cities.

—The Mortgage Report: July 7— Price Expectations vs. Reality: “…Consumer expectations for house price growth in Canada dropped to zero,” according to a BoC survey released yesterday. But the data is about a month and a half old. Since then, home prices in the Greater Toronto Area have broken their 2017 record high. Imagine where prices would be if employment...

Canada Kicked Out of the AAA Club

—The Mortgage Report: June 24— We Just Got Downgraded: The government is spending too much and it’s caught up with them. Our record quarter-trillion deficit worried Fitch, a ratings firm, enough to cut Canada’s credit rating today. “Pandemic lockdown measures and depressed global oil demand will cause a severe recession of the Canadian economy,” it says. Fitch projects Canada’s consolidated...

10-year Fixed Rates Sink to Record Lows

—The Mortgage Report: June 19 — Long-term Money on Sale: If you’re willing to commit to a decade-long term, and you live in Ontario, you can now do it for less than at any time in history. 10-year fixed rates are now as low as 2.79% (an effective rate including cash back) for well-qualified borrowers in Ontario. Outside of Ontario,...

One Way to Get a Mortgage Without *the* Stress Test

The Mortgage Report – May 26 Stress Test Exception: Here’s a tip for renewers. If: A) you want to switch to a new lender at renewal, and B) your mortgage closed before October 16, 2016, and C) you haven’t refinanced since… …then some lenders let you qualify at their best 5-year fixed rates instead of at the government’s “stress test” rate (which is...

Coronavirus Mortgage Update – April 1

Sub-1% Rates: One of the greatest economic tragedies in Canada’s history is unfolding before our eyes. When we talk about how low mortgage rates are, it can’t be stressed enough that no one wanted this to be the reason for it. But if there’s one silver lining, it’s variable-rate borrowing costs. 1 in 5 borrowers took out a variable-rate mortgage...

A Bridge to Lower Rates

Despite rates being less than a point from their all-time lows, borrowers are growing increasingly dissatisfied with shrinking mortgage discounts. In the last month, typical 5-year fixed rates have surged 45+ basis points and variable discounts (from prime rate) have decreased by 75+ bps. That’s due mainly to temporary “risk premiums.” In other words, lenders are charging borrowers more because...

Coronavirus Mortgage Update – March 19

6:58 p.m. Update CMHC on Payment Deferrals: “CMHC has provided increased flexibility to defer mortgage payments on its insured homeowner mortgage loans, which means lenders are now able to defer payments on a borrower’s CMHC-insured mortgage up to six months without CMHC’s approval. Borrowers should speak to their lenders directly by going through their default management department to confirm if...

Fed Shocks Market With Sunday Emergency Rate Cut

The world’s most powerful central bank has slashed its main interest rate by one whole percentage point. This is the U.S. Federal Reserve’s largest emergency cut in its 100+ year history. The move is a desperate bid to keep money markets functioning and stimulate borrowing and economic activity. Malls, restaurants, bars, factories, sports seasons, schools, international borders and even Vegas casinos are...

Look Out Below. The Latest from the Rate Collapse

Five quick bulletins from the mortgage market: 1.  Canada’s 5-year swap, which guides fixed mortgage rates, is on track for one of its biggest down days in history. Driving this carnage is the biggest oil rout since the 1991 Gulf War. JP Morgan says, “The oil and gas sector represents about 6% of [Canada’s] GDP but we expect the hit...