Tag Archive: home prices


Who Repealed the Law of Supply and Demand?

. If you want to pay less mortgage interest, it helps to have a cheaper home. If you want a cheaper home, it helps if there are more homes than people want to buy. Cue the Economics 101 reference. Yet, there are some who’d like us to believe that demand, not supply, is the problem. As if not having enough...

A New Low for 5-year Refinance Rates

—The Mortgage Report: Sept. 15— Never before has Canada seen an uninsured 5-year fixed nationally advertised for 1.84%. But on Tuesday we saw it, courtesy of Tangerine. At 1.84%, Tangerine’s rate is now just 4 basis points above the lowest nationally advertised uninsured variable rate. As usual, you’ll find even lower default-insured and insurable 5-year fixed offers if you shop...

iBuyers Are Changing the Game…Slowly

—The Mortgage Report: Aug. 19— Properly’s “Backup Offer” for Home Sellers Someday, the majority of Canadian home sellers will get a quote from an iBuyer. What’s an iBuyer? It’s a company that offers you roughly 7% less than fair market value to buy your home…fast. Why would someone take 7% less? Because real estate commissions are usually 4-6% anyway, and...

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...

People Get Squeezed on Mortgage Renewals

—The Mortgage Report: Weekend Edition— Renewal Tax: Borrowers get worse deals on mortgage renewals than on brand new mortgages. And it’s been that way for decades. Interest rates on renewals have historically been about nine basis-points (0.09%) higher than rates on new mortgages. That’s based on a survey of five-year uninsured mortgages from 19 of the largest federally regulated lenders...

CMHC Bearish on Home Prices, But…

—The Mortgage Report: June 23— Prices Will Fall, Unless They Don’t: “Short-term uncertainty will lead to severe declines in sales activity and in new construction,” CMHC reported Tuesday. “House prices will fall as well and are unlikely to recover over the horizon of this report (through 2022).” But that statement is a tad general. It would be a mistake to...

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,...

Genworth Doesn’t Follow CMHC Changes

The Mortgage Report – June 8 2:35 p.m. Update CMHC on Its Own: If you’re buying with less than 20% down and can’t qualify under CMHC’s stricter insured mortgage rules, you still have options. Effective July 1, CMHC is lowering the maximum debt you can carry, raising its minimum credit score to 680 and banning certain borrowed down payments. But...

Compare & Save: BoC

The Mortgage Report – May 27 Shop Rates, Says Bank of Canada: “The price of a mortgage can vary a lot among lenders…You’ll most likely find a lower interest rate if you do your homework and are willing to negotiate.”—Bank of Canada The BoC Does Move Fixed Rates: It’s a misconception that the Bank of Canada only influences variable mortgage...

One-year Rates as Low as 1.99% IF Your Mortgage is Insured

The Mortgage Report – Weekend Edition More Sub-2% Rates: For default-insured borrowers, there’s now up to three mortgage terms in the magic 1% range, depending on your province. They include the one-year fixed, three-year fixed and variable. In coming weeks, more borrowers could strategically choose shorter fixed terms to: (a) wait for better variable-rate discounts in 2021, and/or (b) get...