Tag Archive: mortgage rates


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...

3-year Fixed Rates Are on Fire

Can anyone remember the last time 3-year fixed rates were the lowest widely available conventional mortgage rates? We can’t. But that’s now the case if you’re putting 20% down. For most well-qualified borrowers with 20-29.99% equity, we’d venture to say there’s no better deal right now than the three-year. Not a 1-year fixed, not a 2-year fixed, not even a...

Rate Nuggets: TD and HSBC Cut Big

The latest happenings from the rate world: HSBC Won’t Let Up Despite moving to an everyday-low-rate online model a few years ago, competitors keep thinking (or maybe hoping) that HSBC is just a flash in the pan. Then it does what it did today. The bank hammered rates lower this morning, to: 2.74% for insured 5-year fixed mortgages (down 15...

Rates Slip Further

Canadian interest rates are still sliding. On Monday, Canada’s 5-year bond yield—which drives fixed mortgage rates—closed in the 1.50% range, something it hasn’t done since November 2017. Dozens of lenders have trimmed fixed rates in recent days as yields keep tumbling. And big banks are not excepted. With skidding home sales, weakening property values and mortgage growth near multi-decade lows, the...

Mortgage Rates Heading South Again

There’s an increasingly ominous vibe to Canada’s economic outlook, and that’s got the market taking rates down another notch. Canada’s 5-year bond yield is seven basis points lower today—to 1.63% as we write this. That’s the lowest it’s been since December 2017. All told, the 5-year yield has now sank 83 basis points since the November high. With the Bank of Canada...

Why Aren’t Rate Sites Showing You the Lowest Rates?

The number of Canadians who blindly trust mortgage rate comparison websites is staggering. This year, almost two million households will renew or take out a new mortgage. Of these, CMHC found that over 78% who research mortgages online compare interest rates. The majority of these folks, those who visit a rate comparison website, are simply not being shown the market’s best...

Analyzing Poloz’s Latest Rate Clues

Bank of Canada Governor Stephen Poloz dropped some notable rate-related nuggets in a speech Thursday. Below we ponder the implications of those comments for mortgagors. Here’s what Poloz said: ****** “Inflation expectations have become firmly anchored on our 2 percent target…My children will never pay anything like the kind of interest rates I have paid in my lifetime.” Translation for...

Rangebound Rates are Variable-Friendly

Markets are “well ahead of the data.” …said the world’s most powerful banker Friday. With his comments, Fed chief Jerome Powell reminded everyone that bond markets usually price in economic slowdowns 6-24 months ahead of time. The market’s fear going into today was that the Fed would snuff out economic growth with “auto-pilot” rate hikes, that the Fed wasn’t listening...

Variable Rates: Get ‘Em While Fat Discounts Last

There’s a concerning new trend with variable rates. Discounts are shrinking. In the last few weeks, at least a dozen relevant lenders have shrunk their discounts from prime rate—by anywhere from 5 to 20 bps. This includes discretionary mortgage rates at some banks. How Convenient Wouldn’t you know it? Just as variable rates start attracting more consumer interest, lenders start...

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...