Tag Archive: variable mortgage rates


Conversion Rates Reek…Often

There’s no industry-wide data on this, but whenever prime rate starts climbing, lenders tell us that at least 1 in 20 variable-rate borrowers lock in (convert) their variable rate to a fixed rate. And a good number of those borrowers are getting one stinky bum biscuit of a rate. One poor mortgagor I spoke with recently asked his lender to lock in....

motusbank Launches Barrage of Rate Specials

It’s got the best 1-year rate in the country. It’s got the best conventional 2-year rate in the country. It’s got the best 3-year rate in the country. It’s got the best 4-year rate in the country. It’s got the best conventional 5-year fixed refinance rate in the country. It’s got the best variable rate at 80% loan-to-value in the...

Bond Rates Surge Most in 2 Years + More Rate Nuggets

The latest intel from Canada’s mortgage market… Rates Bounce Bigly Canada’s 5-year bond yield catapulted to 1.53% on Friday. Its 11-basis-point gain was the biggest since June 2017. That establishes at least a short-term bottom and suggests the best fixed mortgage rates probably won’t drop much more near-term. In fact, if yields close up in the 1.60’s, the lowest 5-year fixed...

People are Locking in Variables at Lower Fixed Rates

In a normal universe, people who lock in a floating-rate mortgage lock into a fixed rate. And that fixed rate is almost always higher than their current variable rate. But this is not a normal universe. In the world we now live in, variable borrowers are actually locking into five-year fixed rates that are lower than their current rate. For...

Trump vs. Xi. Let’s Get Ready to Rumble

Not much going on this weekend. Only a little meeting between the world’s two most powerful leaders about 2019’s single most important economic issue. U.S. prez Trump and Chinese supreme head communist guy, Xi, collide over trade ahead of Saturday’s G-20 summit in Japan. And, batten down the hatches, because it has the potential to be a short-term tide changer...

5-Year Fixed Mortgage Rates Now Lowest Since 2017

This week, the lowest 5-year fixed rates dropped back to 2017 levels. It only took a year and a half. Canada’s cheapest 5-year fixed mortgage is now 2.67% for default-insured applicants, the lowest since December 20, 2017. And fixed rates could keep dipping near-term. What’s Behind It With global growth worries weighing on the market, 5-year bond yields can’t get any...

HSBC 10-Year Fixed Rates Smash the 3% Barrier. First Time Ever (Updated)

If you were wondering what it’ll take to get more people interested in a 10-year fixed, here’s your answer: A rate below the psychologically pivotal 3% level. Today, HSBC has become the first lender in Canadian history to sell 10-year fixed mortgages as low as 2.94%. (Note: Our story has been updated as this rate dropped again on Saturday May 18,...

Mortgage Rates Under 3% Shine…If Neutral is 2%

BMO Capital Markets has taken a “scalpel to [its] Canadian rate forecast,” as it describes it. The company now projects just one Bank of Canada rate increase in all of 2019. By comparison, financial traders peg the odds of a rate hike this year at just 49%. That’s according to implied probabilities in the bond market, as tracked by Reuters. BMO is...

The Stealth Hike in Variable Rates

The most unexpected trend in the mortgage rate world of late has been the squeezing of variable-rate discounts. The Spy warned of diminishing variable-rate discounts last month. Since that time, they’ve shrunk 20 basis points on the most competitive uninsured variables, costing new borrowers over $2,300 more interest over five years on a typical $250,000 mortgage. On the insured side, the...

The Fixed-Variable Spread Shrinks Further

A regular consideration when choosing between a fixed or variable rate is the difference between them. As of late that “fixed-variable spread,” as we jargony industry people call it, has been slowly narrowing. So far, it has mostly been a result of diminishing variable-rate discounts. Just this morning, for example, TD hiked its advertised variable rate a head-turning 20 bps....