Tag Archive: variable mortgage rates


We’re Floating Closer to Prime – 1.00%

—The Mortgage Report: Sept. 18— Variable Discounts Improve Further Bankers are making more dinero on floating-rate loans. That’s motivating them to cough up some profit and sharpen their variable rate pencils. Online brokers are now effectively as low as prime – 0.93% on default-insured variables in some provinces. Uninsured customers (including those refinancing) get milked for more, as usual, but...

Bank of Canada Re-Signals a Long Road to Recovery

Quick Rundown Today’s Announcement:No change to rates Overnight rate:0.25% Prime Rate:2.45% (also no change; seePrime Rate) Market Rate Forecast:No BoC hikes until at least 2023 BoC’s Headline Quote: “The Governing Council will hold the policy interest rate at the effective lower bound [intended to be 0.25%] until economic slack is absorbed so that the 2% inflation target is sustainably achieved.”...

A New Frontier for Fixed Mortgage Rates

—The Mortgage Report: Aug 21— Boldly Going Where No 5-Year Fixed Rate Has Gone Before For the first time, pricing on Canada’s most in-demand term is now effectively as low as 1.59%. That’s for default-insured 5-year fixed mortgages in Ontario. Consider that just 18 months ago rates were double what we see today. On the uninsured side, we’re getting multiple...

Variable-rate Advantage All But Gone

—The Mortgage Report: July 28— A Paper-Thin Spread: The gap between fixed and variable rates is as narrow as it’s been in months. The most competitive mortgage providers now sell 5-year fixed rates for less than 7 basis points above the cheapest variable rates. That “fixed-variable spread” could soon become negative, as it was in early March. Fixed rates are...

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...

How Low Can Inflation Go?

— The Mortgage Report : June 17 — Prices Slide: The Bank of Canada wants average core inflation at/near 2%, but it’s currently 1.67% and diving. That’s noteworthy for borrowers given inflation expectations are a primary determinant of mortgage rates. Inflation’s descent may slow thanks to rebounding oil prices, but it’ll continue dropping economists say—potentially to lows we haven’t seen...

HSBC’s Record-Low 1.99% 5-year Fixed

The Mortgage Report – June 5 Big Drops from HSBC: The online mortgage juggernaut keeps shaking competitors’ trees. This time with Canada’s lowest bank-advertised 5-year fixed rate ever, according to our records. It’s also the first bank to crack the 2% barrier on a 5-fixed, albeit it’s for default-insured mortgages only. HSBC’s move not only reflects historically low funding costs,...

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...

The Stress Test Rate Could Fall Again

Mortgage Report – May 12 Not So Timely: The government’s 5-year bond yield, which heavily influences fixed mortgage rates, peaked in October 2018. Since then, it has collapsed 212 basis points. Meanwhile, big banks have lowered 5-year posted rates just a stingy 30 basis points. The banking regulator (OSFI) considers that a problem and proposed to de-link the mortgage stress...

Today’s Value Zone: 3-year Rates

Mortgage Report – May 11 Hitting Triples: Borrowers would love to see 5-year fixed rates under 2% and eventually they’ll get there. But for now, banks are “reducing mortgage rate discounts to conserve profitability,” as Deloitte put it in a recent report. Alas, we’ll have to make do with the historically low rates we already have. And for all you...