Tag Archive: variable rates


Many are Prepared to Take Chances with Rate Fluctuations

At the time this is being written (10:45 p.m. ET March 29), the top five most popular rates on our site are floating rates. It’s the first time we’ve seen this in weeks. And those numbers are based on tens of thousands of visitor clicks. Given that fixed rates usually dominate, what does this suggest? Well, among other things, it...

Variable-rate Mortgages Should Get Cheaper

Variable rates on new mortgages could get a little cheaper this quarter, for one of four reasons, or maybe all four: Bankers’ acceptance (BA) rates — a general proxy for variable-rate funding costs — are at an all-time low. That’s boosted the spread between prime rate and BAs to almost a 12-year high. Think of that spread as a rough...

HSBC’s 0.99% Mortgage Rate Stirs Up Market

—The Mortgage Report: Dec 7— HSBC’s 0.99% variable-rate special remains the talk of the industry. Consumers have noticed, too. Online mortgage searches are up nearly 50% in the last week, according to Google Trends. Here’s more of the latest on HSBC’s headline-making offer: January 3, 2021, is officially the last day to apply, according to HSBC’s terms and conditions. It’s...

The Chance of Negative Rates Remains

“We are not actively discussing negative interest rates at this point, but it’s in our toolkit and never say never.” Bank of Canada Governor, Tiff Macklem That comment from Canada’s monetary kahuna, Tiff Macklem, put a glimmer of hope in the eyes of variable-rate mortgagors this week. By leaving the door open to sub-zero rates, even if just a crack,...

Variable-Rate Discounts on the Path to Recovery

The Mortgage Report – June 2 HSBC Cuts: HSBC dropped two key variable rates: 5yr (regular): 2.25% to 2.15% (Prime – .30) 5yr (high ratio): 1.95% to 1.85% (Prime – .60) At the height of the COVID crisis, banks hiked their variable rates to prime – 0%. At the time, we wrote that variable-rate discounts will improve significantly once again....

Coronavirus Mortgage Update – March 26

5:56 p.m. Update Payment Worries: 1 in 3 Canadians fear they’ll miss a rent or mortgage payment (Survey.) If you’re one of them, here’s an updated list of lender links for payment deferral info. Appraisal Stop-gap: More lenders are announcing that they will accept “Modified Full Appraisals.” That’s where appraisers do virtual inspections of the property with the homeowner’s help,...

The Door is Open to Rate Cuts, Says BoC

The popularity of fixed mortgage rates in 2019 was unmistakable. But the Bank of Canada may have moved the needle for variable rates with its comments Wednesday. Below are the week’s top 10 statements from the BoC, all of which will be of interest to any serious rate watcher. The below quotes come from Bank of Canada Governor Stephen Poloz...

New Mortgage Rate Insights From BMO

Rising rates and new mortgage regulations aren’t enough to scare nearly 1 in 4 Canadians. That’s how many plan to buy a home within the next year. This comes from a new BMO survey, which also found the national average price buyers expect to pay is about $474,000. That jumps to $580,000 in Toronto and $603,000 for Vancouver buyers. Most concerning...

Who Offers Fixed-Payment Variable Mortgages?

Variable rates can present a catch-22. On the one hand, variables are almost alwayscheaper than most fixed mortgages. And they also let you capitalize on falling interest rates. On the other hand, when rates start climbing, so do your interest costs. That risk keeps a lot of people from even thinking about floating their mortgage rate. But it doesn’t have...