Category Archives: Blog

Variable Mortgage Rate Forecast – February 2013

Variable mortgage rates are tied to your banks prime lending rate which is in turn tied to the Bank of Canada’s overnight rate. Now that Mark Carney has pledged to not raise the overnight rate for at least a year it’s made my job of rate forecasting considerably easier. Variable mortgage rates aren’t going up! Having said that, economic conditions can change and I will continue to check in on … Read More

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Bank of Canada Finally Admits Rates to Remain Low

In a speech at the Richard Ivey School of Business, Mark Carney admitted that the benchmark interest rate would remain at its current low of 1% into 2014.  While it’s been painfully obvious to industry players that the Bank of Canada (BOC) could not raise interest rates due to the serious negative consequences, Mr. Carney and the BOC had been threatening rate hikes for most of 2012.  This empty threat … Read More

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Fixed Mortgage Rate Forecast – February 2013

The Government of Canada benchmark 5 year bond is currently yielding 1.40%.  It’s current position is in the middle of the previous 12 month range where the high hit 1.74% and low hit 1.06%.  Its future path is expected to stay within the same range over the next several months.  While bond yields represent mortgage lending costs it’s not the only factor determining 5 year fixed mortgage rates. Competitive pressures … Read More

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S&P Ratings Questionable

S&P has made questionable ratings over the past few years, putting into doubt their value and purpose.  A recent downgrade of Canada’s big banks is the most recent example of how out of touch they can be with their ratings system.  It’s 2011 downgrade of the US government was farcical at best and interpreted by many as more of a political statement than a risk rating. It seems that the … Read More

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Pennies Stop Shipping Today

As of today the Royal Canadian Mint stopped shipping pennies to retail stores and banks.  The death of the penny was announced nearly a year ago in the federal budget.  The Mint actually stopped producing the penny last May, but it wasn’t until today that the supply actually stopped. The federal government has given retailers flexibility in their rounding calculations, but has provided guidelines that the majority of retailers will … Read More

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