Category Archives: Blog

Can You Afford a Home?

The Minister of Finance is concerned that too many Canadians are buying a home even though they shouldn’t.  His concern is that unqualified homeowners will eventually default on their mortgages bringing down the market and the economy in an American style collapse. This is a valid concern and the message has made its way to the Canadian public.  A recent survey conducted by Maritz Research for CAAMP show that a … Read More

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BMO Pulls 2.99% Mortgage Rate

Bank of Montreal (BMO) will raise the rate on its widely publicized 2.99% 5 year fixed mortgage rate in a couple of days.  The “No Frills” mortgage has always carried restrictions including a “no-pay-out” clause, limited pre-payment options and a set expiry date.  The current expiry date is set for tomorrow March 28th, and the bank has made it clear that it will not extend the date. Although the mortgage … Read More

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Flaherty Doesn’t Make Cents

Jim Flaherty is defending his decision to interfere in the mortgage market on the basis that he is preventing Canadians from borrowing more than they can afford.  This is nonsense.  After tightening mortgage rules 4 times in the past 4 years and enhancing the powers of the Office of the Superintendent of Financial Institutions (OSFI) to oversee prudent lending practices, we now have extremely conservative lending practices.  Anybody that still … Read More

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Flaherty Tells Bank to Raise Mortgage Rate

Jim Flaherty had one of his officials call Manulife Bank to voice his displeasure over their latest mortgage rate drop.  As a result, Manulife reversed a published rate drop to 2.89% for their 5 year fixed rate mortgage.  This unprecedented government intervention into the free market is a scary turn of events that threatens the principals on which our Country was built. Anti trust laws prohibit collusion among businesses including … Read More

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Variable Mortgage Rate Forecast – March 2013

Variable mortgage rates will stay where they are well into the Spring and Summer markets.  The Bank of Canada’s next meeting date to review and adjust the overnight lending rate is April 17th when there is almost no chance of a rate change.  In fact, the prime lending rate is so well balanced right now that we are seeing some economists call for a rate drop.  Overall, the vast majority … Read More

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Fixed Mortgage Rate Forecast – March 2013

Bond yields have come down in March giving the banks room to maneuver in pursuing the Spring mortgage market. Record low mortgage rates are currently available and are expected to persist for at least the next 30 days.  Yields started the year in the mid 1.4% range and except for a brief run up to 1.53% have remained relatively flat.  In March the government of Canada benchmark 5 year bond … Read More

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Let the Mortgage Rate Wars Begin

The clear sign of a mortgage rate war is when Bank of Montreal (BMO) starts advertising a 2.99% 5 year fixed mortgage rate.  Although current bond yields don’t support such a low mortgage rate we are entering the critical spring season that can make or break a bank’s annual lending target. The tightened mortgage rules have done their job and pushed many potential buyers out of the market and scared … Read More

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