Category Archives: Blog

Spike in Mortgage Rates Temporary

The recent spike in fixed mortgage rates is a direct result of an incredibly sharp rises in bond yields.  I say incredibly because the market grossly over-reacted to Ben Bernake’s comment that the Fed will eventually begin to taper monetary stimulus.  Following this over-reaction, you can expect to see bond yields ease back nearer to their previous lows. Kent Engelke, chief economic strategist at Capitol Securities Management Inc., confirms that … Read More

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Bond Yields Hit 1 Year High

5 year Government of Canada benchmark bond yields were 1.30% just a year ago today and after a year of relatively minor changes are just now spiking at 1.81%.  This 0.51% increase is putting upward pressure on 5 year mortgage rates suggesting the new 5 year mortgage rate should be 3.39% up from 2.89% just a few weeks ago. Although nobody wants to pay an extra .50% on their mortgage … Read More

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Mortgage Rates Are Going Up

Last week’s 0.25% increase in 5 year fixed mortgage rates is being followed up with another 0.15% increase effective tomorrow.  You may not see a change to any of the banks’ posted mortgage rates, but the best discounted mortgage rates will be 0.40% higher than they were 2 weeks ago. The sudden increase in fixed mortgage rates is a direct result of Ben Bernanke’s policy announcement south of the boarder.  … Read More

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The Rich are Getting Richer

The rich are getting richer according to the World Wealth Report, a study co-authored by RBC Wealth Management and Capgemini.  The number of Canadians with investable assets of $1 million or more grew by 6.5% to a record of 298,000 Canadians.  Even more shocking is that the really rich, the number of Canadians with investable assets of $30 million or more, grew by 11% to a record 4,500 Canadians. Now … Read More

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Do You Qualify for the Average Home?

You need a household income of $77,700 to buy the average Canadian home.  Of course there is no average city so you’ll need to earn more or less income depending on where you live.  Here’s a chart released by the Royal Bank of Canada (RBC) outlining the minimum income needed to qualify for the average house price in select Canadian cities. City Average Q1 Price Qualifying Gross Income Canada $366,500 … Read More

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RBC Raises Mortgage Rates

Rising bond yields have put upward pressure on fixed mortgage rates for the past few weeks and RBC was this first to flinch.  As of today RBC increased its 1 year mortgage rate by .14% to 3.14%; it’s 2 year mortgage rate by .1% to 3.14%; it’s 3 year mortgage rate by .1% to 3.65%; it’s 4 year mortgage rate by 0.1% to 3.09%; and most notably it’s 5 year … Read More

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Mortgage Rates Keep Prices High

After a period of steep year-over-year sales declines, the number of homes changing hands is back on a steady course.  “Last year’s deep downturn in Canadian home sales appears to be fading” according to Sal Guatieri, Bank of Montreal economist.  The tighter mortgage rules clearly had an impact on the number of transactions, knocking out many potential first time buyers, but it didn’t impact home prices like the Department of … Read More

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