Category Archives: Mortgage Rates

TD Understands Ottawa’s Position – Give Me A Break!

Ed Clark, the CEO of Canada’s second largest bank supports Jim Flaherty’s recent move to prevent banks from competing on low mortgage rates.  In a statement after yesterday’s annual shareholder meeting Mr. Clark remarked “I think we understand his concern, we’ve been an advocate all along”. In March Mr. Flaherty took the controversial step of contacting 2 of Canada’s banks, warning them against offering low mortgage rates.  Mr. Flaherty was … 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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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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