Category Archives: Mortgage Rates

Credit Score Determines Mortgage Rate

Your credit score is an essential component in qualifying for a mortgage and can determine your mortgage rate.   Main stream mortgage lenders are looking for a minimum credit score of 600.  Although an even higher score may allow you to qualify for a larger mortgage, it won’t get you a better mortgage rate. A score lower than 600 however will get you a significantly higher mortgage rate. Not only … Read More

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BMO’s 2.99% Mortgage Rate Eliminates another “Frill”

It came back with a twist.  The BMO 5 year fixed 2.99% no frills mortgage rate came back on the weekend, but was only available to on-line customers.  It initially caused quite a stir with the minister of finance because of concerns that it will lead to more consumer debt.  BMO’s retort was that their no-frills mortgage limits the amortization to 25 years so borrowers must pay-off their mortgage faster.  … Read More

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Variable Mortgage Rate Forecast – October 2012

Variable mortgage rates are dependent on bank prime lending rates which are dependent on the Bank of Canada interest rate.  The Bank of Canada has 2 scheduled interest rate announcement dates remaining for 2012; October 23rd and December 4th. The current interest rate has remained unchanged for the past two years, the longest period of static interest rates since the mid 1950’s.  The chance that this streak will break in … Read More

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Fixed Mortgage Rate Forecast – October 2012

The fixed mortgage rate forecast is beginning to sound like a broken record as we keep repeating the same things over and over again.  5 year fixed mortgage rates are tied directly to the 5 year government of Canada benchmark bond yield which doesn’t look like it’ll be making any significant changes in the months ahead.  This 5 year benchmark bond yield has mostly been bouncing between 1.2% to 1.6% … Read More

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Strong Loonie Keeps Mortgage Rates Low

The Canadian dollar rallied to a 13 month high against the US greenback on news that the Federal Reserve plans to purchase bonds.  The US central bank indicated that it would maintain interest rates near 0.0% until 2015 and begin buying mortgage securities to fuel economic growth.  That announcement spurred investors to dump low yielding US assets in favour of more lucrative Canadian investments.  One Canadian dollar buys $1.03638 US. … Read More

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Hidden Mortgage Fees

  If you’re like most borrowers you just want the best mortgage rate.  After all, aren’t the other terms the same?  Wrong. Banks and other mortgage lenders are businesses looking to maximize their profits and although there are regulations on stating fixed mortgage rates, the other terms are fair game and buyer beware. One example of a hidden fee is the reinvestment fee. This is similar to a restocking fee … Read More

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BOC Maintains Low Mortgage Rates

The Bank of Canada announced yesterday that it’s keeping its target for the overnight rate at 1% which will in turn maintain the variable mortgage prime rate at 3.0%.   This announcement comes with no surprise and was expected by every mainstream economist weighing in on the issue. The much anticipated upward pressure on interest rates has not materialized and is no longer on the radar.  Recent revelations of economic slowdowns … Read More

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Scotiabank Buys ING Direct

After a short time on the auction block ING Direct has been gobbled up by Scotiabank for a reported $3.1 Billion.  It’s the largest transaction in Scotiabank’s 180 year history.  Although many of Canada’s big banks were interested in the transaction, Scotiabank was the hungriest to acquire its $30 billion of deposits.  On the heels of the announcement Scotiabank published a high profile letter reassuring ING Direct customers that it … Read More

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Banks Raise Mortgage Rates

TD Canada Trust announced today that its raising interest rates on its 3 and 5 year fixed term mortgages.  This announcement comes on the heels of a similar RBC announcement earlier this week.  RBC is increasing its 3 and 5 year fixed mortgage rates by 0.20% as well as its deep discounted 5 year fixed mortgage rate from 3.49% to 3.69%.  TD made similar changes to it’s 3 year fixed … Read More

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Variable Mortgage Rate Forecast – August 2012

The Bank of Canada (the “Bank”) sets the overnight lending rate which directly impacts the mortgage prime rate.  Although the Bank has a broader agenda than just controlling the mortgage prime rate, this motive has been in the spotlight due to the Bank’s desire to deleverage Canadian borrowers.  Despite some upward rate pressure to cool the housing market there has been no change to the prime mortgage rate all year.  … Read More

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