Tag Archives: Fixed Mortgage Rates

Mortgage Rates Not Going Anywhere

The federal government along with the Canadian Central Bank is growing increasingly concerned with our low interest rate environment.  Traditional thinking stipulates that these low rates are un-natural and in time, when the global economy rights itself, interest rates will rise to 6%-7% back to their natural norm.  This is a reasonable expectation although as time goes on the strongest argument in favor of the 6.5% natural interest rate theory … Read More

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CMHC Releases Canadian Housing Market Outlook

Canada Mortgage and Housing Corporation (CMHC) released their Second Quarter 2012 Canadian Housing Market Outlook on Thursday.  The Canadian housing market is expected to remain strong over the remainder of 2012 and for all of 2013.  This, in a nutshell, is the CMHC’s mid-term forecast for the housing market.  Although there will always be pockets that stray from the norm, it’s largely expected that we’ll have a balanced market with … Read More

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Fixed Mortgage Rate Forecast – June 2012

Fixed mortgage rates are linked directly the rates offered by Canadian 5 year government bonds.  These bonds represent the cost of funds for fixed rate mortgage lenders.  Already near all-time lows these bond yields took a nosedive last week.  This swansong is a direct result of last week’s flow of disappointing economic news from around the word.  Abysmal job numbers from the US, a slowdown in China, and a European … Read More

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How Low Can Mortgage Rates Go?

5 year fixed mortgage rates are once again in record low territory.  Does this mean that we’re at the bottom of the market and that there’s nowhere to go but up?  Apparently not.  5 year fixed mortgage rates are typically set 1.50% higher than the mortgage lender’s cost of funds.  They need the 1.50% margin to cover their operating costs and earn some profit.  Theoretically then the lowest 5 year … Read More

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Stop The Mortgage Rate Rhetoric

For well over a year now Jim Flaherty and Mark Carney have been singing to the same tune.  Mortgage rates will be rising and homeowners need to prepare themselves for increased payments.  Flaherty, Canada’s federal finance minister has recently tightened mortgage rules 3 times and has added an artificially high qualifying mortgage rate for anyone interested in a variable mortgage rate.  Carney, governor of the bank of Canada (BOC), has … Read More

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Record Low Mortgage Rates

To the Canadian public mortgage rates hit their all-time low earlier this year when BMO announced their 2.99% 5 year Low Rate Mortgage.  The public could hardly not notice.  It’s not every day that a bank treats a mortgage rate change like a product release.  The strategy worked brilliantly and word spread like wildfire.  Industry insiders, meanwhile, rolled their eyes at the offer. The 5 year 2.99% mortgage rate came … Read More

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BMO’s 2.99% Mortgage Rate “Banks” Profits

Bank of Montreal (BMO) was the first of the major banks to release second quarter earnings.  The 4th largest Canadian bank had an impressive 27% increase in net income for the quarter.  However when you dig into the numbers, cost cutting was a major contributor and profit margins were notably lower.  One of the reasons cited for the lower margins was the deep discounted 5 year fixed mortgage rate at … Read More

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RBC Cuts Theoretical Mortgage Rate

The Royal Bank of Canada announced yesterday that it’s lowering its 5 year fixed mortgage rate by 0.10 effective Thursday May 24th.  The new mortgage rate is, get ready for it, 5.34%!  I find it hard to believe that there are people out there who still actually accept bank posted mortgage rates.  I guess they’re the same people who pay sticker price at the car dealership.  The RBC announced lower … Read More

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Fixed Mortgage Rate Outlook – May 2012

As anticipated, the 5 year fixed mortgage rate has bounced around over the past month with little net movement.  Best discounted mortgage rates have recently returned to the 3.29% level after some modest 0.10% to 0.20% increases. These fluctuations are a direct result of pricing changes to 5 year Canadian bonds.  Government bond yields have recently climbed on Canada’s growth prospects relative to other Group of Seven countries.  The countries … Read More

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5 Year Fixed Mortgage Rates vs. 10 Year Fixed Mortgage Rates

With fixed rate mortgages at record lows and the constant threat of a rising variable mortgage rates, fixed rates are gaining in popularity.  A few short years ago just over 50% of new borrowers were selecting fixed rate mortgages; today that number has dropped to more than 85%.  And now with some very attractive 10 year mortgage rate offers you have to ask yourself, “is now the time to lock … Read More

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