Tag Archives: Mortgage Rates

November Variable Mortgage Rate Forecast

The Bank of Canada’s last interest rate announcement was October 23rd and as expected there was no change in the overnight interest rate.  Variable mortgage rates are tied directly to the prime rate of interest which is in turn tied directly to the overnight interest rate.  No change in the overnight rate means no change to your variable rate mortgage. The Bank of Canada only meets 8 times per year … Read More

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Lopsided Mortgage Rate Specials

It’s counter intuitive, but a large downpayment on your house purchase might mean you’ll have to settle for a higher mortgage rate.  The concept isn’t new, but recent regulatory changes have made this proposition a reality in the mortgage market. Traditional thinking is that the greater the downpayment, the safer the mortgage, and the safer the mortgage the lower the mortgage rate.  The reason this isn’t the case is because … Read More

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3 Tips to Boost your Credit Score

Having a good credit score is an essential part of not just getting a good mortgage rate, but also for qualifying for a mortgage in the first place.  If your score falls below 600 then some immediate action is needed.  Here are some steps you can take to boost you numbers. Make payments every month While this may sound like a no brainer some people don’t think that missing a … Read More

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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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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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Where’s the Mortgage Rate War?

The summer of 2012 is delivering record low 5 year Government of Canada benchmark bond yields aka the cost of mortgage funds.  If the cost of providing a 5 year fixed mortgage rate keeps dropping you’d expect to see mortgage rates offered to customers dropping as well, but that hasn’t been the case.  In fact BMO Bank of Montreal, the instigator of the last mortgage rate war, is keeping their … Read More

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