Tag Archives: Mortgage Rates

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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Mortgaging Your Boat

You dream about her.  Maybe you even have a picture of her posted on your dream board.  Now, stop lusting after her and go buy your new boat!  The problem with two-foot-itis is that you can’t quite afford your next boat.  Or can you?  Make sure you consider all your financing options before you settle for less than you deserve. Boat loan, line of credit or mortgage?  These are your … 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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Variable Mortgage Rate Outlook – May 2012

Variable rate mortgages continue to offer great value, especially to those who locked in a discount to prime of 0.75% or more.  With our current prime rate of 3.0% these mortgages are at least 1% lower than current 5 year fixed mortgages rates.  Those who are shopping for a mortgage rate today however, have to contend with variable rate mortgages with no discount at all.  These new variable rate mortgages … Read More

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Yoyo Mortgage Rate Predictions

There’s the long term mortgage rate outlook and then there’s short term yoyo economics.  The long term view is that Canadian mortgage rates will remain low for at least another year.  These predictions are widely held and based on the high currency, global economic uncertainty and high Canadian debt levels.  Then there’s a flurry of reactions to the latest job numbers, housing starts or whatever other tidbits Statistics Canada is … 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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Mortgage Rate vs. Mortgage Service

When shopping for a mortgage, the first thing borrowers looks for (and sometimes the only thing) is the best mortgage rate.  While mortgage rate is undeniably the single most important factor in choosing a mortgage, other factors could overwhelmingly make a low rate mortgage a bad choice.  Some of you may be thinking, “What other factors?” Other factors will rank in priority according to an individual’s circumstances, but they’ll affect … Read More

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