Tag Archives: Mortgage

Maxed Out and Ready to Refinance

The average non-mortgage debt held by Canadians has climbed by 3.47% to $27,131 over last year.  One reason behind the increase is the new mortgage rule limiting the amount you can refinance.  Canadians who have maintained their spending patterns can no longer use the equity in their house to wipe the slate clean.  Instead they are left with a mountain of high interest debt. While the new rule makes sense … Read More

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BMO Bumps 5 Year Mortgage Rate

Bank of Montreal (BMO) has bumped their “no frills” 5 year fixed mortgage rate by 20 bps to 3.79% effective today.  The move demonstrates the roller-coaster ride clients can expect if they choose the “no frills” option.  Less than a year ago, BMO made headlines by promoting this product at 2.99%.  The move was so bold that it warranted a phone call from the Department of Finance who was concerned … Read More

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Proud to Be Canadian!

I’m proud to be Canadian but even prouder to be a Canadian mortgage broker.  Our great country fared better then any other industrialized nation through the great real estate recession of 2008 that continues to linger today.  Foreign mortgage financing practices caused the massive economic downturn, but Canadian mortgage financing practices have kept our country stronger than others. What makes our mortgage system so strong is not individual rules, regulations … Read More

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Spike in Mortgage Rates Temporary

The recent spike in fixed mortgage rates is a direct result of an incredibly sharp rises in bond yields.  I say incredibly because the market grossly over-reacted to Ben Bernake’s comment that the Fed will eventually begin to taper monetary stimulus.  Following this over-reaction, you can expect to see bond yields ease back nearer to their previous lows. Kent Engelke, chief economic strategist at Capitol Securities Management Inc., confirms that … Read More

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Bond Yields Hit 1 Year High

5 year Government of Canada benchmark bond yields were 1.30% just a year ago today and after a year of relatively minor changes are just now spiking at 1.81%.  This 0.51% increase is putting upward pressure on 5 year mortgage rates suggesting the new 5 year mortgage rate should be 3.39% up from 2.89% just a few weeks ago. Although nobody wants to pay an extra .50% on their mortgage … Read More

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Mortgage Rates Are Going Up

Last week’s 0.25% increase in 5 year fixed mortgage rates is being followed up with another 0.15% increase effective tomorrow.  You may not see a change to any of the banks’ posted mortgage rates, but the best discounted mortgage rates will be 0.40% higher than they were 2 weeks ago. The sudden increase in fixed mortgage rates is a direct result of Ben Bernanke’s policy announcement south of the boarder.  … Read More

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RBC Raises Mortgage Rates

Rising bond yields have put upward pressure on fixed mortgage rates for the past few weeks and RBC was this first to flinch.  As of today RBC increased its 1 year mortgage rate by .14% to 3.14%; it’s 2 year mortgage rate by .1% to 3.14%; it’s 3 year mortgage rate by .1% to 3.65%; it’s 4 year mortgage rate by 0.1% to 3.09%; and most notably it’s 5 year … Read More

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CMHC’s Volume Cut in Half

Stricter mortgage rules on CMHC insured mortgages have had a profound impact on the housing market as well as the insurer itself.  CMHC reports that in the first quarter of this year the number of housing units insured dropped to 52,078 from 114,045 over the same period last year.  This translates to a drop of underwritten insurance to $8.2 billion down by 56.8% from $19 billion last year. The good … Read More

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Variable Mortgage Rate Forecast – May 2013

Mark Carney’s last rate announcement came and went without much fanfare.  Variable mortgage rates will remain the same at least until the next announcement date on July 17th, 2013 and likely well into the latter half of 2014. The Bank of Canada’s language hasn’t changed much from its previous interest rate announcement stating that low rates “will likely remain appropriate for a period of time, after which some modest withdrawal … Read More

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Save $12,000 on Your Next Mortgage

Mortgage penalties are a necessary evil and should be closely scrutinized when negotiating your next mortgage.  Choosing a mortgage solely based on the interest rate could cost you over $12,000 in future penalties overshadowing any interest savings. Forced to comply with new federal regulations, mortgage companies must now fully disclose their penalty formulas and must provide an on-line penalty calculator. It would be worth your while to submit your mortgage … Read More

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