Tag Archives: Rate Outlook

Fixed Mortgage Rate Forecast – November 2012

5 year fixed mortgage rates are tied directly to the government of Canada benchmark bond yields.  The last reported yield was at 1.29% on November 8th.  This is the rate of return mortgage lenders can expect to receive when they sell pools of mortgages on the open market.  This yield is 1.7% below the 5 year fixed mortgage rate of 2.99% that’s available in the marketplace.  The 1.7% spread delivers … Read More

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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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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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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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Fixed Mortgage Rate Forecast – August 2012

Over the past 30 days we’ve seen the 5 year Government of Canada benchmark bond yields edge up 0.20% to a 30 day high of 1.43% as of yesterday.  This bond yield represents the cost of funds for 5 year fixed mortgage rates and as such has squeezed the profit from mortgage lenders.  Although there haven’t been any Canadian mortgage rate increase announcements we have seen the evaporation of some … 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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The Mark Carney Fib

Mark Carney and the Bank of Canada released their monetary policy report Wednesday along with an opening statement.  Perhaps we are supposed to take comments to the press with a grain of salt or understand that the government is operating on their agenda, but it’s wrong for a person is a position of authority and trust to the Canadian people to mislead us – even if it’s for our own … Read More

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Bank of Canada Holds Mortgage Rates

The Bank of Canada announced yesterday that they will maintain the overnight rate at 1%.  This ultimately will keep variable mortgage rates where they are at least until the next meeting date, scheduled for September 5th.  This announcement was uniformly expected by economists and mortgage planners alike. In the announcement Mark Carney downgraded the Banks’ growth prediction for the Canadian economy down to 2.1% for 2012 and 2.3% for 2013.  … Read More

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Mortgage Rates New Normal

Here in Canada, the buzz is all about rising mortgage rates.  Interest rates and specifically mortgage rates have been at record lows for an extended period of time and the prevailing logic is what goes down, must come back up.  However as time goes on, we have to start questioning traditional economic logic.  Just because it’s always been that way doesn’t mean that interest rates have to go back up … Read More

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