Tag Archives: Variable Rates

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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Mark Carney Suggests Rate Hikes Looming

Bank of Canada Governor Mark Carney said again that the bank may have to raise interest rates to keep inflation on target.  This would mean in increase to variable rate mortgages.  He said it was not necessary to be more explicit about timing of a possible move but said that Canada was “well into an expansion”.  The timing and degree of any increase “will be weighed carefully against domestic and … Read More

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3 Steps to the Best Mortgage Rate at Renewal

You’ve been a loyal customer for 5 years and have made every payment on time.  So why is your bank offering you a higher mortgage rate than a new customer?  It’s an all too common story.  Most lenders have posted mortgage rates and discounted mortgage rates.  Typically renewal letters go out at posted mortgage rates which are about 2% higher than the discounted mortgage rates used to lure new mortgage … Read More

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What a 1% Mortgage Rate Hike Means to You

We’ve all been enjoying record low interest rates.  The low mortgage rates have enabled us to buy bigger homes or just pay less interest each month.  If you’re one of the many Canadians who’ve taken on a bigger mortgage then you may be concerned about rising rates.  And rise they will.  Current mortgage rates tied to the prime lending rate have been strategically held low to help stimulate the economy.  … Read More

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The Hidden Pitfall in March’s Major Empoyment Gains

Employment numbers increased dramatically with March cranking out 82,300 jobs, surpassing economists’ expectations 8 fold.  This surge of new jobs pushed down the unemployment rate to 7.2%, its lowest rate since the recession began over 3 years ago.  This is obviously good news for the economy and is another clear signpost to naysayers that Canada is not only out of its recession, but bouncing back better than expected. Any significant … Read More

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Variable Mortgage Rate Outlook – April 2012

The forecast for variable mortgage rates remains flat, just as it was last month, and the month before that.  Variable mortgage rates float with a lender’s prime rate of interest, which is tied directly to the overnight rate set by the Bank of Canada.  In a speech today in Waterloo, Mark Carney, the Governor of the Bank of Canada said “All indicators point to inflation expectations remaining well anchored”.  With … Read More

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Variable Mortgage Rate Outlook – Feb 2012

The outlook for variable rate mortgages is flat.  Steady as she goes for at least the remainder of 2012 and likely well into 2013.  This is great news for borrowers, bad news for investors and confusing news for legislators and lenders.  So who controls variable mortgage rates in Canada?  This is a great question and the answer is more convoluted than you might think.  First, we must understand that variable … Read More

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