Category Archives: Blog

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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Meditate Your Mortgage Away

I bet you never thought you’d see meditate and mortgage in the same sentence together.  Mortgages are serious financial vehicles designed to help Canadians achieve home ownership sooner while meditation is reserved for crossed legged guru’s sitting on Tibetan mountain tops.  Not!  Meditation has become a mainstream method for Canadians of all religious backgrounds to unwind, solve inner-conflicts and achieve a greater state of happiness. The key to a successful … Read More

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Mortgaging Your Next Cottage

Cottage season is in full bloom or Cabin season if you’re from the West.  Now’s the time to enjoy the lazy hazy days of summer at your summer retreat before the season slips away.  Although it’s just started, the hot summer weather typically only lasts a couple months here in the great white north.  Of course now is also the time to be looking to upgrade your cottage or purchase … Read More

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Hot Summer Mortgage Rates

The summer of 2012 is shaping up to be one of the hottest on record, and I’m not just talking about the weather.  Record low mortgage rates continue across the country make this the ideal time to buy a home or refinance your existing mortgage.  And you don’t need to worry about over-extending yourself; the government is making sure nobody does. Homeowners can lock in now with a 5 year … Read More

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Higher Mortgage Rates for Rentals

Buying a rental property may not be as good an investment as you think.  When calculating the benefits of owning a rental property many Canadians will assume that the mortgage financing is the same as if you were buying a residence.  This is not the case.  Mortgages on rentals require bigger downpayments, higher incomes and they often come with a higher mortgage rate. It wasn’t that long ago that you … Read More

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Home Prices Hit Ceiling – For Now

You know we’ve hit the ceiling when one of Canada’s leading real estate companies becomes pessimistic on home value appreciation.  Phil Soper, president and CEO of Royal LePage Real Estate Services is concerned over the recent mortgage rule changes.  “The most recent set of mortgage changes, the fourth in four years, is also the most aggressive.  The cumulative impact of these new regulations has created a significantly higher hurdle for … Read More

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15 Years to Mortgage Freedom

On average Canadians have 15 years left to pay off their mortgage.  This is the findings of a survey released yesterday, conducted by Leger Marketing, for BMO Bank of Montreal.  It’s difficult to distil any meaning from an average of the entire Canadian population, but thankfully the survey breaks down its findings by province and by 5 year amortization increments.  Here are a summary of the results. Years Left on                                                   … Read More

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Fixed Mortgage Rate Forecast – July 2012

Fixed mortgage rates are based on government benchmark bonds yields.  These bond yields are essentially the cost of funds for mortgage lenders who then factor in their operating costs and profit margins before establishing their 5 year fixed mortgage rates.  These days the premium over the bond yield hovers between 1.85% and 2.10%. 5 year benchmark bond yields continue to bounce around record lows in the 1.25% range.  Over the … Read More

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