Category Archives: Blog

Carney Confirms Continued Low Rates – Finally!

On Tuesday, the Bank of Canada held the overnight rate at 1.0% for the 27th consecutive month.  This came as no surprise to anybody, but what was a surprise and equally refreshing was Mark Carney’s confirmation that interest rates would remain low well into 2014. For the past 27 months the Bank of Canada didn’t touch the overnight rate, but kept threatening to raise rates soon.  As the Dread Pirate … Read More

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Canada Guaranty Buys Market Share

Canada Guaranty, the mortgage insurer you never heard of, is gaining momentum in the mortgage industry.  What’s interesting is that they are actually paying the banks to send them business.  According to Royal Bank’s own disclosure document, they receive $140 for every mortgage closed and insured with Canada Guaranty.  As long as this fact is disclosed and the mortgage insurance is equal to that offered by CMHC and Genworth then … Read More

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The New ING is Emerging

ING Direct announced today that it will no longer be accepting mortgage applications from mortgage brokers.  This change is a direct result of Scotiabank’s 2012 acquisition of ING Direct and is spelled out in a letter to mortgage brokers “Following the recent acquisition of ING Direct by Scotiabank we have completed a thorough evaluation of our mortgage business and have come to the decision that ING Direct will concentrate its … Read More

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Variable Mortgage Rate Forecast – January 2013

Variable mortgage rates, unlike their fixed mortgage rate counterpart, are under the control of the federal government via the Bank of Canada.  The bank of Canada recently published the following 2013 schedule of meeting dates to review the overnight rate. January 23 March 6 April 17 May 29 July 17 September 4 October 23 December 4 Given the state of both the domestic and foreign economies its unlikely that there … Read More

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Fixed Mortgage Rate Forecast – January 2013

Fixed mortgage rates are based on 5 year bond yields and as of late bond yields have been spiking.  The main reason for the latest spike is the fact that the US avoided falling off its fiscal cliff.  Prior to the Jan 1 deadline traders were shifting funds to the safe haven of bonds in order to avoid riskier investments.  Now that the immediate economic disaster has been avoided these … Read More

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