Archive for the ‘Mortgage Rates’ Category

Canada Bubble Seen As IMF Risk With Record Low Rates: Mortgages

Share Jan. 17 (Bloomberg) — Kevin Lau, a Toronto-based technology consultant, says he can’t wait to take advantage of the lowest mortgage rates in Canadian history to buy a second condominium and rent his current home. Lau, 28, plans to get another mortgage and refinance his C$160,000 ($157,000) home loan after Bank of Montreal, Toronto- [...]

2011 RRSP Deadline

Share The deadline for making a 2011 RRSP contribution is February 29, 2012. Making that contribution can save you anywhere from hundreds in taxes to over $10,000 depending on your province and tax bracket. Plus, you’ll enjoy the tax-deferred long-term growth of that investment while it sits in your RRSP. The challenge for some, however, [...]

Fourth Quarter Earnings

Share The fourth quarter earnings season brought good tidings to certain banks, including TD and RBC who saw profits double. In the Big 6 banks’ lending segments, however, many continued to report declining loan margins as Canada’s low rate environment persists. Below are various mortgage tidbits that we pulled from the major banks’ Q4 reports: [...]

Bank of Canada Slashes Growth Prediction

Share Canada’s economic growth will decelerate sharply in the second quarter of the year, according to a new report by the Bank of Canada. The country’s central bank said it now expects Canada’s gross domestic product (GDP) to expand in the April-to-June period — but by less than half of the 4.2 per cent it [...]

International Financial Reporting Standards

Share IFRS. You’ll hear more about this acronym as time goes on. It stands for International Financial Reporting Standards and it’s basically a newly-adopted set of accounting rules. The relevance here is how IFRS will impact Canadian mortgage rates. The first effect of IFRS that we noticed was with Home Trust’s prime mortgage rates. Home’s [...]

Rising Bond Yields Pressuring Fixed Rates

Share The 5-year government yield (which leads 5-year fixed mortgage rates) pierced 2.80% today. It’s risen almost 35 basis points in two weeks. That’s squeezed gross lender margins on deeply-discounted five-year rates to near 1.00% (1.20% can be considered “normal”).  As a result, ultra-low fixed rates are in danger of ticking 10+ basis points higher, [...]

Rate Predictions

Share Mortgage shoppers crave certainty, so they continually question brokers or bankers about where interest rates are headed. If this is something you’re prone to doing, first ask yourself if your broker or banker can predict the next global catastrophe, war, financial crisis, or sovereign insolvency. If not, you may want to rethink your question. [...]

First National’s Option 60

Share Last week, First National rolled out a 3.79% 5-year fixed offer called “Option 60.” It’s a fairly decent rate for a nationally-available full-featured mortgage that includes a:   60-day rate hold [Most competing full-featured mortgages at this rate have only a 30- or 45-day hold.]   15% lump-sum prepayment privilege 15% payment increase option [...]

Buying a home is about to get tougher

Share The federal Conservative government is expected on Monday to introduce new rules aimed at toughening up mortgage lending in an effort to curb further growth in record household debt levels. The key change Finance Minister Jim Flaherty is likely to unveil is a cut in the maximum amortization period, to 30 years from 35 [...]

Lower Posted Rates – More Than Meets The Eye

Share Last November the banks decided not to raise their 5-year posted mortgage rates, despite raising their discounted rates. Their stated reasoning was to bring posted rates more in line with discounted rates. In that way, their posted rates would appear more competitive. As we wrote before, however, the decision had far greater implications than that. [...]