Mortgage Rates

Ever since the US Fed hinted that they are expecting to raise their rate sooner than expected, there has been increasing speculation that the Bank of Canada would increase their rate on their next scheduled rate announcement which came on January 26 th . In fact, economists were predicting a 70% chance of a rate increase on this date. For those who follow my blogs regularly, you’ll know that I’ve been skeptical of any rate increases this early, and that I would have been surp

Upward pressure on fixed mortgage rates builds as bond yields continue to rise. They have been trending upward since the US Federal Reserve announced that they are expecting to raise rates by as much as three times in 2022, which was back in mid-December. Many economists are now predicting this will increase to four times.  This pushed bond yields higher, however, not enough to result in any upward fixed rate movement. But in early January, the US Fed hinted that they may nee

In the last scheduled rate announcement from the Bank of Canada on December 8 th , they held true to their projection on holding their overnight rate steady until sometime in the middle two quarters of 2022.  The US Federal Reserve has since hinted that they may have to raise their rate sooner than anticipated due to increasing inflationary concerns and a tight job market. As the Bank of Canada will generally follow the US Fed’s lead, it’s possible that they could also make a

It’s hard to believe that it’s 2022 already. Such a futuristic sounding number, yet still no flying cars. What gives?  For those who have been following my blog over the years, you may recall that I always start off my first blog of the year with the same joke. Yes, the same one. It just seems fitting, and it makes me smile. Hopefully it has the same effect on you! Why Mortgage Rates Increased In 2021 At the start of 2021, we saw the lowest 5 year fixed rate in history at 1.3

If there is anything positive to come out of COVID, it’s the record low mortgage rates that it created. As the pandemic won’t last forever, neither will the rates, so rising rates shouldn’t come as a shock to any of us. As the economy recovers, we can expect rates to revert back to where they were before the whole thing started. How Today’s Mortgage Rates Compare With Pre-COVID Rates Even though fixed mortgage rates have increased by as much as 0.70% since the summer, they ha

With all the talk about the Bank of Canada increasing their rate in 2022, I’m getting more and more questions regarding converting a current  variable rate mortgage  into a fixed.   But is this a good idea?   For those who  follow my blogs  regularly, you’ll know that I’m always saying that there is no one size fits all mortgage advice, and everyone’s situation can be a bit different. This is stands true here as well.   As with any mortgage related decision, it comes down to

In their final scheduled rate announcement for 2021, the Bank of Canada confirmed this morning that they will be holding their overnight rate at 0.25%. This is the rate that mortgage lenders use to set their prime rate, which is applicable to variable rate mortgages . They do not directly affect fixed mortgage rates, however they can indirectly affect them on occasion. It’s no surprise that they’re holding their rate steady, which is exactly what was expected. It’s also no b

Finding the ideal home can be challenging, if not impossible, especially in a hot real estate market. You might find a home where you love the layout, but the kitchen and bathrooms haven’t been updated for fifty years. Sure, that psychedelic wallpaper, and vintage cabinetry might have been quite the rage in the 70’s, but doesn’t quite cut it in modern times. All it needs is a few renovations, and your perfect home will then be complete. The only problem is how you’re going to

Anyone following the mortgage market is aware that fixed mortgage rates have been increasing since early October. While they have stabilized for now, it’s possible that we could see further increases in coming months. As mortgage payments will increase with rates, this will also reduce your maximum qualified mortgage amount, right? Logically, this makes sense, but a higher mortgage payment doesn’t necessarily mean that you’ll qualify for a lower amount. That’s because your q

When purchasing a resale property, the closing date is a straightforward concept. It’s simply the date that the ownership is transferred from the seller to the buyer. Where it becomes more complex is when purchasing a pre-construction condo, as there is not just one closing date, but two. The first is your occupancy closing. The second is your final closing date. Occupancy Closing Date This is the date you get the keys and take possession of the unit, however ownership is not

5 year fixed mortgage rates have been on the rise since late September, and have now climbed up over 2%. Should this surprise us? The fact that fixed mortgage rates have now moved up over 2% is not surprising. What is surprising is how quickly it has happened.   Why Are Fixed Mortgage Rates Increasing? In late September, the US Federal Reserve announced that they would start tapering their quantitative easing programs earlier than expected. The market then reacted and bond yi

In this morning’s scheduled rate announcement from the Bank of Canada, they confirmed that they will be maintaining their overnight rate. This is the rate that mortgage lenders use to set their prime rate. While their rate remains unchanged as expected, they announced that they are not just winding down their quantitative easing program, they are flat out ending it. This may lead to the Bank of Canada increasing their rate sooner than originally expected. They had been holdin

Bond yields continue to trend upward, which places more upward pressure on fixed mortgage rates . Some mortgage lenders have increased their rates over the last few days, with more expected to increase over the next week. This is in addition to rate increases we saw over the last couple of weeks. As long as bond yields continue to trend upwards, so will fixed mortgage rates. There are still fixed mortgage rates as low as 1.94% for insured mortgages, however it’s just a matte

Upward pressure on fixed mortgage rates remains, and if bond yields continue with their upward trend, then fixed rates will continue to rise. The regular readers of my blog will know that fixed mortgage rates are largely influenced by bond yields. When the yields begin to trend upwards, this in turn will place upward pressure on fixed mortgage rates. It’s always important to mention that bond yields do not have any direct impact on variable rate mortgages , just as the Bank

E ven with recent increases to fixed mortgage rates , they are still among the lowest in history. Rates this low are not typical, and not close to anything we would expect to see in a healthy economy. Remember, It took a pandemic to bring them down to where they are today. While fixed mortgage rates seemed to have stabilized for now, we can expect them to increase further over the next several years. That is certain. But what exactly do higher mortgage rates mean for you? On

Fixed mortgage rates have been trickling downward since the spring, however this trend has now reversed sharply. Fixed mortgage rates are largely influenced by bond yields, which have been steadily increasing since the beginning of September. In the past week alone, they spiked from 0.855 to 1.112, representing an increase of roughly 30%. Pretty significant. The last time the bond yields were this high was late February 2020. The lowest 5 year fixed rate at that time was 2.49

Income confirmation is a crucial part of the mortgage approval process as it assures lenders that the borrower has the capacity to repay the loan. It doesn’t matter how large your down payment is, or how much equity you have in your property. Mortgage lenders are required to confirm that the borrower’s debt to income ratio is within the maximum allowable limits. I know it may seem like common sense that an excessively large down payment, or equity position in an existing prop

One of the most commonly misunderstood terms used in the mortgage industry is biweekly payments. The confusion comes from there being two options. Biweekly and accelerated biweekly. When most people use the term biweekly, they are referring to accelerated biweekly. However, many may not even reailze that there is also a non-accelerated version.  Which leads us to answer the title of this blog. What’s the difference between a biweekly and an accelerated biweekly payment? Let’s

The Bank of Canada continued their predictable and rather boring trend of uneventful rate announcements this morning, confirming that there will be no change to their overnight rate. Even though predictable, it’s good news to find the rate unchanged given that the next move from the BOC will be upward. The overnight rate is important to those with variable rate mortgages and HELOCs (Home Equity Lines of Credit) , as it’s what mortgage lenders use to set their prime rate.  Wh

One of the most common questions I get is what can be expected from mortgage rates moving forward. We’re now enjoying some of the lowest mortgage rates in history, but how long will this last? Fixed mortgage rates have been relatively stable for much of 2021. The exception is late February, early March when we saw fixed rates increase by as much as 0.40% within a few short weeks. Even with that increase, fixed mortgage rates for insured and insurable mortgages remained unde