Mortgage Rates

Last week's inflation update from the U.S. was a bit of a letdown, casting a shadow over the prospect of a rate cut before the summer's heat sets in. For those cuts to materialize, we're banking on a steady decline in inflation rates. As the Canadian economy is closely tied to our friends to the south, negative news from their end tends to echo through our halls as well. Economists on this side of the border were anxiously awaiting the Canadian inflation report which was rel

Before we can expect to see the ever so desired rate cuts to become realty, inflation has to fall. It was always expected that there would be some bumps along the way, and yesterday, we hit yet another one. The inflation report form the US was released which was up 0.30% in January, higher than what economists were expecting. You don’t need me to tell you that this is the opposite direction of what everyone was hoping to see.   Does this mean that the expected cuts from the B

Given the significant increases we have seen to prime rate over the last 23 months, the term 'variable rate mortgage' has been the source of pain for many households. At the start of 2022, it was expected that the prime rate would increase by no more than 1.00% to 1.25%. Instead, we saw a staggering increase of 4.00% by the end of the year, followed by another 0.75% in 2023.   Forecasts can and do change, sometimes for the better and sometimes for the worse. In early 2022, it

The Bank of Canada is expected to start cutting their rate as soon as April 10th of this year. While it’s not certain, it sounds promising. The big six banks are all forecasting cuts between 1.00% and 1.75% by the end of this year, followed by further cuts in 2025.   When it becomes more apparent that the cuts will be imminent, fixed mortgage rates will drop in anticipation. They do not need to wait for the Bank of Canada to cut their rate.   For this reason, more are starti

As expected, the Bank of Canada maintained their overnight rate in their first scheduled rate announcement of the year. It’s now been six months since the last hike. The BoC remains concerned about inflation risks, however, they are still expecting to reach their inflation goal of 2.00% at some point in 2025. They have stated on numerous occasions that they are not prepared to lower their rate until they are convinced that they’ll achieve this goal.  Timeline for Expected Rat

Inflation has crept up again, marking an increase for the second consecutive month. Obviously, this is not what anyone wanted to see, particularly, the Bank of Canada. It was disappointing news; however, it was never expected for inflation to fall on a seamless downward path. It was always understood that there would be some bumps and bruises along the way. But that doesn’t make the uptick any less disappointing, and has definitely captured the attention of the economists, th

If you've been keeping even a casual eye on the mortgage market, you're likely aware of the chatter about potential rate drops to come at some point this year. Naturally, we all aim for the best deal, seeking to lock in the lowest possible rate. In a market where rates are expected to fall, it's common for people to delay their decision to ensure they are snagging the lowest mortgage rate possible. This cautious approach has led many to become vigilant market watchers, patien

Happy New Year, and welcome to 2024!   Mortgage rates in the last few years have been a roller coaster of unpredictability, full of twists and turns. Predicting mortgage rates has become analogous to a strategic game, challenging even the most seasoned of economists. But if things progress as expected, then we can expect 2024 to be a year filled with declining mortgage rates… and that will truly be something worth celebrating!   However, the track record of economists’ predic

I don’t think anyone could wish for a better holiday gift than falling mortgage rates!  Although your kids may disagree. From October 2021 until to October 2023, we saw perhaps the largest displays of rate increasing madness we’ve ever seen. The lowest 5 year fixed rate for an insured mortgage shot from 1.59%, all the way up to 5.59% at its peak in late October this year.   But what goes up must come down!    So, when the big man comes down the chimney this Monday, December 2

Facing a mortgage renewal at higher rates? You’re not alone. While fixed mortgage rates have come down by as much as 2.00% off their peak, anyone with a fixed rate coming up for renewal won’t just have to accept a higher rate… but the higher payment that comes with it.   Given that the payment increase can be substantial, it goes without saying that this is quite discomforting to many.    However, it may be possible that you could carry on with a similar payment to what you’r

Today was the Bank of Canada’s final rate announcement of 2023. As expected, they left it unchanged. The pause has now stretched across five consecutive months.   With inflation continuing to ease, we get closer to that magical day we have all been waiting for. The day when the rate cuts begin!    Many believe that a flat Bank of Canada rates will mean that fixed rates are also flat. But fixed rates have their own agenda… no waiting required. While the BoC rate is flatlining…

Fixed mortgage rates have been steadily increasing for months now, causing concern for potential homebuyers and those with mortgages approaching their renewal date.   However, there is finally some light at the end of the tunnel.   There has been downward pressure on fixed mortgage rates which has been continuing for almost six weeks!  The last time we saw a run of downward pressure was back in March, which resulted in fixed rates dropping by roughly 0.50%. But that was due

Whether you're buying a new home, refinancing your current mortgage, or have an upcoming mortgage renewal, your ultimate objective remains the same: securing the lowest possible mortgage rate . Locking in a rate is important as it protects you against rising rates. Once your application has been submitted to the lender for approval, that rate is now set. Even if rates increase one minute later, you were able to slide in under the wire and secure the lower rate ahead of the i

Trying to time your entry into the homebuying market is a bit like trying to hop onto a merry-go-round that’s spinning just a tad too fast. You want to get on without getting dizzy, or worse, flung into a nearby bush. With mortgage rates soaring, it’s no surprise that many would-be buyers are hanging back, waiting for that merry-go-round to slow down just enough to make their jump into the market less of a leap and more of a confident stride.   This hesitancy has led to a not

For the last six months, we’ve been watching fixed mortgage rates climb like a stubborn cat up a tree. Just when was looking like this would never end, we’re now starting to see some relief.  As of late last week, we’ve seen multiple lenders dropping their fixed rates by as much as 0.25%. But is this the start of the big mortgage rate drop we have all been waiting for? Or is this just a temporary blip as we saw back in March?  Is this the Big Mortgage Rate Drop? Bond yields h

With all the writing I’ve done on rising mortgage rates this year, I was starting to feel like Bill Murray in Groundhog Day. But instead of reliving the same day over and over, it felt like I was writing the same blog over and over. ‘Mortgage Rates are rising again!”  So far this year, I’ve blogged about increasing mortgage rates nine times, compared with only twice when it comes to rates dropping. Fortunately, it now seems like we may be catching a break. Does this mean that

Much to the delight of variable rate mortgage holders, the Bank of Canada announced this morning that they will be holding their rate for the second time in a row. It was only about two weeks ago when the possibility of a hike with today’s announcement was about 50/50. But with CPI inflation dropping to 3.8% in last week’s report , the consensus among economists was that we would see the rate left unchanged which was exactly what happened. While the lack of rate movement is w

In a world where there is no shortage of economic uncertainty, choosing the right term length can be like trying to pick the winning lottery numbers. We’re all on the hunt for the lowest mortgage rates as we all have a common goal: To save as much money as possible. But the lowest mortgage rate isn’t necessarily going to save you the most money over time. If it were, then everyone would be going with 5 year fixed terms as they carry the lowest mortgage rates.    But as mortga

This is almost starting to sound like a broken record, but fixed mortgage rates are rising again.  Many mortgage lenders announced fixed rate increases as recently as this morning. I would expect others to follow suit within the next few days.   The lowest 5 year fixed rates have now increased by well over 1% since the spring.  This leads to one question:   Exactly when is this madness going to stop?   Eventually, we’ll catch a break. But we’re not quite there yet. While it’s

The Office of the Superintendent of Financial Institutions (OFSI) has implemented changes affecting those with combined loan plans (CLP). A CLP combines a mortgage with a home equity line of credit (HELOC) as a single financial product. Most CLPs are readvanceable, which means the lender allows you to re-borrow the principal you’ve paid down with each mortgage payment. For example, if a mortgage payment reduces your balance by $1,000, your HELOC limit increases by the same am