Mortgage Rates

Just when we thought we were catching a break, fixed mortgage rates are now facing upward pressure once again. Since early May this year, they’ve been steadily climbing, tacking on an increase of more than 1%. But there was a brief sigh of relief in late August when some lenders decided to trim their fixed mortgage rates for the first time in months. It appeared that fixed rates might start to fall across the board. But thanks to yesterday’s disappointing CPI inflation report

Rate shopping can feel like a tough game, especially in a world where mortgage rates are as unpredictable as the weather. Just as the weather forecast can change unexpectedly, so can mortgage rates. It can be frustrating to find the lowest rate, only to discover that it’s no longer available once you are ready to get it locked in. It's also important to keep in mind that the lowest rate you find at the start of your quest may no longer be the lowest when it comes to sealing t

In this morning’s announcement, the Bank of Canada adhered to market expectations by maintaining their overnight rate at its current level. While the decision was not a shocker, there was some speculation about the possibility of another rate hike. The Bank has made it clear that they are not taking chances with inflation. If they had any doubt, they would have erred on the side of caution by pulling the trigger on yet another rate increase. Fortunately, that didn’t happen. D

It’s only natural that a mortgage lender will want to see your ID. After all, they are lending you several hundred thousand dollars, if not more. For the most part, providing ID is just a formality. However, there are times when something as simple as ID can create problems with your mortgage closing if not addressed early in the process. It may be something that you never would have thought of, or something that you didn’t think would be an issue. By having a better understa

Fixed mortgage rates continue to rise, and the incessant upward pressure they are under is not letting up. The lowest fixed mortgage rates that are available today may no longer be available tomorrow. Anyone shopping for the lowest mortgage rates must be conscious of this and should be locking in a rate sooner than later. It's a frustrating time for everyone these days… mortgage professionals included. To make matters worse… statistics Canada announced yesterday that inflatio

Purchasing a new home is an exciting time, but that excitement can turn to unwanted stress if you wait too long to get your financing in order. Applying for a mortgage involves a process with multiple parties involved: Mortgage professional Lender Insurer Appraiser Title insurance company Lawyer, etc. Not to mention, you the borrower. Everyone plays a role in the process and all need to come together to get your new mortgage closed in a timely manner We all lead busy lives, w

Mortgage terminology can get confusing at times, so it’s not uncommon for people to misunderstand the terms. Often someone will say they want to refinance their mortgage when they are really looking to transfer it. Or transfer it when they are looking to port it. It can get confusing at times. While a seasoned mortgage professional should be able to understand your requirements, it can also lead to you being provided with incorrect information. For example, if you ask a mortg

It goes without saying that we are all sick of these rate increases. Enough is enough! Just when it looks like we’ve seen the last of them, the Bank of Canada comes through with another hike. Will this be the last one? Or can we expect them to increase further? While it would be nice to say that we’ve now seen the last of the rate hikes in this cycle, there is too much uncertainty to know for sure. Even the Bank of Canada is not saying one way or the other. There has never

As expected, the Bank of Canada increased their overnight rate by another 0.25% this morning. This means that mortgage lenders will be adjusting their prime rate to 7.20% within the next few days. This is the first time the prime rate has been over 7% in 22 years. This impacts those with variable rate mortgages and HELOCs (Home Equity Line of Credit). Fixed mortgage rates have been in danger of increasing further, but this is not a new development. While the BoC has increase

When considering purchasing a home, one of the key factors to consider is the mortgage you can qualify for.  Mortgage qualification depends on several factors, including your financial situation and the prevailing interest rates. In today’s blog, I’m going to explore how changes in mortgage rates have affected your qualifying eligibility. Mortgage Qualification The biggest factor in determining how much you will qualify for is your debt-to-income ratio. Simply put, this is th

Yesterday’s highly anticipated CPI inflation report revealed a drop of 1.00%. This brings it down to 3.40% which is the first time it has been in the 3% range in nearly two years. This is great news, but it doesn’t come as a surprise as it was in line with what was expected. Inflation has come down substantially since it reached a high of 8.1% in June 2022 which is great, but there is still a long way to go before it reaches the Bank of Canada’s goal of 2%. Ironically, highe

Bond yields have been trending upward precipitously since early May over growing concerns with inflation. As inflation expectations rise, investors react by adjusting their bond holdings, which can have an effect on various sectors, including mortgage rates.  It’s possible that the bond market’s negative reaction to inflation concerns could be overblown, which would be good news for mortgage rates.  But what is the likelihood that we’ll see fixed rates start to drop? Understa

I’m looking forward to the day when I can start blogging about falling mortgage rates. Unfortunately, we are not there yet as rates are still on the rise with more lenders increasing their fixed rates as recently as this morning. Last week, the Bank of Canada surprised everyone with another 0.25% increase to their overnight rate, which brought the prime rate up to 6.95%... the highest since early 2001. While there were some economists expecting the increase, the vast majority

While it had appeared that we had seen the last of the rate increases from the Bank of Canada, they announced this morning that they are increasing their overnight rate by another 0.25%. This means that mortgage lenders can be expected to increase their prime rate by the same margin, which would put it at 6.95%. This is not what anyone in a variable rate wanted to hear. Or anyone else for that matter. Even the Bank of Canada themselves didn’t want to make this move. Why Did t

Back on March 8 th , the Bank of Canada announced that they were pausing their rate hikes . This resulted in bond yields plummeting, which resulted in 5 year fixed mortgage rates dropping by as much as 0.40%. This was their lowest since early June 2022. In early May, bond yields started trending steeply back up, virtually erasing any downward rate movement. The lowest 5 year fixed rate for an insured mortgage had bottomed out at 4.24%.  As of today, the lowest insured rate is

While the Bank of Canada has eight scheduled rate announcements per year, fixed mortgage rates have no set schedule. They can move in either direction at any time, and one piece of news can put severe pressure on them in one direction or another. Most recently, there was news of inflation increasing to 4.4% year over year in April, which was the first increase since it peaked at 8.1% in June 2022. One of the biggest influencers in the direction of fixed mortgage rates are bo

While fixed mortgage rates have fallen off of their 14 year highs we saw back in the fall of 2022, they are now facing upward pressure once again. Bond yields are one of the key factors involved in fixed mortgage rate pricing . As the yields have been rising precipitously since early May, mortgage lenders may soon be forced to increase their fixed rates. If the upward trend continues, then fixed rate increases will be imminent. It’s almost to that point right now. While the

While fixed mortgage rates have come down from their 14 year highs, they are still considerably higher than there they were over the last five years. If you went with a 5 year fixed rate in 2018 that has not yet renewed, then your current rate is likely between 2.89% and 3.14% if you arranged your mortgage through us. Now that rates are considerably higher, many wonder what kind of an impact this may have on their payments at renewal…or if they will even qualify. Higher rates

If your goal is to pay your mortgage off as quickly as possible, you may be inclined to request a shorter amortization. After all, you’ll become mortgage-free faster by choosing a 25 year amortization instead a 30 year, right?  Not necessarily. In fact, if you’re planning on paying your mortgage off as fast as possible, then your initial amortization is irrelevant providing that you have two things in place: Flexible prepayment privileges Discipline Flexible Prepayment Privil

A HELOC, or H ome E quity L ine O f C redit, is a simply a line of credit that is registered against your home. It can also be referred to as a SLOC (Secured Line Of Credit). It allows you to draw equity out of your home when you need it.  There are two notable benefits of having a secured line of credit over a personal line of credit (PLOC). Higher limit Lower rate Since a HELOC is backed by your home's equity, lenders face lower risk which enables them to approve you for a