Mortgage Rates

If you are worried about rising mortgage rates than you are not alone. Fixed mortgage rates have increased by more than 3% since September 2021. Prime rate has increased by 1.25% since March with more rate increases on their way. All in all, prime rate is expected to increase by another 1.50% to 2.00% before it finally reaches it's peak (I’ll be discussing this in detail in next week’s blog). What Affect Will This Have On Your Payment? If you are currently in a variable rate

The Bank of Canada has increased their rate by 1.25% since the beginning of the year and are not finished. The next scheduled rate announcement is on July 13 th when they are expected to increase by as much as 0.75%. That would be a triple increase in a single announcement.   But will they really move forward with such a large increase?  Or is this all talk? The Bank of Canada stated in their last rate announcement that they “are prepared to act more forcefully if needed t

One of the biggest mistakes that people make when their mortgage is coming up for renewal is to re-sign with their current lender without looking into other options. It’s super easy as you just need to sign the form and send it back to the bank. That’s it, you’re done!  Mortgage renewed!  But this can be a costly mistake. While there are times when some mortgage lenders will offer competitive rates right out of the gate, it’s more often that another lender will be more compet

The Bank of Canada announced this morning that they will be increasing their key policy rate by another 0.50%. This means that we can expect the prime rate to increase from 3.20% to 3.70%.  I would expect the big banks to be the first to announce that they have matched the increase, followed by monoline lenders and credit unions. By the end of this week, all lenders will have made the adjustment. Today’s rate increase is no surprise and is exactly what we were expecting.  Any

Mortgage rates are always a hot topic of conversation, especially when they are on the move. As fixed mortgage rates have increased by more than 2% since September 2021, the topic is now hotter than ever. The rapidly increasing rates are leading many to start looking for fixed mortgage rates exclusively. But this can be a costly move….and I’m not just talking about the rate. Rates Will Move In Both Directions When rates are on the rise, many tend to look for the comfort of a

With real estate prices as high as they are, qualifying for the required mortgage can be challenging for many people. One advantage to using a mortgage broker is that we have options with big banks, as well as many other mortgage lenders. Some with more flexible guidelines that may allow you to qualify for a considerably higher amount than what you can expect from a major bank. If you have a down payment of less than 20%, then your options will be limited by CMHC guidelines.

There are many things to consider when choosing between a fixed or variable rate mortgage . As of recently, you can add the mortgage amount you qualify for to that list.    This is something that is relatively new. For the past several years, your choice of mortgage product would not have an impact on your maximum qualified amount. However, the game has now changed with fixed rates doubling since late summer 2021.  So the question is: Will you qualify for more if you take the

The Bank of Canada has hiked their key policy rate by 0.75% since March 2 nd , which resulted in immediate rate increases for anyone currently in, or considering a variable rate mortgage. They are not going to stop there and increases of an additional 1.00% - 2.00% are expected over the next year. This would bring the prime rate up to 4.20% to 5.20%. This leads to three big questions: What is the likelihood that the prime rate will increase by another 2.00%? What impact would

One of the most common mortgage questions is whether to go with a fixed or a variable rate. Some mortgage professionals will advise to always go variable, however, this is not the best choice for everyone. While variable rate mortgages have historically outperformed fixed from a cost savings perspective, there are many people who are not wired for the uncertainty that comes with having a variable rate mortgage . We are also in a bit of a different time and the past doesn’t al

Whenever there is talk about the Bank of Canada increasing rates, many start to wonder if they should convert their variable rate mortgage into a fixed. Some will automatically fear the worst which can lead to panic resulting in them making a move that they might later regret. “My neighbour told me rates are going to 20% and that I better lock in now!” When choosing a variable rate mortgage, it’s important to understand that rate will move in either direction over the course

The Bank of Canada announced this morning that they are increasing their key policy rate by 0.50% which will bring it to 1.00%. This is the rate that mortgage lenders use to set their prime rate, which will now increase to 3.20%. The last time the BOC increased their rate by more than the typical 0.25% was back in 2000. Despite the rarity of the larger increase, it was no big surprise and is exactly what was expected. Why Such A Large Move? Inflationary concerns are taken ser

The next rate announcement from the Bank of Canada is scheduled for April 13 th . Many will be watching closely to see if they will be increasing their key policy rate for the second time this year. This is the rate that mortgage lenders use to set their prime rates, which is of most interest to those currently in, or considering a variable rate mortgage. The Bank of Canada increased their rate by 0.25% in their last announcement on March 2 nd , which was the first increase s

Out of everything we can control in our lives, rising mortgage rates are not one of them. We do however have control over how we respond to them. Sure, you could sit back and ride out the storm. But there might be actions you can take to minimize the effect of the increases and therefore maximize the money left in your pocket at the end of the day. Whether you’re shopping for a new home, have a mortgage coming up for renewal, or are currently in the middle of your mortgage te

Upward pressure on fixed mortgage rates continues into this week. While the Bank of Canada has eight scheduled rate announcements per year (which determines prime rate), fixed and variable rate discounts can change at any time. When fixed rates change, they can change quickly. Below is an example of recent rates for 5 year fixed insured mortgages by date: September 1st, 2021:  1.59% January 1st, 2022:  2.19% March 16th, 2022:  2.84% That’s a 79% increase totalling 1.25% over

Even with last week’s rate increase from the Bank of Canada, the spread between fixed and variable is still around 1.40%, which is larger than it has been in years. While multiple rate increases are still expected in 2022, the large spread gives you additional cushion to protect variable rate holders against rising rates.  More rate increases are coming, so it’s important to be prepared for what is coming ahead. Just Don’t Make This Mistake! One of the biggest mistakes you

In their 2 nd scheduled rate announcement for 2022, the Bank of Canada confirmed this morning that they will be increasing their key policy rate (overnight rate) by 0.25%. The last time they increased their rate was on October 24, 2018 . Today’s increase affects anyone with a variable rate or a HELOC (Home Equity Line Of Credit) . It does not affect fixed rate mortgages directly, however it can have an indirect effect on them. Additional rate increases will follow.   The pop

If you’ve been shopping for a new home, then you have already experienced the craziness of the red-hot real estate market firsthand. You see home after home, and are continuously outbid. Your frustration grows as you see your dream home slip through your fingers time and time again. With so few listings, the market is only going to heat up further. As more and more buyers get excited about buying in the spring market, the process becomes more and more difficult.   So how can

Whether you are a first time homebuyer, or someone who has been through the process many times before, purchasing a new home can be an exciting experience. The excitement can however turn into a nightmare, so it’s important that you have an understanding of how the mortgage approval process works. This can help prevent any potential complications along the way, which will lead to a smoother mortgage closing and better overall experience with the mortgage process. And providin

It’s no big secret that the Bank of Canada will be increasing their key policy rate (overnight rate) multiple times in 2022. What we don’t know is when or how often it will occur. With all the talk about rate increases, many are asking if they should be choosing a fixed rate, or ‘locking in’ by converting a variable rate into a fixed . But is this a good idea? The effects of rate increases are often blown out of proportion, causing panic, and leading to swift and generally co

One of the most common questions we get from our clients is whether they should be choosing a fixed or variable rate mortgage. With all the talk about rising rates, it can be enough to scare anyone into locking into the certainty of a fixed rate. I’m hearing more and more people telling me that they’re being advised to go fixed to protect themselves against rising rates. But who are the ones doing the advising?  When it comes to mortgages, everyone seems to think they are an