Mortgages

As the weather heats up, so does the buzz around a potential rate cut from the Bank of Canada. Everyone’s wondering: will the BoC finally give us some relief?  It’s no secret that a rate cut is on the horizon, but the million-dollar question is: when and by how much?  The Bank is laser-focused on bringing inflation under control, and they’ve been crystal clear—they won't slash rates until they’re confident they’ll hit their 2.00% inflation target. The latest inflation report

Following weeks of upward pressure on fixed mortgage rates, we’re now starting to see some mortgage lenders come through with cuts. This doesn’t mean that fixed rates are going to start plummeting, but at least the upward trend has been broken. Fixed rates have risen by as much as 0.30% over the last few weeks so it’s nice to finally catch a break.   The reason for the relief in upward rate pressure is due to weaker employment numbers released out of the US on Friday, May 3r

As we get closer to the highly anticipated rate cuts from the Bank of Canada, everyone’s focus is on falling mortgage rates. However, mortgage lenders have been increasing their fixed rates, and it’s possible that they could increase even further.   This can sound strange to many. With so much talk about rates dropping, why is it that fixed mortgage rates are moving the other way?   Many believe that fixed mortgage rates move with the Bank of Canada rate. While they are rela

Despite widespread anticipation of rate cuts from the Bank of Canada, fixed mortgage rates continue with their upward climb. It's a common misconception that when the BoC slashes its rate, fixed mortgage rates will follow suit, dropping by an equivalent margin. However, this assumption doesn't always hold true. While there's a possibility that fixed rates could dip after a BoC cut, there's no guarantee; they can remain unchanged or even increase further.  Currently, upward pr

After last week’s disappointing inflation numbers reported by our neighbors south of the border, Canada’s headline inflation has dropped to 2.9% year over year… right in line with what economists were expecting. This is the first time we’ve seen the number start with a two in almost three years and is exactly what the Bank of Canada was looking for.   Does this mean that we’ll see the first rate cut on their next scheduled announcement date of June 5th?    While this is what

In this morning’s scheduled rate announcement, the Bank of Canada left their overnight unchanged for the sixth straight time. This is exactly what was expected and any movement in either direction would have been quite shocking.   Four of the big six banks have been forecasting a cut by the end of the 2nd quarter, which would come on June 5th, the final scheduled announcement date for that period.  Will they be right?   In a press conference following this morning’s announcem

Everywhere you look, there is news about mortgage rates falling. While this is expected, it may not happen quite as fast as we’re hoping for. It’s also never a straight path down and there can be some bumps along the way.   While it’s possible that we could still see cuts from the Bank of Canada before the end of the 2nd quarter, fixed mortgage rates can move in either direction at any moment. Although we have not yet seen any formal hikes in fixed mortgage rates, they are no

Your credit score is the first thing that a lender looks at when approving your mortgage. It can mean the difference between qualifying for a mortgage or being flat out declined. It’s common knowledge that your score will drop if you’re late on your payments or if collections are filed against you. However, there are three credit score lowering traps that could be hurting your score without you even realizing.  1. Closing Credit Accounts Most are not aware that their credit s

With expectations set for a significant decrease in mortgage rates over the next few years, the majority of mortgage seekers have been choosing shorter term fixed rate products. However, shorter term rates come at a premium. The shorter the term, the higher the rate.   Your essentially accepting pricier, higher rate mortgage with the anticipation of offsetting the additional cost with a much lower rate at the time of renewal. Essentially, it’s a calculated gamble–enduring a b

I’m sure you’ve seen all the TV commercials on reverse mortgages, which is basically a way to take equity out of your home without any income, and without ever having to make a single mortgage payment. Reverse mortgages are generally available to those aged 55 or older with significant equity in their homes. They can play a significant role in elevating the quality of life in your retirement years, while virtually eliminating financial worry, allowing you to enjoy a life of f

In today’s eagerly awaited rate announcement from the Bank of Canada, they've decided to maintain their overnight rate. The overnight rate is what mortgage lenders use to set their prime rate, which directly influences those with variable rate mortgages and HELOCs .  Frankly, this morning’s announcement wasn’t a shocker and is exactly what we saw coming.  The countdown to rate cuts has begun, and like many of you, I’m on the edge of my seat waiting for it. But the big questi

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