New mortgage rules take effect today; more may be coming on Monday, economist says + MORE Dec 15th
Low Rates Helping Borrowers Pay Off Mortgages at Record Pace Jun 25th
Detroit is now the hottest market for landlords + MORE Jun 13th
New Rule Targets HELOC Holders Seeking a Second Mortgage + MORE Nov 9th
Mortgage-Free By 30 – Here’s How + MORE Sep 28th
Most mortgage fraud doesn't make headlines. Here's a monster fraud against BMO that did: http://t.co/WnhC1DQX1d More: http://t.co/nYYWCOdoYc
— CMT (@CdnMortgageNews) June 5, 2013
TD & RBC Sharpen Their Public 5-Year Rates
– canadianmortgagetrends.com
BLOGGED: Spotlight on Mortgages: June 7, 2013 http://t.co/hIadWelxbY
— RateSupermarket.ca (@RateSupermarket) June 7, 2013
How Bond Yields Affect Fixed Mortgage Rates
– ratesupermarket.ca
The bond markets have been particularly volatile for the past few weeks on fears that the credit situations in places such as Cyprus could spiral out of control and bring the global markets down with it. The loss of confidence in some of these European Union nations is spiking up yields on bonds in countries with strong ties to the continent. Canada is no exception we have recently seen a spike in rates up to 1.10 as of June 6. Not a huge number, but it does indicate that fixed mortgage rates are poised to rise. Here’s how it works
Bonds and Fixed Mortgage Rates
When a bank offers you an interest rate on a loan (mortgage) they are being guided by the rate they are getting themselves. This market rate is what they are paying to borrow the money for you from either their customers or other institutions. They pay those people a smaller amount of interest on the loan that they can lend to you for a higher rate to make a profit, also referred to as a spread. If it’s costing the bank more money to borrow, that cost will be downloaded on to the lender…
