Canadian housing mortgage rates are all over the map. Don’t get trapped in an unnecessarily costly mortgage agreement.
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Bond yields plunge. What it means for fixed mortgage rates Jul 25th
Bond yields dove over 30 basis points on Friday as economic worries start to replace inflation concerns..... More »
Less than 10 Percent of Canadians Could Buy a House in Toronto + MORE May 30th
Thinking about owning a home in Canada? It was only a few years ago that Toronto and Montreal were ranked among the best places to live with the cost of living as a contributing factor.
But the cost of ownership has now skyrocketed. In cities like Vancouver, Toronto and Montreal, only those in the .... More »
Should You Accept That Pre-Approved Credit Limit Increase? Jun 5th
If you faithfully pay your loans, mortgage and credit cards each month, then you’ve probably received a call or letter from your bank with the news that you were pre-approved for a credit increase or a line of credit.
You might be thinking, I don’t even use all the credit I currently have. I do.... More »
The Latest in Mortgage News – Economic Growth & Housing Affordability Dec 3rd
The latest data released over the past couple of weeks are helping to provide a reading on how different jurisdictions in the country are faring when it comes to economic growth and housing affordability. The Conference Board of Canada’s latest Metropolitan Outlook, for example, breaks down re.... More »
Is the family responsible to pay the mortgage for a loved one who has passed away? + MORE Aug 18th
When someone dies and owes money on a mortgage, is their common-law spouse responsible for paying it off? The house was in the name of the deceased only—the common-law spouse wasn’t a co-signer on the mortgage, and her name is not listed on the deed. —Louine
You’re 2 minut.... More »
Variable Rate War Heating Up
– canadianmortgagetrends.com
Mortgage shoppers looking to get a variable rate are in luck. The country’s biggest banks are currently slashing rates and clamouring for their business. A week after BMO announced its 2.45% variable mortgage rate promo (prime – 1.00%) for new and existing clients, TD responded by matching the rate at a discount of prime – […]
A number of Canadian lenders have slashed their variable mortgage rates in recent days, even as some of those same lenders are raising their fixed-rate mortgages.
And the Variable Rate price wars begin… Here’s how you can benefit!
– canadamortgagenews.ca
In order to fully understand how to take advantage of record-low variable rates, it’s important to learn some mortgage history.BMO came out swinging first a week ago with a variable rate of Prime minus 1.00%. Historically, when a BIG SIX BANK comes out with a huge price decrease, it’s only for a very short time – likely 2-3 weeks. But, during that time, they can gain massive volumes and satisfy their market share requirements from the average borrower.
With all the talk of interest rates going up, this is welcome news for borrowers. Last week, I wrote about Variable rates at Prime minus 1.09%. This week, the banks have caught on.
Let’s look at these rates more closely. Prime minus 1.00% equals a rate of 2.45%. Compare this with a five-year fixed rate that ranges between 3.34% and 3.69% and that’s quite the savings.
An old rule of thumb comes into play here…
For years, I’ve had a simple rule that I’ve followed regarding when to choose variable over fixed…
