Learn more about Canadian mortgage rates, rules and the latest news – read on!
Latest News
An inside look at how your loans — and spending — affect your credit score Apr 6th
Having a variety of loans could help strengthen your credit score — or harm it, depending on your spending and payment history. But a credit card, car loan and mortgage work differently, making it hard to know how to improve your number..... More »
CIBC sees “no areas of concern” as 100,000 mortgage clients renewed at higher rates so far this year + MORE Sep 14th
CIBC reports that its mortgage clients are so far managing to absorb the payment shocks as their mortgages come up for renewal at higher rates..... More »
Renewing your mortgage but planning to sell soon? Read this first May 12th
Why flexibility and penalties can matter more than rates if you plan to sell within the next 12 months.... More »
Buying a second home: How it works in Canada + MORE Sep 25th
What does it take to buy a second home in Canada? There’s a lot to consider, from figuring out whether you can afford to buy a second property (and whether it’s worth it) to navigating the down payment requirements and mortgage rules. To help you get started, we’ve answered these questions and.... More »
5 smart strategies for renewing your mortgage + MORE Mar 25th
Owning a home has plenty of benefits, but it’s not without challenges. Over one million mortgages in Canada are set to renew in the next few years, and many home owners will be faced with higher interest rates. If you’re in this situation, you may feel squeezed in two ways: a higher interest rat.... More »
Variable Mortgage Rates to Rise as Prime Rate Jumps to 3.20%
– canadianmortgagetrends.com
Variable-rate mortgage holders are about to see their interest costs rise again after Canada’s Big 5 banks announced a 50-basis-point hike to prime rate on Wednesday.
Bank of Canada Raises Benchmark Interest Rate
– canadamortgagenews.ca
Yesterday was Wednesday the 13th – but for some, it might have felt like Friday the 13th. That’s because the Bank of Canada announced they’re upping their rate by a whopping 0.50%. This rate hike means that the prime rate will increase from 2.7% to 3.2%, a fairly sizable jump relative to what we’ve seen in the last couple of years.
All of this might seem terrifying. But let me assure you: there’s no need to panic.
How Does This Affect Me?
If you’re looking to secure a fixed-rate mortgage, you can take a deep breath. The rate hike announced yesterday won’t directly affect you. Why? Because fixed rates are based on Canada’s 5-year government bond yields. Those are currently sitting at 2.53% and have not changed with this latest Bank of Canada rate hike.
In fact, I don’t expect fixed-rate mortgages to move much at all over the next 12-18 months. Those rates already increased over the last five months in anticipation of rising rates, so investors have built in the rate hikes already…
