Canadian housing mortgage rates are all over the map. Don’t get trapped in an unnecessarily costly mortgage agreement.
Latest News
RBC Examines Price Growth Triggers + MORE Aug 1st
Many an armchair analyst has speculated on the factors behind Toronto and Vancouver’s runaway home values. And now, a recent study by RBC Capital Markets brings more data to the table. According to its report, home prices increased at a compound rate of 5.6% annually from 1999 to 2015 i.... More »
Mortgage Digest: MPC National Conference edition + MORE Oct 31st
Highlights from this week’s MPC National Conference in Montreal, including key insights from the panel discussions, keynote speakers and concurrent sessions..... More »
CIBC’s Tal: “This is not a meltdown,” but expect short-term pain + MORE Oct 23rd
Despite softening origination activity, mortgage professionals should welcome the current "reset" to healthier market conditions..... More »
Buying a house with cash + MORE Aug 3rd
(Getty Images / Martin Barraud)
You’re selling your home and a buyer submits an “all cash offer.” What does this mean and what are the advantages or disadvantages of buying a house with cash?
When a buyer is not making his purchase of your home subject to obtaining a mortgage, they can use a .... More »
Is a reverse mortgage right for you? + MORE Aug 15th
Many Canadians are “house rich.” Their net worth appears healthy (the average tops $675,000), but in reality, a large chunk—sometimes 50% or more—of that wealth is tied up in their homes. Factor in the nation’s growing personal debt (according to Statistics Canada, we collectively owe $1.7.... More »
What Could Have Been
– canadianmortgagetrends.com
If there were ever a time that the mortgage broker industry needed to come together, this is it. Our game is changing. Brokers have decent market share, but agent revenues per deal are dropping, and they may not stop dropping for the foreseeable future. On top of that, regulatory tightening is making it harder to do our jobs, lenders are looking for ways to cut origination costs and the Internet has started to disintermediate slow-to-adapt brokers. It’s not unreasonable to think these trends could conspire against broker networks and cut funding for industry initiatives going forward. So it was with a degree of READ MORE
Home equity line of credit popular for renos
– moneysense.ca
(iStock)OTTAWA – You’ve spent hours picking the perfect tile, countertops and cabinets.
You researched the best stoves, dishwashers and refrigerators.
Your budget is set and your favourite contractor is available.
Now you just need to figure out how to pay for it all.
Tony Tintinalli of the Bank of Montreal says it starts with examining the scope of your home renovation project, the budget and the required contingency fund.
“The most cost-effective way, if you’re going to borrow, is to use equity in your house,” said Tintinalli, BMO’s regional vice-president of personal banking.
Home equity lines of credit are generally the most popular way to finance renovations, with rates generally ranging from prime to prime plus 0.5 per cent. That’s compared to a regular line of credit, which could be prime plus three to four per cent.
“When we look at the home equity line of credit option, normally we can do larger amounts because we are taking the security, so not only are you able to get it at a cheaper cost, there’s more room,” said Tintinalli…
How European Bonds Impact Canadian Mortgage Rates
– ratesupermarket.ca
Canadians have enjoyed ultra-low mortgage rates for several years now, but this spring marks a truly competitive season; even big banks have discounted their fixed rates to record lows, while a January Bank of Canada rate cut has led to the lowest Prime rate since 2010. Spring is traditionally the busiest time for mortgage providers, but demand and competition aren’t the only factors behind today’s low rates; global influences, especially in Europe, are also responsible for lender discounting.
The European Impact
Approximately $8.8 billion of Canadian mortgage bonds are denominated in euros and francs, the yields of which are being pushed below zero. This is because the European Central Bank has started buying euro government bonds in an effort to push its quantitative easy agenda. This is similar to the tactic used by the U.S. Federal Reserve; quantitative easing helps stimulate the post-recession economy, and maintains a liquid cost of borrowing. In the ECB’s case, such measures are to counter the fallout from economic turmoil in Greece, and oil’s downturn…
