How European Bonds Impact Canadian Mortgage Rates + MORE Apr 28th

Monika Basnet, 15, right, holds her brother Munal Basnet, 10, during the cremation of their father killed in Saturday’s earthquake, at the Pashupatinath temple, on the banks of Bagmati river, in Kathmandu, Nepal. (Manish Swarup, AP)
KATHMANDU, Nepal — For hours after Nepal was shaken by one of the most intense earthquakes here in nearly a century, 12-year-old Neha Chumda screamed for help.
She had been inside her family’s four-story villa in Kathmandu when the tremor struck unexpectedly Saturday. And in the life-or-death seconds that followed — when her home swayed at its walls began cracking apart—she and 11 members of her family rushed to get outside.
They all made it—except Neha, who was pinned in a room between the second and third floors, which had collapsed onto of each other.
“She was crying for so long, we tried to help her,” Transport Minister Tek Bahadur Garung said of the girl, who is the daughter of one of his cousins.
The cries turned faint, then ceased by the time Nepalese army troops and security forces began trying to break through the front of the house to pry Neha out at 4 p…

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…

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…