Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
Latest News
The Mortgage Stress Test Has Already Increased for Some Borrowers Mar 23rd
All eyes have been on the Bank of Canada’s rate tightening and its impact on variable mortgages, but now there are fresh concerns given the flurry of recent increases to 5-year fixed mortgage rates..... More »
Bank of Canada raises benchmark interest rate to 1.5%, noting trade tensions - CBC.ca + MORE Jul 11th
CBC.caBank of Canada raises benchmark interest rate to 1.5%, noting trade tensionsCBC.caFor the fourth time in a little over a year, the Bank of Canada has raised its benchmark interest rate, a move that will increase the cost of borrowing for Canadians with variable-rate mortgages and lines of cred.... More »
Bank of Canada expected to raise its key rate for first time in nearly seven years + MORE Jul 11th
The Bank of Canada is expected to raise its key interest rate target for the first time in nearly seven years on Wednesday following signs the economy is well on the road to recovery after the crash in oil prices.
Low interest rates have helped fuel the housing market in recent years, incentivizing .... More »
What happens when a buyer backs out of a real estate deal? + MORE Sep 2nd
When it comes to backing out of a real estate deal, the law doesn’t tend to side with the dealbreaker, says Ron Butler, a veteran mortgage broker and one of the founders of Butler Mortgage in Toronto. If you’re the buyer, “You should find a way to complete the sale—beg, borrow, do whatever y.... More »
Latest in Mortgage News: Dominion Lending Centre Unveils New Deals + MORE Oct 23rd
Dominion Lending Centres continued its growth trajectory this month with several new announcements..... More »
RBC Examines Price Growth Triggers
– canadianmortgagetrends.com
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 in Toronto and 6.2% in Vancouver, outperforming the S&P/TSX Composite total return of 5.3%. RBC’s analysis found that four factors accounted for between 85% and 90% of those price increases since 1999: Lower interest rates Higher incomes An increase in the percentage of incomes used to make mortgage payments Larger down payment gifts from family members. The remaining READ MORE
Rates on short-term bills drop at weekly Treasury auction
– canadianbusiness.com
WASHINGTON – Interest rates on short-term Treasury bills fell in Monday’s auction with rates on three-month bills dropping to their lowest level in four weeks.
The Treasury Department auctioned $37 billion in three-month bills at a discount rate of 0.285 per cent, down from 0.320 per cent last week. Another $32 billion in six-month bills was auctioned at a discount rate of 0.395 per cent, down from 0.425 per cent last week.
The three-month rate was the lowest since those bills averaged 0.270 per cent on July 5. The six-month rate was the lowest since those bills averaged 0.390 per cent on July 11.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,992.80, while a six-month bill sold for $9,980.03. That would equal an annualized rate of 0.289 per cent for the three-month bills and 0.401 per cent for the six-month bills.
Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, edged down to 0…
The Treasury Department auctioned $37 billion in three-month bills at a discount rate of 0.285 per cent, down from 0.320 per cent last week. Another $32 billion in six-month bills was auctioned at a discount rate of 0.395 per cent, down from 0.425 per cent last week.
The three-month rate was the lowest since those bills averaged 0.270 per cent on July 5. The six-month rate was the lowest since those bills averaged 0.390 per cent on July 11.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,992.80, while a six-month bill sold for $9,980.03. That would equal an annualized rate of 0.289 per cent for the three-month bills and 0.401 per cent for the six-month bills.
Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, edged down to 0…
