Canadian housing mortgage rates are all over the map. Don’t get trapped in an unnecessarily costly mortgage agreement.
Latest News
Nesto eyes controlling stake in CMLS Financial, media report suggests + MORE Jun 2nd
Online mortgage lender Nesto Inc. is currently in talks to purchase a controlling stake in CMLS Financial Inc.,.... More »
The importance of effective listening to your success as a broker + MORE Dec 16th
As mortgage brokers look for ways to stand out in a competitive industry landscape, it’s increasingly important to consider the impact that clear and concise communication can have on service levels..... More »
2023 mortgage market year in review Dec 31st
As we wrap up a year full of economic twists and turns—and interest rate ups and downs—we wanted to look back at some of the top mortgage-related stories that graced our pages in 2023..... More »
Metro Vancouver home sales jump 32% in October amid lower mortgage rates + MORE Nov 6th
Higher inventory provides more options for buyers as demand picks up, fuelled by recent Bank of Canada rate cuts..... More »
Prime rate falls to 6.70%, making variable rate mortgages more attractive + MORE Jul 26th
Variable-rate mortgage holders received positive news on Wednesday as major lenders reduced their prime rate following the Bank of Canada's rate cut earlier in the day..... More »
Equitable Bank says majority of its mortgage borrowers have already renewed at higher rates
– canadianmortgagetrends.com
Alternative lender Equitable Bank revealed today that a majority of its residential mortgage clients have already renewed at higher interest rates and have largely absorbed the increases.
In its 2023 Fall Economic Statement, the federal government announced the Canadian Mortgage Charter. It’s a new initiative intended to address the housing affordability issues caused by rising interest rates, low housing supply and more. The charter, which sets out expectations for lenders, is the latest step in a series of affordability measures put forward by the government in recent months, many of which focus on banking and borrowing.
How do interest rates relate to affordability?
In an effort to subdue runaway inflation, the Bank of Canada (BoC) has raised the benchmark interest rate several times over the last 24 months. This rate affects the interest rates of other financial products. The interest offered on guaranteed investment certificates (GICs) is far higher than usual, for example. This is because the benchmark rate is higher.
Unfortunately for home owners in Canada, the benchmark rate also affects mortgage interest rates. Home owners with variable-rate mortgages, whose interest rates fluctuate with the benchmark rate, have grappled with sharp increases to their mortgage payments over the past few years…
