If there’s one thing Donald Trump loves, it’s making headlines. Whether it’s a surprise announcement, a bold policy move, or a sudden change of heart, he knows how to keep the world on its toes. His latest act? Threatening a 25% tariff on goods imported from Canada and Mexico—and then signing them into action on [...]
As widely expected, the Bank of Canada has announced a 0.25% cut to its overnight rate in its first scheduled announcement of 2025. This marks the sixth consecutive cut, bringing the total reductions to 2.00% since the BoC began easing rates in June of last year. With this latest move, the prime rate is set [...]
As we prepare for the Bank of Canada to continue with their rate cuts, mortgage lenders have now started reducing their variable rate discounts off prime rate. In other words, mortgage lenders are becoming less aggressive with their variable rate offerings, meaning those currently shopping for a variable rate mortgage would now be offered higher [...]
Since the Bank of Canada’s aggressive rate hikes in 2022, variable rate mortgages became as popular as flip flops in a snowstorm. Given that the prime rate had increased faster than anyone expected, the Bank of Canada included, very few could stomach the risk. Variable rate mortgages came with a significant rate premium, starting borrowers [...]
Happy New Year! It’s hard to believe we’re stepping into 2025 already. Time sure flies! 2024 was an exciting year for the mortgage market, as many Canadians eagerly awaited rate cuts from the Bank of Canada—and they got them. At the start of the year, forecasts ranged from a modest 1.00% cut to a more [...]
The Bank of Canada handed out an early holiday gift on December 11th with a much-anticipated 0.50% rate cut. If you have a variable-rate mortgage, you’re probably smiling as your rate just dipped. And if you’re in an adjustable-rate mortgage, your monthly payment joined the party. But here’s the twist: on the very same day [...]
As expected, the Bank of Canada announced that they are cutting their overnight rate by another 0.50% this morning. As the standard movement is 0.25%, anything greater is considered an oversized move. Just weeks ago, it seemed like a smaller 0.25% cut was on the horizon. However, given higher unemployment data released on Friday, it [...]
The prospect of lower mortgage rates always brings excitement, especially as the Bank of Canada has already reduced its rate by 1.25% this year. With additional cuts projected into 2025, the landscape appears favorable—yet not without complexity. Interestingly, fixed mortgage rates have recently moved in the opposite direction, rising by roughly 0.30% over the past [...]
Many clients tell us they’re waiting for the next Bank of Canada rate announcement before locking in a fixed mortgage rate. However, it’s important to understand that fixed rates don’t move in tandem with the Bank of Canada’s rate. In fact, they can sometimes move in the opposite direction. For example, while the Bank of [...]
Since 2018, anyone applying for a mortgage in Canada has been required to pass a mortgage “stress test.” This test ensures borrowers qualify at a higher interest rate than the rate their payment was based on, acting as a safety net if rates increase. While some have criticized the stress test, I’ve always supported it—especially [...]
