There are many mortgage professionals who have a specific stance when advising their clients on the choice between fixed and variable rate mortgages. There are some who always recommend variable, while others might always recommend a fixed rate. This is often due to their own feelings, beliefs, and risk tolerance, which is what forms the [...]
It’s a common belief that the Bank of Canada rate is connected to fixed mortgage rates, however the two are unrelated. We’re seeing a clear example of this in today’s market, as fixed mortgage rates have been rapidly rising, while the Bank of Canada rate remains unchanged. But why? The Bank of Canada will base [...]
Last week, it appeared as though the upward trend on fixed mortgage rates had plateaued, and showed possible signs of reversal. However, the bond yields shot up again at the end of the week, breaking through resistance and therefore continuing the upward trend. I was originally thinking that fixed mortgage rates were going to settle [...]
Just as expected, the Bank of Canada announced this morning that they will be maintaining their overnight rate. This is what mortgage lenders use to base their prime rate. When the overnight rate remains unchanged, so does prime rate. It’s important to note that the BOC rate does not have any direct effect or relation [...]
The title of this blog is a question with an easy answer. Of course they will. But that’s a very loose answer since it does not state ‘when’. Eventually, we will see fixed mortgage rates rise back up over 3%, however I would not expect to see this anytime this year. Or even next year [...]
Mortgage rates have been steadily trending downward since early April 2020, and have fallen a whopping 1.25% since the beginning of the trend. That’s almost 9 months without any rate increases, which brought us to today’s lowest 5 year fixed rate of 1.39%*. Understandably, we can’t expect the downward spiral to last forever. We’ve hit [...]
With our unemployment rate on the rise, there are many finding themselves wondering how they’re going to make their next mortgage payment. If your income is severely affected by COVID-19, and you don’t have funds available to make your next mortgage payment, then you may want to speak with your current lender about the possibility [...]
By the end of the first quarter of 2020, discounts on variable rate mortgages have all but disappeared. During the last financial crisis in 2008, the discounts on variable rate mortgages were replaced with premiums, with most lenders priced at prime +0.75% to prime +1.00%. Due to extreme economic uncertainty and liquidity concerns in March [...]
It’s hard to believe that we are almost a full year into the pandemic. As we adapt to this new way of life, we’re all looking forward to the day when things return to normal. Or at least, the new normal. I’m sure I’m not the only one that’s looking forward to eating at a [...]
Whether you’re a first time homebuyer, or a seasoned home buying pro, purchasing a new home can be an exciting time. Once your offer has been accepted, the next step is to get your mortgage in place. This process can seem quick and easy, or it can become long and drawn out, leading to additional [...]
