Posts tagged ‘Mortgage Interest Rates’
Variable Rate Mortgages Continue To Increase – Trend of the Shrinking Spread
The culprit seems to be narrowing spreads. The spread is essentially the difference between the rate offered by a lender to a client minus the lender’s cost to fund your mortgage. The lender’s base cost for variable rate mortgages is typically a 30 day bankers’ acceptance (BA) yield.
Mortgage Interest Rate Review Oct 7th 2011
Tweet This week, mortgage interest rates have continued a trend that we’ve seen developing over the past 4 weeks. Mortgage lenders are effectively enticing mortgage borrowers to take fixed rate mortgages by lowering their fixed rates and increasing the spreads on their variable rate mortgages. This has created a convergence of fixed and variable making [...]
Mortgage Interet Rate Review September 28th 2011
Tweet Last Friday, September 23rd, we saw a huge drop in the Government of Canada 5 year bond yield. This drop creates downwards pressure on fixed rate mortgages which are priced according to bond yields. Although fixed rate mortgages are priced at an all time low it appears that there is the capacity for rates [...]
The 50/50 Mortgage, Why You Should Consider It
Tweet Here’s the situation: you’re in the market for a mortgage. Your timing is perfect because rates have never been so low. Your colleagues at work took a variable and can’t believe the unbelievably low effective rate they are paying. Your parents are conservative old school and think it would be foolish to pass up [...]
Bank Of Canada Leaves Prime Rate Unchanged
Tweet The Bank of Canada left the prime rate unchanged today. In explaining the decision to leave borrowing costs alone for an eighth meeting, as expected, the central bank said it believes Canada’s economy is growing again after stalling in the second quarter, but painted a troubling picture for the United States and Europe, and [...]
Mortgage Interest Rate Review August 31st
Tweet Late last week, RBC suddenly triggered a move to reduce the spread on their variable rate mortgages and it didn’t take long for the rest of the market to follow. Previous to the change the average spread for a 5 year variable was P-.75%. Today the spread has narrowed to P-.50%. There was tremendous [...]
Son Of A Broker Quoted In The Financial Post. Twice!
Tweet I like to share with my readers the small successes of my online exploits. Last week I was quoted in two separate Financial Post articles about mortgage interest rates. The recognition, as insignificant as it may be, is very satisfying and reassures me that my blogging is achieving its goal. The purpose of this [...]
Mortgage Interest Rate Update August 10th 2011
Tweet The recent global economic downturn has benefits if you are currently in the mortgage market. The market mayhem has two effects: on the one side it alleviates any pressure the Bank of Canada may have felt to increase the prime rate and secondly, as investors pour their money into safe investments like Government of [...]
July 21st Mortgage Interest Rate Review – Heatwave Edition
Tweet Greetings from poolside! I couldn’t stand the thought of being cooped up in the office with this historic summer day in Toronto. Conveniently all of my gadgets are working and I like the idea of doing this mobile office more often. Rates seem to be settling down and the expected July Bank of Canada [...]
