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Posted by: Dean Kimoto
Mortgage providers across the country have been busy raising rates over the past week, and it could continue next week as bond yields continue to rise. On Thursday, the Government of Canada 5-year bond yield briefly surged to an intra-day high above 4.41%. It pulled back slightly, but remains at a 16-year high. As a […]
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Even though prospective homeowners usually pay for their home appraisal, many remain unaware that they typically won’t receive a copy of it. That’s because the professional appraiser sent to calculate the value of a home—which can cost anywhere from a few hundred to several thousand dollars—doesn’t actually work for the prospective homeowner. “Most brokers know […]
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Fixed mortgage rates could surge higher in the coming week after Government of Canada bond yields—which lead fixed mortgage rates—shot up to a 16-year-high. Rate-watchers say mortgage providers could hike rates by anywhere from 20 to 30 basis points (0.20% to 0.30%). “Fixed rates should be up 20 bps on this news, however if the […]
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When deciding to leave interest rates unchanged at its Sept. 6 monetary policy meeting this month, the Bank of Canada determined the past hikes are working to slow the economy. “[Governing Council] members agreed that data since their last decision had shown more clearly that demand was slowing, and excess demand was diminishing as monetary policy gained […]
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Housing markets in the country’s largest markets continued to moderate in August, following the Bank of Canada’s recent interest rate hikes over the summer. What began as a strong spring housing rally has since cooled with more balanced conditions in most markets. In the Greater Toronto Area, the country’s largest housing market, both prices and […]
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CIBC reports that its mortgage clients are so far managing to absorb the payment shocks as their mortgages come up for renewal at higher rates. The bank made the comments during its third-quarter earnings call, where Chief Risk Officer Frank Guse confirmed the bank has already navigated a substantial number of mortgage renewals at higher […]
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Today the bank of Canada held its policy interest rate at 5% citing slowed economic growth due to a weakening in consumption growth, decline in housing activity, and the impact of wild fires across the country. See the full Bank of Canada post here: Bank of Canada maintains policy rate, continues quantitative tightening How does […]
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Weaker-than-expected GDP data last week likely sealed the deal for a rate hold tomorrow by the Bank of Canada. But not all economists are convinced that this marks the end of the current rate-hike cycle. Statistics Canada reported on Friday that second-quarter economic growth contracted by 0.2% compared to Q1, well down from the Bank of Canada’s […]
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Rate hikes are definitely off the table The Canadian economy weakened surprisingly more in the second quarter than the market and the Bank of Canada expected. Real GDP edged downward by a 0.2% annual rate in Q2. The consensus was looking for a 1.2% rise. The modest decline followed a downwardly revised 2.6% growth pace […]
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Originally introduced to mitigate borrower default risks in the event of rising interest rates, some brokers now argue that Canada’s mortgage stress test is no longer needed with interest rates presumably near their peak. Others, however, say it’s a tool that’s best left in place for the time being. Back in 2016, the federal government […]
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