As we recently heard, another interest rate hike from the Bank of Canada means some Canadians could be spending a lot more on their monthly mortgage bills. According to industry professionals, it seems that variable- rate mortgage holders will be the most impacted. “It’s all but certain that when the Bank of Canada makes this announcement, the…
The Bank of Canada’s April 13 interest rate hike of 0.5%—the biggest one-time rate jump in decades—caught many variable-rate mortgage holders off guard. Some are likely thinking about running to their local bank branch or mortgage specialist to lock into a standard five-year fixed rate. Those who do so will likely be welcomed into the lion’s…
It has been a long time since we brought on this subject, and now with 2022 well on the way, we thought we’d share some advice! But before we move forward with all the tips, let’s go back to some quick basics… What happens when you purchase a home? A down payment is typically applied…
Canada’s central bank warned real estate buyers to prepare for higher interest rates. It appears buyers are calling their bluff, opting for little rate protection on loans. Bank of Canada (BoC) data shows the share of new mortgages with variable rates doubled in October. Interest costs on most new uninsured mortgages will rise with rates, as borrowers…
Now that we are approaching the end of another calendar year, what can the industry start predicting for 2022? Some believe that mortgage rates will rise again. The Bank of Canada’s recent forecast is a good indication of why, said Don Drummond, economist at Queen’s University and former chief economist for TD Bank. The Bank of Canada announced…
Variable rate mortgages are surging as Canadians pile on the cheap debt, betting that we won’t see a Bank of Canada interest rate hike until the end of next year. The national bank recently noted that more than half of new mortgages made by banks, including renewals and refinances, were variable rates in July. With…
The interest rate is often a yo-yo game, so any kind of loan you take is going to be a gamble! That five-year mortgage you locked in at an interest rate of 3.19% seemed like a pretty good deal two years ago. But the fixed rate is now sitting at 1.99%, even less for a…
The Bank of Canada took a step towards easing pandemic stimulus — the biggest yet by a major economy! Not only did it say it would reduce purchases of government debt (which was expected), it also brought forward its timeline for a possible rate hike. Previously, the Bank had forecast that slack in the economy…
Homebuyers and homeowners rushed to join the party when the pandemic produced some of the cheapest mortgages in Canadian history. Extremely low interest rates, fewer home listings and high demand fuelled sales. As a result, over half a million homes homes changed hands in 2020, according to the Canadian Real Estate Association. But now, 5…
If you’re shopping for a new mortgage, you may read around a lot of scepticism concerning the variable-rate. Are they an unnecessary gamble? On the plus side, you may win for at least a year or two by taking the chances; but after that, it’s finger-nail biting time. Years 4 and 5 could prove very…
