CategoryMortgage Rates

Posted November 1, 2016 Mortgage News

Mortgage Brief…TD raises it Bank Prime… going rogue .. for now!

In what I’d call, a Halloween Hangover move, TD announced they will be raising their Bank Prime Mortgage rate to 2.85% from 2.70%. In a circular I received today from TD, they threw us yet another surprise, in a month full of surprises.

What’s interesting is that on Oct 19, the Bank of Canada Governor, Stephen Poloz, was quoted saying he was considering lowering the rate.

Variable Rate mortgages are priced from the Bank Prime rate. TD is adding a 0.15% premium to all Variable rate mortgage clients.

We should be watching for the other BIG SIX BANKS to follow. If they don’t in the next week, the perhaps TD will pull back. TD seems to be telling us it’s due to market conditions (whatever that means). Personally, I think it’s just greed. There’s not real reason to raise the rates….

Stay tuned… this story hasn’t fully played out yet.

Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Posted September 6, 2016 Interest rates

US election year… low rates today, but higher rates tomorrow.?

Looking at this pic, aren’t you happy to be living in Canada? Ok.. back to the article…

September 7th is the sixth of eight scheduled meeting dates for 2016. The Bank of Canada governor, Stephen Poloz, is expected to leave the rate unchanged. The Bank of Canada rate affects Bank Prime rates and Variable mortgage rates. It also affects Fixed mortgage rates, indirectly.

Historically, Canadian mortgage rates have followed the US election year. As we lead up to an election, rates tend to lower than normal. And in the months after the election, rates go up. Not always, but this happens often.

Will this happen in 2017? Hard to say… however, we’ve seen the US Fed Reserve Chair, Janet Yellen, state that the US rate could go up as soon as Sept 21.

This may or may not happen. Ms. Yellen has hinted at a looming rate hike for months. (sort of reminds me of our previous Bank of Canada governor, Mark Carney, making numerous statements of a pending rate hike that didn’t materialize for years). Be careful, she could be known as “The woman who cried wolf”?

Stay tuned.. the next few months could be a bit of a roller coaster.. And as always, don’t panic. If you’re not sure, contact an experienced Mortgage Broker for neutral, unbiased advice.

Oh, by the way, did you know we are experiencing the lowest fixed rates in history? For those that have a mortgage, congrats. You should be paying less interest than ever before.

Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Posted July 15, 2016 Interest rates

Mortgage Brief…Bank of Canada doesn’t change rate..

This week, the Bank of Canada Governor, Stephen Poloz, held rates steady. No increase or decrease. click here for BoC report.

The Bank of Canada meets 8 times a year, at preset meeting dates. The Target Rate is used by Canadian Banks to set their Prime rate. This also affects Variable rate mortgages and even influences short term rates.

Bad news is good news for mortgage rates. Inflation is under 2% (well below the 3% max that is needed before rates climb).. And the Canadian economic outlook is still not strong enough to support a potential rate increase.

So, for now, enjoy the low rates… actually, they’ll probably be around for a lot longer..

Remember, we are experiencing record low rates.. but this doesn’t mean we should all jump into a 5 yr fixed rate product.. We all have different wants, needs and goals.. Speak with a Mortgage Broker to get professional advice.

Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Posted June 21, 2016 Mortgage News

New record low fixed rates… how low can they go?

5 yr fixed rates just got better. With last weeks U.S. Fed chair, Janet Yellen, saying these low rates are the ‘new normal’, the markets reacted.

Bond yields are down and that has moved fixed rates lower. The best full featured, no handcuffs 5 yr fixed rate is 2.49% (yes, some fast closing specials exist but 2.49% is the best today). (oh, by the way, Yellen wasn’t the first govt rep to say this. Our own Senior Deputy Governor for the Bank of Canada, Carolyn Wilkins, said this 2 yrs ago.. Go Canada!)

Hard to believe they keep going lower. Does that mean we should jump into a 5 yr fixed? For some, yes. But for many of us, no. For over a decade, I’ve recommended Variable rate or a short term priced products. History has proven that short term priced products result in lower cost to the borrower.

However, there is something to be said for peace of mind. Many of us want to set it and forget it. For those that can’t sleep at night or for those that are borrowing to invest, then perhaps, 5 yr fixed makes sense.

If you really want to know what’s best for you and your situation, you must speak with an unbiased mortgage professional. A Mortgage Broker doesn’t work for any one Bank. They work for you. They will give you unbiased, neutral advice and they can offer hundreds of different products.

Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

Posted May 31, 2016 Interest rates

Should you look at 10 year fixed rate mortgages?

Today, right now, we are experiencing all-time record low fixed mortgage rates. Great news if you need a mortgage. And some of you may be thinking of locking into a longer term mortgage. Let’s take a look at that option.

Going longer could be an option for some. The Best 5 yr fixed is around 2.59%.. some special deals exist for larger mortgages or faster closings… but let’s use 2.59% for now. Does it make sense to pay 0.30% more for the first 3 years of your mortgage, just for the benefit of knowing what your rate will be for the last 2 years?

(a warning… you’ll see lower rates advertised.. but be careful. There are so many NO FRILLS products or products that carry inflated penalty calculations, limited repayment options and other hidden fees.. stay away from those)

Continue reading “Should you look at 10 year fixed rate mortgages?”