Bank of Canada maintains the rate steady. Your variable rate mortgage remains unchanged. Admits that the outlook remains ‘heavily clouded’, however, states that the current programs are improving market function. ‘Impact of the COVID-19 pandemic on the global economy appears to have peaked, although uncertainty about how the recovery will unfold remains high. The Bank’s […]

Not extraordinary, but good news nonetheless.  Since the last newsletter, the qualifying benchmark rate has dropped to 4.94%, down from 5.19% before COVID-19.  This means you can qualify for slightly higher mortgage, or for some folks, it actually means graduating from a B lender to an A lender.  If this trajectory continues, we should see […]

Bank of Canada had their scheduled meeting today, and decided to hold the rate steady. It stated it considers its current rate the ‘effective lower bound’. Also announced new measures to provide additional support. “The Bank’s Governing Council stands ready to adjust the scale or duration of its programs if necessary. All the Bank’s actions […]

So Why Are Mortgage Rates For New Loans Rising? From Dominion Lending Centres Chief Economist, Dr. Sherry Cooper, see link below to full article My Summary: The banks have reduced prime rates by 1.5%, but have hiked mortgage rates for new fixed- and variable-rate loans. These are extraordinary times. The good news is that people […]

Great economic insight on today’s Bank of Canada rate drop from Dominion Lending Centers Chief Economic, Dr. Sherry Cooper. My summary: Strains in the commercial paper and government securities markets triggered today’s action to engage in quantitative easing. These large-scale purchases will create the liquidity in the financial system. Risk has risen, which creates the […]

Mortgage deferrals are on the table.  But don’t assume guaranteed automatic approval.  Details depend on lender. See DLC COVID-19 page  https://dominionlending.ca/covid-19/ for contact info.  Have patience, lender phone lines are jammed.  Some lenders offering email request forms to streamline. Some lenders loosening up requests to extend to deferral on rental property as well. For the most part, some explanation […]

Bank of Canada lowers overnight rate by 0.5% again.   This totals 1.5% drop in the last several weeks.  Most lenders are matching this latest drop, prime rate for the most part is now 2.45% (updated).  Your variable rate mortgage and secured lines of credit  will benefit.  Exact word from BoC: “The intent of our decision […]

Many of the major lenders are providing beneficial options during this time to help alleviate some of the financial stress you may be facing.  Depending on your lender, you will be able to defer your mortgage payments for up to six months as well as being able to potentially re-amortize the loan or make special […]

So much going on in mortgage news. A very brief snapshot over the last couple of days: Modification to the stress test for insured mortgages, that was to be implemented Apr 6, is on hold. Bank of Canada cut overnight rate by another 0.5%.  Prime rate is 2.95%.  Your existing variable rate mortgage and secured […]