Tag Archives: interest rate

Mortgage Monday Rate Update – June 2012

June 11, 2012

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Whether you like it or not, stats and numbers are a part of the world of mortgages. When rates change even the slightest of percentage points, it could cost or save you thousands of dollars. Every once in a while, here on the Mortgage Monday posts, I’ll update you on what’s going on in the world of mortgage rates. If this kind of stuff doesn’t really interest you, I won’t be offended if you just skim through it – I’ll try to make it as painless as possible. ;)

  • The Bank of Canada interest rate held stead yat 1.00%  for a 14th consecutive time early in the week, which was expected, but the Bank’s commentary reflected the ongoing challenges in the global economy and shifted sentiment clearly away from a rate increase anytime soon. There was even some limited speculation of a possible rate cut.  The next meeting date is July 17th, 2012.
  • The Bank of Canada prime lending rate is also holding steady at 3.00%. It has also been holding steady since Fall 2010 – if the bank rate goes up, the prime lending rate will follow.  At the earliest, we’re probably looking at late 2012/early 2013.
  • The qualifying rate (the rate you would need to qualify at for a variable mortgage) for a 5-year mortgage has dropped to 5.24%.  Not many folks are getting into a variable mortgage these days (variable rates just aren’t competitive with fixed rates right now – so this doesn’t affect that many folks).
  • The current best variable rate (changes daily) is in the prime-0.1% (2.9%) ballpark, though many lenders currently are offering ‘prime’ as their variable rate.
  • The current best 5-year fixed mortgage rate (changes daily) has dropped slightly and is now in the 3.09% range – again, always contact your mortgage broker for current best rates for your situation (and as we’ve talked about previously, The Best Mortgage Rate is Not Always the Best Option).
  • The “hot term” in Canada these days is still the full-featured, 10-year fixed mortgage with rates as low as 3.89% (check out my post from a couple of months ago on the 10-Year Mortgage Below 4% and my post from two weeks ago: Should You Consider a 10-Year Mortgage?). If you want to lock in for a decade and record-low rates, definitely take a look at locking in for 10 years at less than 4%.

As noted above, some of these numbers change monthly, where as some change daily. While I’m happy to provide an update on what’s going on as rates, if you’re interested on getting personalized mortgage advice, speak to your favorite mortgage broker who can help you decide the best rates and options for you.

Tim

Tim is a mortgage agent in Barrie who specializes in helping first-time home buyers. He works with a variety of lenders and can help customize a mortgage with the best rates & options that fit the needs of each customer.

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Mortgage Monday Rate Update – February 2012

February 6, 2012

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Whether you like it or not, stats and numbers are a part of the world of mortgages. When rates change even the slightest of percentage points, it could cost or save you thousands of dollars. Every once in a while, here on the Mortgage Monday posts, I’ll update you on what’s going on in the world of mortgage rates. If this kind of stuff doesn’t really interest you, I won’t be offended if you just skim through it – I’ll try to make it as painless as possible.

  • The Bank of Canada interest rate is holding steady at 1.00%. Doesn’t look like this will be changing any time soon. The next meeting date is March 8th, 2012.
  • The Bank of Canada prime lending rate is also holding steady at 3.00%. It has also been holding steady since Fall 2010 – I also wouldn’t be surprised if we see ‘prime’ at 3% for quite a while still (the next meeting date is March 9th, 2012).
  • The qualifying rate (the rate you would need to qualify at for a variable mortgage) for a 5-year mortgage has dropped from 5.29% down to 5.14%. This is low as it’s been in, well, decades (though it was down as low as 5.19% as recently as September 2011).
  • The current best variable rate (changes daily) is still in the prime-0.2% (2.8%) ballpark, though many lenders currently are offering ‘prime’ as their variable rate.  With the loss of “discounted” variable rates, the majority of mortgage-seekers are opting for fixed rates.
  • The current best 5-year fixed mortgage rate (changes daily) is still hovering around the 3.19% – 3.39% range – again, always contact your mortgage broker for current best rates for your situation.
  • The new “hot term” in Canada these days in the 10-year fixed mortgage (changes daily), with rates as low as around 4% (though watch out for the restrictions on these heavily discounted rates – check out my post from a couple of weeks ago on the 10-Year Mortgage Below 4%).

As noted above, some of these numbers change monthly, where as some change daily. While I’m happy to provide an update on what’s going on as rates, if you’re interested on getting personalized mortgage advice, speak to your favorite mortgage broker who can help you decide the best rates and options for you.

Tim

Tim is a mortgage agent in Barrie who specializes in helping first-time home buyers. He works with a variety of lenders and can help customize a mortgage with the best rates & options that fit the needs of each customer.

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Mortgage Monday Rate Update – December 2011

December 19, 2011

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This is going to be the last Mortgage Monday blog post for 2011 (we’re all going to take next week off). I figure the best way to end the posts for the year is a look back at rates.

Whether you like it or not, stats and numbers are a part of the world of mortgages. When rates changes even the slightest of percentage points, it could cost or save you thousands of dollars. Every once in a while, here on the Mortgage Monday posts, I’ll update you on what’s going on in the world of mortgage rates. If this kind of stuff doesn’t really interest you, I won’t be offended if you just skim through it – I’ll try to make it as painless as possible.

  • The Bank of Canada interest rate is holding steady at 1.00%. It was at 1.00% at the beginning of 2011, and it’ll be at 1.00% through the end of the year. The next meeting date is January 17th, 2012.
  • The Bank of Canada prime lending rate is also holding steady at 3.00%. It has also been holding steady since Fall 2010 – I wouldn’t be surprised if we see ‘prime’ at 3% for quite a while still (though the next meeting date is January 18th, 2012).
  • The qualifying rate (the rate you would need to qualify at for a variable mortgage) for a 5-year mortgage is still 5.29%. It has been as low as 5.19% and as high as 5.69% in 2011.
  • The current best variable rate (changes daily) is in the prime-0.2% (2.8%) ballpark, though many lenders currently are offering ‘prime’ as their variable rate. It seems, at least for the time being, prime with no discount is the new standard (so if you locked in at prime-.5% or better in 2011, consider yourself lucky!).
  • The current best 5-year fixed mortgage rate (changes daily) is in the 3.19% – 3.39% range – again, always contact your mortgage broker for current best rates for your situation.

As noted above, some of these numbers change monthly, where as some change daily. While I’m happy to provide an update on what’s going on as rates, if you’re interested on getting personalized mortgage advice, speak to your favorite mortgage broker who can help you decide the best rates and options for you.

Tim

Tim is a mortgage agent in Barrie who specializes in helping first-time home buyers. He works with a variety of lenders and can help customize a mortgage with the best rates & options that fit the needs of each customer.

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What is “Prime Rate”?

October 31, 2011

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The Prime Lending Rate in Canada (like in many other countries) is a reference interest rate charged by banks and lenders to their most “creditworthy” customers. In reality we find that most banks and lenders in Canada base their best interest rate (usually in the form of a variable interest rate) on the prime lending rate, plus or minus a certain percentage. This is why you hear rates like “prime -.5%” and “prime + 3.25%” etc. While all banks and lenders base their rates on the prime lending rate, rates do different from lender to lender (so Lender A could have a variable rate of “prime -.2%” while Lender B could have a rate of “prime +.15%”). This model allows lenders to remain competitive while still adhering to the fluctuating prime interest rate (so if the prime rate goes up or down, all the interest rates go up or down by the same amount).

The Bank of Canada meets every once in a while (eight times per year), and based on a variety of factors (primarily on Canadian economic conditions and the state of the global economy) decides if the prime rate should stay where it is, or be moved higher or lower. They make this change in the prime lending rate when they decide it is necessary to boost the economy (lower the lending rate) or slow it down (raise the lending rate). They met for the 2nd-to-last time in 2011 last week, and as expected, kept the prime lending rate at 3.00% (where it’s been for over a year).

The next Bank of Canada meeting (and the last of 2011) is set for December 6th. That being said, most agree that the prime lending rate isn’t going to move again until at least mid-2012.  If you have (or are thinking about getting) a mortgage with a variable interest rate, your current rate (and therefore payment amounts) should be stable for the time being.

Tim

Tim is a mortgage agent in Barrie who specializes in helping first-time home buyers. He works with a variety of lenders and can help customize a mortgage with the best rates & options that fit the needs of each customer.

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Mortgage Monday Rate Update – October 2011

October 10, 2011

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Whether you like it or not, stats and numbers are a part of the world of mortgages. When rates changes even the slightest of percentage points, it could cost or save you thousands of dollars. Every once in a while, here on the Mortgage Monday posts, I’ll update you on what’s going on in the world of mortgage rates. If this kind of stuff doesn’t really interest you, I won’t be offended if you just skim through it – I’ll try to make it as painless as possible. ;)

  • The Bank of Canada interest rate is holding steady at 1.00%. The next meeting date is October 25th, but I think everyone expects it to stay at 1% for the time being.
  • The Bank of Canada prime lending rate is also holding steady at 3.00%, and is expected to stay there for quite a while.
  • The qualifying rate (the rate you would need to qualify at for a variable mortgage) for a 5-year mortgage is 5.19% (down 0.2% from 5.39% in August).
  • The current best variable rate (changes daily) is in the prime-0.5% (2.5%) ballpark, though the discounts are crawling closer and closer to prime and we even saw a prime+0.05% last week – always contact a mortgage broker for current best rates for your situation.
  • The current best 5-year fixed mortgage rate (changes daily) is in the 3.25% – 3.40% range – again, always contact your mortgage broker for current best rates for your situation.

As noted above, some of these numbers change monthly, where as some change daily. While I’m happy to provide an update on what’s going on as rates, if you’re interested on getting personalized mortgage advice, speak to your favorite mortgage broker who can help you decide the best rates and options for you.

Oh, and Happy Thanksgiving!!

Tim

Tim is a mortgage agent in Barrie who specializes in helping first-time home buyers. He works with a variety of lenders and can help customize a mortgage with the best rates & options that fit the needs of each customer.

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