Tag Archives: prime lending rate

Mortgage Monday Rate Update – May 2013

May 6, 2013

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For those that are shopping for a new house, or looking to do a refinance (or even just a simple mortgage renewal), rates and numbers are an important part of the mortgage equation. 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. As has been the case pretty much since we started these Mortgage Monday Rate Updates, there hasn’t been a tonne of movement in the world of mortgage rates.

  • The Bank of Canada interest rate continues to be stuck at 1.00%.  The next meeting is at the end of May, but indications are it will continue to stay where it is for a while yet.
  • 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.  We probably won’t see this start to move up well into 2013 or even 2014.
  • The qualifying rate (the rate you would need to qualify at for a variable mortgage) for a 5-year mortgage is still 5.14% (recently down from 5.24%). That being said, there are still not too many folks  getting into a variable mortgage these days with fixed rates continuing to be so low.
  • The current best variable rate (can change on a daily basis) is in the prime-0.40% (2.60%) ballpark, though many lenders are still currently offering ‘prime’ as their variable rate.
  • The current best 5-year fixed mortgage rate (this can change daily) continues to hang out in the 2.79%-2.99% range, depending on qualifications and options.  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).  Be careful when looking at some of the heavily discounted rates – many of them are considered “no-frills” mortgages and can come with restrictive options which could end up costing you thousands.
  • While the “hot term” in Canada these days may be moving away from the 10-year and back toward the more common 5-year term, the full-featured, 10-year fixed mortgage continues to be popular with rates as low as 3.69% (check out my posts from last year on the 10-Year Mortgage Below 4% and Should You Consider a 10-Year Mortgage?).  Based on the history of lending rates, locking in for 10 years at well-below 4%, or 5 years for less than 3% is nothing short of fantastic.

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 – November 2011

November 21, 2011

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As many of you know, my wife and I had our first child a couple of weeks ago (a healthy baby boy, Markus), so if you were wondering where the past 2 “Mortgage Monday” posts were – I skipped them to either a) spend time with my new son and/or b) to sleep. 😉  Needless to say, I’m back for my weekly posts, and have a monthly rate update for you (though there has not been much movement from the stats last month).

  • The Bank of Canada interest rate is still holding steady at 1.00%. The last meeting date for 2011 is December 6th (expect it to stay at 1% for a while).
  • The Bank of Canada prime lending rate is still 3.00%. The last meeting date for 2011 is December 7th (again, expect that to hold steady at 3% for the time being).
  • The qualifying rate (the rate you would need to qualify at for a variable mortgage) for a 5-year mortgage is up .1% to 5.29%.
  • The current best variable rate (changes daily) is in the area of prime-0.25% (2.75%), though the discounts are crawling closer and closer to prime and we’re even seeing quite a few lenders at prime+ rates – always contact a mortgage broker for the current best rates for your situation.
  • 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.

A couple of weeks ago, CAAMP (The Canadian Association of Accredited Mortgage Professionals) released its fall consumer report, so as an added bonus, I’ll include some significant statistics from that report as well.

  • 22% of mortgages in Canada have amortization periods of more than 25 years, but this number increases to 38% among borrowers who took out a new mortgage on a newly purchased home in 2011
  • 78% of borrowers who renewed their mortgage in the last 12 months saw a reduction in their rate
  • 71% of borrowers have a high degree of satisfaction with their current mortgage terms
  • More than a quarter (27%) of borrowers used a mortgage broker
  • Variable rate mortgages are increasing in popularity, with 31% overall; and for those who took out a mortgage in the last 12 months, this rises to 37%
  • A vast majority of Canadians have the ability to afford higher mortgage payments: 84% of borrowers can handle an increase of $200 or more per month
  • Of the overall housing market, Canadian homeowners have about $2.035 trillion in equity, equivalent to about 68% of the total housing value
  • 78% of borrowers who have a mortgage or line of credit on their home have at least 25% equity in their home
  • 94% of borrowers have at least 10% equity in their home

Some interesting stats (well, maybe only interesting to those of us in the market…). 😉 If you’re so inclined, you can read the full survey report here.

Can you believe just over a quarter of Canadians used a mortgage broker last year? If you have used one in the past, what was your experience like? If you haven’t, what’s holding you back?

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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