Best Canadian Mortgages

06/19/2022

Amazing Investment Opportunity,

12/07/2020

11/01/2020

On Tuesday, Mortgage Professionals Canada released the results of its most recent Rapidly Evolving Expectations in the Housing Industry report. The third in a series of studies that kicked off in August, October’s report found that Canadian consumers have maintained overwhelmingly positive attitudes toward homeownership since COVID-19 cases began spiking at summer’s end.

MBN spoke to MPC CEO Paul Taylor about the results

10/26/2020

Canada’s budget deficit will end 2020 “near 20% of GDP,” according to the IMF. “That represents the fourth-highest projected deficit in the world, after Libya, Aruba and the Maldives,” As regular readers know, the 5-year bond generally steers fixed mortgage rates. And while the BoC hasn’t formally adopted a “yield curve control” policy for the 5-year bond, it has been snapping up 5-year government debt week after week since April. That’s helped keep Canada’s 5-year yield below 0.40% for most of the last five months.

—The Mortgage Report: Oct. 21— Canada’s budget deficit will end 2020 “near 20% of GDP,” according to the IMF. “That represents the fourth-highest projected deficit in the world, after Libya, Aruba and the Maldives,” says Bloomberg News. With that degree of fiscal hemorrhaging in Ottawa...

10/18/2020

Home sales soared 45.6 per cent from a year earlier, the Canadian Real Estate Association says.

10/18/2020

While Bank of Canada Governor Tiff Macklem has not dismissed the possibility of further rate cuts, a new Better Dwelling analysis is warning that negative rates will not lead to the market boom that proponents assume. Contrary to expectations that negative rates will help stimulate the economy, they might come at a time when there’s nothing left to stimulate.

The Bank of Canada already has an unconventional policy tool in the form of quantitative easing

10/06/2020

The ratio of national mortgage debt to GDP has already exceeded 80%, according to Statistics Canada. That means, mortgage debt grew over 40% faster than GDP. Considering this ratio was just 39.62% in 2000, that’s a huge increase. Especially if the economy doesn’t just bounce back to pre-pandemic levels of activity soon.

Canada appears to be largely dependent on debt-driven growth, according to analysts

08/23/2020

First-time home buyers are often on a tight budget, where every dollar is carefully accounted for. Yet, many report confusion when told how much money to bring to their lawyer’s office to complete their home purchase. It’s often thousands more than they expected. It focus on the three biggest items that come up quite frequently as unexpected costs: property tax adjustments; mortgage interest adjustments; and PST on mortgage-default insurance.

First-time homebuyers are often on a tight budget, where every dollar is carefully accounted for. Yet, many report confusion when told how much money to bring to their lawyer’s office to complete their home purchase.

08/13/2020

Mortgage experts say the Bank of Canada will reduce the benchmark qualifying rate—a.k.a., “stress test rate”—from 4.94% to 4.79% this week. National Bank of Canada cut its posted 5-year fixed rate by 15 bps on Monday, following similar cuts by BMO and CIBC over the weekend, while RBC and TD lowered their rates last week.

The stress test rate is about to fall for the second time in three months now that most of Canada's Big Six banks have reduced their 5-year fixed posted rates.

08/01/2020

Despite deep economic pain caused by the global pandemic, the Canadian economy—and the housing sector in particular—appears to be bouncing back from the near-complete shutdown of society…at least for now.

Despite deep economic pain caused by the global pandemic, the Canadian economy—and the housing sector in particular—appears to be bouncing back from the near-complete shutdown of society…at least for now. That’s thanks in large part to numerous government measures meant to keep liquidity flo...

07/30/2020

Canada’s central bank is desperately trying to prop up real estate markets with liquidity. Since the government of Canada guarantees all CMBs, they pay very little interest. In a normal market, when demand rises for CMBs, interest paid falls even further. When demand drops, interest rates typically rise to attract more investment.

Canada’s central bank is desperately trying to prop up real estate markets with liquidity. Bank of Canada (BoC) has been injecting billions into Canada Mortgage Bonds (CMBs). The central bank began purchasing a few million worth of bonds during last year’s real estate slow down. As the pandemic ...

07/19/2020

The Bank says it is committed to maintaining the current rate and monetary policy until the majority of the recovery from the COVID-19 pandemic has occurred. It has reiterated that we are at the lower bound and should not expect rates to go lower.

The Bank of Canada announced it is keeping its target for the overnight rate stable, at 0.25%. This is the effective lower limit of the overnight rate.